Cassette tapes still popular in some circles
By Savannah Morning News
Created 2007-08-05 23:30

WAVERLY, Neb. - The first obituaries for cassette tapes appeared more

  than

20 years ago when CDs hit the market.

Sales of music tapes plummeted from 442 million in 1990 to about

  700,000

last year, according to the Recording Industry Association of America.

Anyone trying to impress a girl with the perfect combination of songs

  can

probably burn a CD or assemble an MP3 playlist in a matter of minutes.

  They

needn't spend hours dubbing the perfect tape as the main character did

  in

the novel and movie "High Fidelity."

But cassette tapes still thrive in specialty markets because of the

  format's

enduring advantages.

Officials at the last cassette maker in North America, Lenco-PMC Inc.,

  say

the plastic cases - invented in 1964 to hold two miniature reels for

magnetic tape - remain popular in at least three uses: Audio books for

  the

blind, court recordings and religious messages.

Lenco general manager Daryl Chapelle predicts the 200-worker plant just

outside Nebraska's state capital will make about 22 million cassettes a

  year

for each of the next several years.

That's a far cry from the 175 million cassettes Lenco made in 1995 at

  the

height of the business, but Chapelle is confident demand will remain

  steady

at least through 2009.

"The truth is new technology does not replace old technology for

  years,"

Chapelle said.

Lenco's cassettes include everything but the magnetic tape, which is

inserted later by another company. That allows audio duplicating

  companies

to record numerous copies at high speed to save time before loading the

  tape

into cassettes.

Lenco thrived in the cassette tape business by making a better cassette

  than

foreign competitors that made a cheaper product.

"We always had trouble competing on price," Chapelle said. "But

  typically

those cheap imports weren't consistent. The bigger users had to have

consistency to run their machines."

One of Lenco's biggest customers today is the National Audio Co. in

Springfield, Mo., which then makes blank and recorded tapes.

National Audio president Steve Stepp said the audio cassette "is still

  the

most versatile, durable, economic recording material ever invented."

Cassette vs. CD

The Library of Congress' National Library Service for the Blind and

Physically Handicapped has relied on cassettes for its audio books

  since the

early 1970s.

"We have found cassettes to be durable," said Jane Caulton, the

  program's

spokeswoman. "They have been cost-efficient. And they have been easy

  for our

customers to use."

Tapes can carry a Braille label to help blind users determine what's on

them, and that's something that wouldn't work well on CDs because the

  label

would interfere with the operation of slot-loading players.

The library is preparing to switch to a digital medium for its audio

  books,

but that transition depends on getting Congress to approve funding and

  won't

be done until 2012 at the earliest.

Cassettes are still generally popular for audio books because of a

  basic

advantage they have over CDs: When someone moves a tape from one player

  to

another, the recording resumes from exactly where it stopped.

"It is still the 10,000-pound gorilla in the spoken-word world," Stepp

  said.

Cassettes are also a popular medium for some religious groups, he said.

Tapes are well-suited to recordings of the Bible or small batches of

  sermons

because it's more cost-effective to record small batches of recordings

  on

tape than on compact disc.

A CD holds about 80 minutes of material while tapes are available in a

number of different lengths, up to 120 minutes. Stepp said his company

charges about 33 cents per CD or per 77-minute tape when they're bought

  in

bulk. But if the recording is shorter or longer than 80 minutes, buying

  the

appropriate length tape would be cheaper than CDs.

Plus, cassette cases cost less than half what CD cases cost, and tapes

  can

be re-recorded.

The durability of tapes is a key selling point for groups doing

  missionary

work because tapes won't scratch and aren't as heat sensitive as CDs.

"You can take a cassette player out in the middle of a jungle or desert

  and

it will work," Stepp said.

Many courts also still buy tapes from National Audio to record hearings

because tapes are easy to use and relatively cheap, especially if cases

  are

factored in. Stepp said it's also easy for court officials to review

information on a tape.

And Stepp said court systems are reluctant to invest the money it would

  take

to switch over to a digital format such as CDs.

Even though those three groups are likely to continue using cassettes,

  much

of the market for them has disappeared.

"On the music side, it's pretty much dead," Chapelle said.

Tape sales reached new heights in the 1980s - more than 15 years after

  its

introduction - thanks to the Sony Walkman and other handheld players.

The U.S. market for blank tapes peaked in 1994, when 438.9 million

  tapes

were sold, according to the Content Delivery and Storage Association,

  which

started in 1970 as the International Tape Association to help set

  standards

for tapes. The group quit tracking cassette sales after 1997 when 296.2

million tapes were sold, the group's president Charles Van Horn said.

Today cassettes account for only about 5 percent of Lenco's roughly $34

million annual revenue. Two production lines in the Waverly plant

  remain

dedicated to churning out 42 cassettes a minute instead of the 10 tape

production lines it once employed.

The company has prepared for the cassette's ultimate end. Nearly a

  decade

ago Lenco began making an assortment of CD and DVD cases for music and

  movie

distributors.

Van Horn said it's amazing that tapes have thrived as long as they

  have, and

that longevity is unlikely to be matched.

"It's hard to believe we're going to ever see a product last this long

  in

the industry," Van Horn said.

###




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