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Kenjiro Takayanagi, a television broadcasting pioneer then working for JVC as its vice president, saw the need for his company to produce VTRs for the Japan market, and at a more affordable price.

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In the 1970s and early 1980s, there was a format war in the home video industry.

Two of the standards, VHS and Betamax, received the most media exposure.

JVC released the CR-6060 in 1975, based on the U-matic format.

Sony and Matsushita also produced U-matic systems of their own.

Matsushita agreed, primarily out of concern that Sony might become the leader in the field if its proprietary Betamax format was the only one allowed to be manufactured.

Matsushita also regarded Betamax's one-hour recording time limit as a disadvantage.

Later, Sony had a functional prototype of the Betamax format, and was very close to releasing a finished product.

With this prototype, Sony persuaded the MITI to adopt Betamax as the standard, and allow it to license the technology to other companies.

JVC believed that an open standard, with the format shared among competitors without licensing the technology, was better for the consumer.

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