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

Each market will set up an office according to its own situation, and look for a local distributor with strength and qualifications.

This drudgery was entrusted to Ke Cilei, CEO of Xinfei Company.

"I feel as if I'm conquering the world, with an average of one or two ......countries a week," Ke Cilei, CEO of Xinfei Electronic Technology, said in an interview later, "It took about three months for Asia to be conquered by VCDs." After that, we developed our business to the United States, Europe, Japan, etc., of course, the development of these markets was a bit slow, but after all, we still achieved a huge victory, VCD only took two years, surpassing the video recorder, becoming the most used home film and television player. This product allowed our company to become one of the world's top 500 companies, and its market value quickly surpassed that of Apple after listing...... Through the invincible offensive of VCD, I am fully aware of the importance of technological innovation and cheapness, and if the two magic weapons are combined, then it is possible to be invincible! Later, we have been adhering to this concept to provide consumers with advanced and cheap products. Even though many companies accuse us of unfair competition and dumping below cost, we think we are doing the right thing, and a large number of consumers and partners support us in doing so!"

In fact, the success of VCD, in addition to the low cost of the machine itself, Hong Kong's film and television content has also made a huge contribution to its initial development.

Since March 1983, the number of film and television content in VCD format has increased at a rate of dozens every day. Although most of these contents are old movies and TV series from the past, the massive amount of new content still gives consumers a lot of confidence that they will not be able to find a film to watch after buying a VCD.

In the 80s, Hong Kong was a leader in Asia due to the excellent production level of films and TV dramas (experience in catering to audiences).

Since Hong Kong films themselves have been accepted by the market in most parts of Asia, VCD has also benefited from this and quickly opened up the market in Southeast Asia.

In addition, video hall operators, which were popular in the domestic market in the 80s, also quickly accepted VCDs.

Opening a video hall in the 80s was definitely a very lucrative business. Because, the ticket price of domestic cinemas is not high, but the business concept is outdated, and the source of movies is also very small. Often a movie is screened for more than half a year, and some old copies are used to make up the number all year round.

Compared with the cinemas of this era, the video hall shows 10 non-repeating movies a day. A large number of film sources are imported films from Hollywood and Hong Kong, and imported films that can be seen in movie theaters are rare. Therefore, the audience prefers to go to the video hall to watch the movie rather than the cinema.

However, an imported video recorder, after multi-layer resale, can be sold for as much as 20,000 yuan in China. Therefore, for many entrepreneurs, the capital threshold is very high.

The price of VCD is lower than that of video recorders, so the financial threshold of the video hall is lowered, so a large number of VCD DVD players have appeared in almost every city in the land of China as a video hall for playing film and television content, and the source of the film is mainly genuine VCD purchased from Hong Kong!

That's right!

At present, pirated CDs and VCDs cannot be found, after all, the current CD disc factories have not yet blossomed everywhere. Due to the threshold of technology, the copyright protection is surprisingly good.

If it were the 90s, the copyright protection of CDs and VCDs would become a headache for many copyright manufacturers.

……

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

If it is necessary to increase the production, it is only necessary to reduce the monthly production capacity of ICD record players and CD-ROMs, and give priority to the supply of VCDs for laser heads, then the monthly production capacity of VCDs can be increased to more than 1 million units at most.

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

First of all, as a new start-up electronics company as a patent troll, the number of registered international patents has exceeded 5,000 around the CD industry chain. Even if some patents are not used by oneself and are other technical routes, it is ...... Even if you don't use it yourself, you occupy the pit and don't let others.

Such a rogue approach leads to conventional commercial competition methods, and there is no way to bypass the patent barriers of new start-up electronics companies in the fields of CD-ROM and VCD.

Indeed, at present, Sony has also obtained CD basic patent authorization, but at present, Xinfei Electronics' ICD occupies the dominant position in the CD record player market, and Philips shares a huge operating dividend by holding half of the equity of Xinfei Company, and naturally will not continue to license patents to cultivate more competitors.

Moreover, even Sony has only obtained the basic patent a few years ago, and it can develop a CD player on the basis of this patent, but its marking is not compatible with the standards of Xinfei Electronics. At the same time, there are a number of patent barriers that need to be bypassed to develop products like CD-ROMs or VCDs. As a result, Sony is now embarrassed in the CD business, unlike in history, Sony was one of the leaders of the CD standard, and later, Sony was very partial to CD technology. From the first generation to the fourth generation, the main game software was used as CDs (and DVDs or Blu-ray DVDs), and only small mechanical hard disks were used to store game saves and data. It wasn't until the PS4 era that there was a 500G hard drive, which allowed you to install some games on the hard drive instead of having to use a disc to run the game.

But in the history of this side of the world, Sony had to endure the pain of watching its beloved CD patents monopolized by rogue companies. Without CD-ROM technology, Sony would not have had as easy access to the gaming industry as it has historically. Historically, Sony Daihatsu was good, because in the early days, Sony used CDs as a carrier to run games, and the capacity was naturally much larger than cassette. Players who have been playing games that are a few megabytes in size suddenly find out that the games on Sony's PS terminal have hundreds of megabytes, and of course it is a miracle.

And now the new venture electronics, is around the CD basic patented technology, its various application potential, to the extreme!

Music Market – ICD Record Players

Computer and game console market - CD-ROM

Home Audio-Visual Entertainment Market - VCD

Therefore, at present, competitors in the market are scolding in their hearts when they see that CD patents have produced so many application technologies with huge market potential in a short period of time.

As for some copycats who don't pay much attention to decency, first of all, it has to understand the principles of a bunch of technologies, these technologies, Xinfei Electronics has not formulated open technical standards white papers, yellow books, and red books for reference.

Even if some manufacturers understand these principles through disassembly, it is not a simple matter to manufacture. The precision parts of VCDs in this era are not as big cabbage as they were in the 90s, and only a very few manufacturers can supply them.

And the reason why those copycat manufacturers are copycat manufacturers, not well-known manufacturers in the industry. The main reason is that its R&D and process level are not good, and only the core components can be bought on the market, and the cottage factory can make a little money for the difference in assembly price. In essence, copycat factories do not have R&D and innovation capabilities, and hardware is not easy to buy on the market, so they can't build it.

It is precisely because of the technical threshold that VCD was first cracked in 84, but it was not until the early 90s that large-scale copycats really encountered it.

It's just that at that time, Xinfei Technology Company had already launched a new product DVD, and VCD had become an outdated product. [.]