Chapter 182: The Game Changer - Part 1

Optical discs are simply one of the storage mediums known to the public, representing a technology known as optical recording or optical storage.

This technology works by using a low-power laser beam to 'burn' digital data into the disc's spiral tracks. During playback, a low-power laser scanner 'reads' the pits on the disc's surface, converting light signals into electrical signals through the intensity of the reflected light.

Given its complex technology, it has spawned many patents.

The foundational one emerged in 1958: the laser disc technology, invented by David Gregg, an engineer at Western Electric. After patenting it, he founded his company to research this technology. Recognizing its potential, MCA acquired it in 1968, making the original manufacturing patent of optical discs a technical reserve of MCA.

Subsequent developments, like the optical disc audio and video technology of 1965 and the video disc system of 1968, were based on Gregg's 1958 invention. They indeed had their patents, but none could circumvent the foundational work from 1958.

When Evelyn Johnson revealed this fact to Ethan Jones, he was completely dumbfounded!

"Oh, Evelyn, are you saying that Philips' current technology is being developed based on patents owned by MCA? Do they have to pay MCA patent fees?"

"In theory, yes."

The girl nodded, "Now, whoever wants to make optical discs can't bypass MCA."

"Unless they want a lawsuit."

'...' Ethan was somewhat speechless.

He genuinely hadn't anticipated that the optical disc patents capable of leveraging a hundred-billion-dollar market were held by MCA. Their involvement in setting standards while providing content seemed as if they were time travelers.

'Wow, is the world this terrifying?'

'Are all these big corporations so visionary?'

'Wasn't it agreed that Americans never plan?'

'How did their calculations extend decades into the future?'

Ethan was perplexed, and he also inquired doubtfully, "Oh, Evelyn—how do you know all this? I mean, how do you know who holds the patent?"

"If you know so much, do you understand why MCA acquired this patent? What do they want to do?"

Evelyn couldn't help but smile wryly at Ethan's rapid-fire questions.

"Oh, Ethan, I'm just a person, not God. I can only answer what I know. Why do I know this? Because the technology once received support from the Stanford Research Institute. As for why MCA bought the patent? You'd better ask Steven..."

David Gregg, a Californian with his home in Los Angeles, sought collaboration first with Stanford Research Institute, the leading research institution on the West Coast when he began researching optical disc recording, burning, and duplication. The subsequent patents were jointly refined by both parties.

Such cutting-edge information might be difficult for outsiders to access, but what about insiders?

How many research projects within the institute are genuinely secured?

When easily accessible information was presented before Ethan, he was rendered speechless. He had always considered himself smart, capable of effortlessly reaping the benefits of the era with a world's worth of knowledge at his disposal.

However, after experiencing Nintendo's relentless pursuit of chips, Philips' early optical disc strategy, and MCA holding patents from decades ago, he truly felt that no company surviving for decades or centuries was simple. They might have committed foolish acts, but those were merely the result of betting on the wrong trend. They might have been short-sighted or unlucky, but they were definitely not unintelligent.

'These guys are not simple at all!'

Ethan mused internally.

Given the direction pointed out by Evelyn, he decided to make a trip to Los Angeles.

When he drove to Universal Studios the next day, Spielberg was unexpectedly out of the office.

After inquiring around, he learned that "Close Encounters of the Third Kind" had been completed, and Spielberg had gone to Columbia for a screening. If nothing went awry, he would return in the afternoon.

"Mr. Jones, would you like us to call the director and ask him to come back immediately after he's finished?" a Universal employee offered.

"No need, I'll wait for him here," Ethan declined, waving his hand. "It's noon now, I'll go to your cafeteria for lunch, then find a place to rest. That should be fine, right?"

"Of course, Mr. Jones. The director has instructed us to treat you and Mr. Lucas as his best friends, with the same hospitality as we would him."

The Universal employee escorted Ethan to the cafeteria. After filling his stomach, Ethan took a nap in the VIP room within the studio until the crisp knocking sound woke him, revealing Spielberg in a black shirt.

"Wow, did you get a new haircut? That's really cool."

Seeing Spielberg's neatly combed hair, Ethan gave a thumbs-up.

"Yeah, got it done specially." Spielberg flicked his hair. "Today's screening had

 attendees from North American cinemas. They will decide the number of screenings for my movie, so I needed a stylish haircut to ensure they find me reliable upon meeting."

'...' Ethan paused for a moment before exclaiming, "Oh Steven~ When you consistently declared 'Star Wars' to be a great movie, you became the most reliable director in the world!"

"If anyone still thinks you're not reliable, I'll go and give them a piece of my mind!"

"That would be foolish!"

"Hahaha—" Ethan's words made Spielberg burst into laughter.

Perhaps because "Close Encounters of the Third Kind" had received widespread acclaim at the test screening, Spielberg was in a great mood. After chatting about his work for a while, he naturally inquired about Ethan's visit. Upon learning of Ethan's interest in the optical disc technology owned by MCA, Universal's parent company, Spielberg laughed and said, "Optical discs? You wouldn't happen to have been researching Philips, would you?"

How could Ethan admit the truth to such a question?

He shrugged, "I just heard some news about Philips not wanting to give up on Magnavox's Apollo project team because they're quite satisfied with the video interface Apollo possesses."

"Oh, I get it, I get it." Spielberg didn't dwell on Ethan's statement.

He playfully punched Ethan's shoulder, saying, "Brother~ there's no need to be so cautious~"

"After you helped George, we truly became family."

"We are a family!"

Spielberg exclaimed, then with a smile, motioned for Ethan to follow him. Upon entering his office, Spielberg retrieved a blue plastic case from a drawer.

"This is…" Ethan squinted.

"'Jaws'." Spielberg opened the palm-sized case, revealing two discs printed with the movie's poster in front of Ethan.

Ethan's pupils dilated at the sight.

Spielberg gestured for him to sit as he turned on the office's television, revealing a machine as thick as a briefcase inside the TV cabinet.

As Spielberg fiddled with the device, a drive familiar to Ethan from his previous life ejected from the machine. After inserting the disc, the previously static-filled screen turned black, but within seconds, the Universal logo appeared on the screen.

This reality made Ethan furrow his brows, "Steven? You already have products?"

Truth be told, even after hearing that MCA held the patents for optical discs, Ethan had prepared himself for all possibilities. Yet, witnessing it firsthand still left him astonished.

His astonishment wasn't due to the product itself but because his guess was completely accurate.

When "Jaws" appeared on the optical disc, Ethan was certain that Philips was indeed using Magnavox to promote their new standard.

As he marveled, Spielberg resettled on the couch, saying, "Ethan, if you want to understand optical discs… then we have a complex story to tell…"

"Because this story happened ten years ago…"

Just as Ethan had suspected, when MCA noticed the potential of optical disc technology in the 1960s, they believed it could be a trendsetter. It could carry audio and video, allowing Hollywood entertainment to break free from cinema constraints and enter homes like television. Consequently, MCA immediately acquired it and sought to develop it vigorously.

During their research, MCA discovered that Philips, a globally renowned consumer goods company, was also studying this technology. More importantly, their research directions differed: MCA focused on transparent discs, while Philips worked on reflective discs, the latter seemingly having an advantage.

Since the basic patents for optical discs in America belonged to MCA, Philips approached them, hoping to collaborate on the project. Eager for superior technology, MCA agreed and reached a specific agreement. In their partnership, Philips was responsible for producing players, while MCA produced the discs, "splitting" the potential vast market.

With a bright future ahead, technical personnel from both companies began diligently working on optical discs in 1969. After three years of development, the laser disc capable of carrying movies was finally created.

Now that the product was ready, the next step was to register patents and launch it into the market.

Aware that promoting such a product would require continuous content output, MCA took the initiative, negotiating with other Hollywood companies, hoping they would join. After some persuasion, they reached a financial agreement. Thus, Universal and Philips decided to launch the device in North America in the following year, 1978.

And naturally, the first movie to accompany the launch was "Jaws," directed by Universal's prince.

"When Sidney told me they had decided to make 'Jaws' the first commercial movie to be released on optical disc in North America, I had already been playing with this thing..."