Steve Blank (The Four Steps to the Epiphany) tells the story of the Video Spigot and the Novelty Effect:
It was early 1991 and Apple’s software development team was hard at work on QuickTime, the first multimedia framework for a computer. At the time no one (including Apple) knew exactly what consumers were going to do with multimedia, it was still pre-Internet. But the team believed adding video as an integral part of an operating system and user experience (where there had only been text and still images) would be transformative.But Apple had planned to announce and demo QuickTime without a way to get video into the Mac. They had this great architecture, and Apple had figured out to get movies into their own computers for a demo, but for the rest of us there was no physical device that allowed an average consumer to plug a video camera or VCR into and get video into a Mac.
A month or two before the QuickTime public announcement in May, the SuperMac hardware engineers (who had a great relationship with the QuickTime team at Apple) started a “skunk works” project. In less than a month they designed a low-cost video-capture board that plugged into the Mac and allowed you to connect a video camera and VCR. But to get video to fit and playback on the computers of the era, they needed to compress it. So SuperMac engineering also developed video compression software, called Cinepak. The software was idiot proof. There was nothing for the consumer to do. No settings, no buttons — plug your camera or VCR in and it just worked seamlessly. (The Cinepak codec was written by the engineer who would become my cofounder at Rocket Science Games.) It worked great on the slow CPUs at the time.
Engineering gave us a demo of the prototype board and software and asked, “Do you guys think we can sell a few of these boards?” Remember, this is the first time anyone outside of Apple or the broadcast industry had seen moving images on a Macintosh computer. (A company called Avid had introduced a $50,000 Mac-based professional broadcast video editing for two years earlier. But here was a $499 product that could let everyone use video.) Our engineers connected a VCR, pushed a button and poured in the video of the Apple 1984 commercial. We watched as it started playing video at 30 frames/second in a 320 x 240 window.
Up until that moment Quicktime had been an abstract software concept to me. But now, standing there, I realized how people felt when they saw the first flickering images in a movie theater. We must have made them play the demo twenty times. There were a few times in my career I knew at that moment I was watching something profound — (Holding the glass masks of the Z80 microprocessor. My first IPO at Convergent. First silicon of the MIPS RISC processor.) I stood there believing that video on computers was another — and equally as memorable.
When we all regained the power of speech, our reaction was unanimous, “What are you talking about — can we sell it? This is the first way to get video into a computer, we’re going to sell and market this board like there’s no tomorrow. Even though we won’t make a ton of money, it will be an ambassador for the rest of our product family. People who aren’t current customers of our graphics boards will get to know our company and brand. If we’re smart we’ll cross-sell them one of our other products. We might even sell a few thousand of these.”
Everyone laughed at such an absurd number.
“What are we going to call it? Lets see. It’s video input. How about we call it the Video Spigot?”
Now, in hindsight, with a spigot, you’re actually pouring stuff out, and, in fact, the ad actually shows you stuff pouring stuff out, but into your Mac. It made no logical sense (a fact engineering reminded us about several times.) But it made the point that this device could pour video into your Mac and consumers instinctually got it.
Our CEO and our VP of manufacturing were incredibly nervous about manufacturing more than a few hundred of these boards. “There’s nothing to do with this product once you get the video in. You can’t manipulate it, you can’t do anything other than playback the video in QuickTime.” And they were right. (Remember there were no video applications available at all. None. This was day zero of consumer video on the Mac.)
Our answer was, “People will love this thing, as long as we don’t oversell the product.” We knew something our CEO didn’t. We had seen the reactions of people playing with the prototypes in our lab and when we demo’d it to our sales force. When we saw our salespeople actually trying to steal the early boards to take home and show their kids, we knew we had a winner. All we had to do was tell customers they could get video into their computer — and not promise anything else.
But the rest of the management team really skeptical. We kept saying, “Don’t worry, we’re going to sell thousands of these.” Little did we know.
We launched the product with this ad that said “Video Spigot, now pour video into your computer,” and this just hit a nerve.We sold 50,000 Video Spigots in six months.