In April 1983, Xinfei Electronics Company promoted VCD to one regional market after another at a rapid speed.

Each market will set up an office according to its circumstances and will look for local general agents with strength and qualifications.

This chore was entrusted to Ke Cilei, the Xinfei company's CEO.

"I feel like I'm conquering the world, and on average I have to conquer the markets of one or two countries every week..." Xinfei Electronic Technology Company Ceo Ke Cilei later said in an interview, "It took about three months, and Asia has basically been conquered by VCD. After that, we developed our business to the United States, Europe, Japan, etc. Of course, these markets are a bit slow, but we finally achieved a huge victory. VCD took only two years to surpass the video recorder and become the home film and television player with the most users. This product

Products have enabled our company to be one of the world's top 500 companies, and its market value quickly exceeded Apple after its listing... Through the invincible offensive of VCD, I fully realized the importance of the two magic weapons of technological innovation and cheapness. If the two magic weapons are combined, then it may be invincible! Later, we have always adhered to this concept and provided consumers with advanced and cheap products. Even though many companies accused us of unfair competition and dumping at lower cost, we think we did the right thing, and a large number of consumers and partners supported us in doing so!"

In fact, in addition to the low cost of the machine itself, the success of VCD also made great contributions to its early development.

Since March 1983, the content of the vcd format has grown at a rate of dozens of movies every day. Although most of these contents are old movies and TV series from the past, a large amount of new content has given consumers a lot of confidence, so that they will not be able to find a movie to watch after buying vcd.

In the 1980s, Hong Kong was leading in Asia with its excellent production level of film and TV series (who caters to the audience's experience).

Because Hong Kong films themselves are accepted by the markets in most Asian regions, VCD also benefits from this and quickly opened up the market in Southeast Asia.

In addition, video hall operators who were popular in the domestic market in the 1980s also quickly accepted vcd.

Opening a video hall in the 1980s was definitely a very profitable business. Because the ticket prices of domestic cinemas were not high, but their business concepts were outdated and the source of movies was very small. A movie was often screened for more than half a year, and they used some old copies to make up for the numbers all year round.

Compared with cinemas of this era, the video hall displays 10 non-repetitive movies a day. A large number of film sources are imported from Hollywood and Hong Kong, and the number of imported movies that can be seen in cinemas is rare. Therefore, audiences prefer to go to the video hall to watch movies rather than cinemas.

However, an imported video recorder can be sold at a price of up to 20,000 yuan in China after multiple layers of resale. Therefore, for many entrepreneurs, the capital threshold is very high.

The price of vcd is lower than that of video recorders, so the funding threshold for video halls has been lowered. As a result, a large number of vcd DVD players have appeared in almost every city in China as video halls for playing film and television content, and the film source is mainly genuine vcd purchased from Hong Kong!

That's right!

Currently, pirated CDs and vcds cannot be found. After all, the current CD CD factories have not yet blossomed everywhere. Due to the technical threshold, copyright protection is surprisingly good.

If it were the 1990s, the copyright protection of CD and VCD would have become a headache for many copyright manufacturers.

...

In order to open up the market as quickly as possible, Xinfei VCD is not only cheap (relative to video recorders), but also has a monthly production capacity of up to 600,000 units.

If it is necessary to increase the production, only the monthly production capacity of ICD record machines and CD-ROM is needed, and the laser head assembly should be used to supply VCD first. Then, the monthly production capacity of VCD can be increased to more than 1 million units.

Therefore, Xinfei VCD will not encounter the problem of insufficient production capacity at present, so the market is snatched away by followers.

First of all, as a patent rogue, the number of registered international patents around the CD industry chain has exceeded 5,000. Even if some patents cannot be used by themselves, it is other technical routes, but... even if you don't use them, you will still occupy a pit and not let others shit.

Such a rogue approach leads to conventional commercial competition methods, and it is impossible to bypass patent barriers for new entrepreneurial electronic companies in the fields of CD-rom, VCD, etc.

Indeed, Sony has also obtained the CD basic patent license, but Xinfei Electronics' ICD currently occupies the dominance of the CD record player market. Philips has shared huge operating dividends by holding half of Xinfei's equity, and naturally it will not continue to authorize patents to cultivate more competitors.

Moreover, even Sony only obtained the basic patent from a few years ago. It could develop CD record machines based on this patent, but its labeling is incompatible with the Xinfei Electronics standard. At the same time, if you want to develop products like CD-rom or VCD, you need to bypass a lot of patent barriers. This has led to the embarrassment of Sony's current CD business. Unlike in history, Sony was one of the leading players of the CD standard. Later, Sony favored the CD technology very much. Including the later game consoles Ps, from the first generation to the fourth generation, the main game software carriers were CD (and DVD or Blu-ray DVD), and only mechanical hard disks with very small capacity were used to save game archives and data. It was not until the Ps4 era that it had a 500g mechanical hard disk, which could install some games on the hard disk to play, instead of having to use a CD to run games.

But in the history of the world, Sony had to bear the pain of watching his beloved CD patent and was monopolized by rogue companies. Without the CD-rom technology, it would probably not be as easy as in history to enter the game industry. In history, Sony made great progress because the early Sony company used CD as a carrier to run games, and the capacity was naturally much larger than the cassette. Players who have been playing games of several MB sizes suddenly discovered that the Sony Ps terminal games had hundreds of MB, which of course was a miracle.

Nowadays, the new entrepreneurial electronics focuses on CD basic patent technology and taps its various application potential to the extreme!

Music Market-ICD Record Machine

Computer and game console market—cd-rom

Home Audio and Video Entertainment Market—VCD

Therefore, the current competitors in the market are scolding when they see that CD patents have developed so many application technologies with huge market potential in the short term - Damn!

As for some copycat imitators who do not pay much attention to decentness, first of all, they have to understand the principles of technology. Xinfei Electronics has not formulated public technical standards for white papers, yellow papers, and red papers for reference.

Even if some manufacturers understand these principles through disassembly, it is not a simple matter to make them. The precision components of VCD in this era are not as good as those in the 1990s, and only a few manufacturers can supply them.

The reason why those counterfeit manufacturers are counterfeit manufacturers, not big companies in the industry, is mainly because their R&D and process levels are not good. Only when you can buy core components in the market can the counterfeit factories make a little price difference in assembly. In essence, counterfeit factories do not have the ability to research and development and innovation, and it is not easy to buy hardware in the market, so they cannot make it.

It is precisely because of the technical threshold that VCD was first cracked in 1984, but if you really encounter large-scale copycats, you have to wait until the early 1990s.
Chapter completed!