Consumer Indifference Hits Digital vs. MiniDisc War

The war of the new digital technologies, DCC (digital compact cassette) vs. MD (MiniDisc), has hit an unexpected snag--consumer indifference.

Both new technologies debuted just before Christmas. So far, though, neither has been a big hit, according to a spot survey of stores around the country. Retailers reported that the state of the economy was such that even the upscale customers were hesitant to invest in a new format.

The digital compact cassette machine, marketed principally by Philips, plays both digital and standard cassettes. Sony’s MiniDisc is a tiny recordable disc, resembling a tiny CD. Both formats produce sound close to CD quality. The DCC is available in home decks while the MD is geared to the portables market. The MD players sell in the $600-$800 range, while the DCC players are $800 to $1,000. Prerecorded music is available in both formats.

Most consumers so far haven’t been willing to shell out money for the units. Salespeople report many customers are curious--but not enough to buy.

A salesman at a Good Guys store in Los Angeles, who didn’t want to be identified, summed up the feelings of many consumers.

“These new formats are nice but they don’t offer people anything radically different,” he said. “You can record on the MiniDisc, but that’s not a reason to get into a whole new format. People are still getting used to CDs. None of these formats is offering sound better than CD sound. If the sound was incredible and much better than CD sound, you’d get more consumer interest. If they were a lot cheaper, more people would be interested. Customers come in here and look at both formats, ask questions and wind up saying ‘no thanks.’ ”

Both format launches were supported by massive ad campaigns. But neither launch was smooth. The DCC came out in November, about a month late. The MD came out in December but had shipment problems, placing stores in the embarrassing position of informing customers that the machines they were paying for wouldn’t be available for a few weeks.

Some store owners were concerned that the early MD shipment problems might cool interest in the format.

The early buzz in audio circles is that the DCC is superior to the MD, or nearly indistinguishable from CD sound. The sound of the MD, say some experts, is good but not quite up to CD quality.

Sony executive Bob Sherwood bristles at such comparisons. “You can’t compare home decks (like DCC) to portables, “ he said. “The MD format is geared to the portable market. Compare the MD to the portable CD players and see how they stack up.”

The MD, with its skip-proof technology, is clearly superior to the portable CD player.