At the Consumer Electronics Show in Chicago, JVC made a groundbreaking announcement by introducing its VHS videotape format to the public and industry stakeholders. This innovation aimed to provide consumers with a more efficient way to record and watch television programs at home. The launch was part of a larger push by JVC and other manufacturers to develop a competitive format that could rival Sony's Betamax system, which had already entered the market. One of the key differentiating factors for VHS was its ability to record longer periods of video—typically two hours on a standard tape, compared to Betamax's one hour. This feature was particularly appealing to consumers who wished to capture entire movies or lengthy television broadcasts without needing to change tapes frequently.

As the industry gathered in Chicago, the response to VHS was overwhelmingly positive, with many praising its user-friendly design and potential for affordability. This was critical at a time when consumers were beginning to embrace the concept of home video entertainment, setting the stage for a significant shift in how people consumed media. Companies quickly began to adopt VHS as a standard, leading to a fierce format war that would consume much of the late 1970s and 1980s home entertainment landscape. VHS's dominance in recording time and cost influenced manufacturer strategies, advertising methods, and ultimately consumer habits.

The competition would reach a fever pitch in the following years, as both formats sought to establish themselves in the marketplace. Retailers began to stock a mix of both formats, while consumers were often left in a bind over which system to choose. JVC's decision to license its technology to other manufacturers was a pivotal moment, as it enabled a wider range of products featuring VHS capability. This move helped VHS gain a substantial market share, which would eventually eclipse the Betamax format and solidify its place as the prominent home video medium for years to come.