[Editor's Note: Chad Kime, who has been one of two writers under the RIAP Writes! banner, now has his own column, which will alternate with RIAP Writes! If you ask me, it's because Chad just got too gloomy and Dave didn't want to deal with it. But seriously. Same guy, different column name. Enjoy.]

Yet another beloved format, the Laserdisc, is teetering upon the edge of extinction in the USA. As this wondrous format makes the painful transition from cutting edge to nostalgic memory, I can't help but reflect upon what circumstances may have killed our poor Laserdiscs, and to estimate how long we have before the funeral. Some may blame DVD, others may blame big electronics companies trying to push yet another piece of hardware into the home, but the reality is many factors killed the laserdisc, most of them are related to money.
There are many similarities that laserdiscs share with another dying 12" format, the Vinyl Long Play Record (LP). Both formats were large and presented beautiful artwork on a grand scale. Both formats were known for being superior to competing formats (LP vs. Cassette Tapes, laserdisc vs. VHS). Both formats benefited from scores of loyal consumers, who claimed that the new 5" optical disc technology suffered from inferior sound quality. And, finally, both formats were marginalized within a few years.
I suspect that the laserdisc, like the LP, will stick around for a little while with prestige pressings for the few remaining loyalists. However, unlike the LP, I expect the laserdisc format to eventually die, probably within the next 2-3 years. Laserdiscs will fade faster than LP's because LP's have the support of musicians who continue to release music on vinyl to make their cool artistic statements. Unfortunately, laserdisc does not have the cool factor going for it since film artists can work in 35mm film, or do all kinds of neat things with the menus on DVD.
Now, on to what really killed the format—dollars and sense.
On the business side, there are basically very few reasons to continue with the LD format. First of all, despite over ten years of manufacturing experience, the cost for pressing LD's was never able to go much lower than $3-4 per side. Compared to the VHS cost of less than $1.50, its easy to imagine the ripple effect: high manufacturing cost leads to high SRP, which leads to low market penetration (fewer players sold), which leads to no perceived growth potential, which finally leads to no research and development money to improve the manufacturing process. Strike 1. Another, parallel effect can also be seen: high manufacturing costs lead to high inventory costs, while large format leads to large warehouses, which lead to higher facilities costs. Strike 2.
For retailers, a similar logical progression foretells the LD's doom. First of all, laserdiscs are not only more expensive than VHS, but they come with a lower discount as well, usually only a 30% discount from the Suggested Retail Price (SRP) instead of the typical 50% for VHS—making VHS 60% more profitable! Therefore, Strike 1. Additionally, laserdisc's take a lot of room (12" wide) for display, and the packaging, especially the corners, is really easy to damage. Strike 2.
Now, here comes DVD to the scene. The retailers instantly realize that if the DVD is ½ the size of a laserdisc, then they can display twice as much DVD product in the same space used by laserdisc's, instantly doubling their efficiency per square foot. Add in the fact that DVD packaging is more durable, the product is equivalent if not lower in price, and that DVD's offer consumers more features, and the result is clear: Steeeriiiiiiiiike Threeeee!!! Laserdiscs have just struck out at the retail level. In fact, one of the top three laserdisc retailers in the country has already let its suppliers know that it would like to be out of the laserdisc business by the end of 1998! While this attitude is extreme, it is by no means an aberration. My guess is that the laserdisc business has dropped at least 70% from last year's levels.
So now let's go back to the manufacturer's POV. DVD is as expensive to master, if not more expensive than laserdisc, but once the master is done, DVD is much cheaper. In fact, within the first year of manufacturing, the duplication cost has already dropped below $3 per disc, and the format doesn't always require multiple sides! The discs are smaller, easier to store, and there for not only is inventory cheaper, but the facilities costs are reduced. Add in the fact that retailers have stopped ordering the laserdiscs and, you guessed it: Strike Three!
It appears that the only reason to continue to make laserdisc's will be out of sheer love for the format, but was the last time that love got the respect of Wall Street?
Let us all mourn the loss of yet another beloved format, and begin harassing the DVD manufacturers to realize the potential of the DVD. If no one will make the discs, and no one wants to sell the discs, what other choice do we have?
Farewell old friends:

Long Play Vinyl—on life support since 198X Laserdisc—terminal since 199X. No hope for recovery...