Research Report: Ampex Corporation
Ampex Corporation 1970s
Corporate Section
Ampex Corporation was headquartered at 500 Broadway, Redwood City, California 94063-3199 during the 1970s. Founded in 1944 by Alexander M. Poniatoff as a spin-off of Dalmo-Victor, the name AMPEX stands for Alexander M. Poniatoff Excellence. The company was incorporated in 1944 as the Ampex Electric and Manufacturing Company, beginning as a manufacturer of motors and generators for military radar equipment during World War II. By the 1970s, Ampex had evolved from its wartime origins into a leading manufacturer of magnetic recording equipment, becoming synonymous with professional tape recording technology worldwide. During this period, the company employed notable figures including Larry Ellison, who worked as a programmer at Ampex and led the Oracle database project for the CIA, code-named "Oracle." The company fostered a culture of innovation under founder Alexander Poniatoff, who brought promising young engineers under his wing, including Ray Dolby who joined at age 19, and Stanford graduates like James Gabbert.
Market Section
The broadcast television equipment market experienced substantial growth during the 1970s, with Ampex generating approximately $92 million in sales by the early 1960s and continuing expansion through the decade. The primary broadcast video recording market was dominated by Ampex's quadruplex format, which ruled broadcasting and video production worldwide for twenty years following its 1956 introduction at $50,000 per unit. The secondary consumer video market emerged in the 1970s with explosive growth potential, as home videotape recording technology became technically feasible and commercially viable for mass market adoption. The home video recorder market introduced in 1975 fundamentally changed the entertainment business, creating new revenue streams through video rental stores and "straight-to-video" film markets. The consumer VCR market experienced rapid growth with VHS format domininating through the late 1970s and 1980s, though Ampex focused primarily on professional broadcast equipment rather than consumer products. Ampex also participated in the emerging data storage market, working with companies like National Cash Register to develop computer data recorders, competing against IBM and Remington Rand's proprietary systems.
Product Section
Ampex's flagship product during the 1970s remained the VRX-1000 quadruplex videotape recorder (renamed Mark IV), which used 2-inch tape and became the global broadcast standard for television stations and networks. The company introduced revolutionary products including the VR-3000 portable broadcast video recorder in 1967, which enabled field recording without cables and support vehicles, and the ACR-25 automated robotic library system for television commercials in 1970. Ampex developed the HS-100 slow-motion/stop-action color video recorder using hard-disc technology, first deployed at the 1968 Mexico City Olympics, and later introduced helical-scan videotape recorders in 1976 for television sports coverage. The company's Oracle Project combined relational database technology with imaging and error-correction methods, later commercialized by Larry Ellison and Robert Miner when they founded Oracle Corporation. Ampex's recording technology innovations included the Miller Code delay encoding patent developed by engineer Armin Miller, which became fundamental to virtually all computer magnetic and optical disc recording systems including hard drives and floppy discs. Platform competition included RCA, General Electric, Sony, Philips, and JVC in video recording, while pure play competitors in broadcast equipment included companies like IVC, and in data storage competed against IBM, Burroughs, NCR, and emerging Japanese manufacturers like Sony and Panasonic.
Bottom Line Section
Television broadcasters, radio stations, recording studios, and professional content producers should purchase Ampex equipment, as the company established itself as the industry standard for broadcast-quality recording with over five decades of technological leadership. Major television networks and large individual stations represented the primary customer base, given the $50,000 price point of professional video recording equipment that only well-funded broadcast operations could afford. Government agencies and large corporations handling substantial data processing requirements should consider Ampex data storage solutions, particularly organizations needing high-performance magnetic recording systems for computer applications. Defense contractors and aerospace companies should evaluate Ampex products for military applications, as the company maintained strong capabilities in ruggedized recording systems for aircraft, satellites, and submarines. Music recording studios and audio production facilities should invest in Ampex professional tape recorders, which revolutionized the recording industry with superior audio quality and operational reliability. Educational institutions and training organizations should consider Ampex video systems, as the company's U-Matic format became the industry standard for educational and training sectors throughout the 1970s.