Next-Gen DVD's Porn Struggle

Legend has it adult entertainment killed Sony's Betamax. Will porn producers' choice of HD-DVD spell trouble for the company's Blu-ray format?

One oft-recalled explanation for the failure of Sony's (SNE) Betamax videocassette format in the 1980s was the Japanese company's ambivalence towards producers of pornographic videos. By contrast, proponents of VHS, Betamax's rival, welcomed adult content with open arms and, the legend goes, caused Betamax's demise. The new gadget also spawned a multibillion-dollar porn video industry along the way.

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