WEBVTT - TechStuff Classic: The Story of Comdex

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<v Speaker 1>Welcome to tech Stuff, a production from iHeartRadio. Hey there,

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<v Speaker 1>and welcome to tech Stuff. I'm your host Jonathan Strickland.

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<v Speaker 1>I'm an executive producer with iHeartRadio and how the tech

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<v Speaker 1>are you? It is time for a tech Stuff classic episode.

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<v Speaker 1>This episode originally published March twenty second, twenty seventeen. It

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<v Speaker 1>is titled the Story of Comdex. There are a few

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<v Speaker 1>the tech related conferences and trade shows that have happened

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<v Speaker 1>over the years. Comdex was a really important one for

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<v Speaker 1>a while, and now we're going to learn more about it. Enjoy.

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<v Speaker 1>This message is from Alex, and Alex said, I really

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<v Speaker 1>enjoy listening to your episodes on CEES and also listening

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<v Speaker 1>to the shows that you broadcast every year from CEES,

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<v Speaker 1>and it got me to thinking about two decades ago,

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<v Speaker 1>there was a popular trade show called Comdex, which is

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<v Speaker 1>not around anymore. I've always wondered what happened to Comdex

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<v Speaker 1>and why it failed as a trade show. I know

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<v Speaker 1>that some famous things happen at Comdex. The blue screen

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<v Speaker 1>of Death coming up on Bill Gates during a Windows

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<v Speaker 1>ninety eight demonstration comes to mind. Thanks for making such

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<v Speaker 1>a great show. Well, thank you, Alex for those kind

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<v Speaker 1>words and for the suggestion. Guys, remember you can always

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<v Speaker 1>write me to make suggestions for show topics or guests

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<v Speaker 1>I should have on the show, or even if you

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<v Speaker 1>just want to say hi. The email address you can

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<v Speaker 1>use is tech stuff at houstuffworks dot com. I'll mention

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<v Speaker 1>that again at the end of the show, but I

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<v Speaker 1>know some of you tune out before I get to that,

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<v Speaker 1>So that's what you can use as an email if

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<v Speaker 1>you want to get in touch with me. Now, let's

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<v Speaker 1>talk about Comdex and its impact on the tech industry.

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<v Speaker 1>I can't just jump right onto condex though, I actually

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<v Speaker 1>have to go back a little bit, and I also

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<v Speaker 1>have to admit this was a surprisingly challenging topic. There's

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<v Speaker 1>not a whole lot written about Comdex as a whole,

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<v Speaker 1>apart from some articles in computer industry magazines from the

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<v Speaker 1>time that usually focused on either an upcoming show, like

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<v Speaker 1>you know, you might read an article in a magazine

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<v Speaker 1>from nineteen eighty seven about Comdex eighty seven being around

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<v Speaker 1>the corner, or you might see an article that is

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<v Speaker 1>talking about just a show that just ended, kind of

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<v Speaker 1>similar to how people cover cees. Right, that'll be an

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<v Speaker 1>article that says, oh, hey, ces is over here what

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<v Speaker 1>the big trends were. But you don't really find a

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<v Speaker 1>whole lot of stuff about the life and death of

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<v Speaker 1>the show as a whole. You have to find bits

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<v Speaker 1>and pieces and then end up putting it all together

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<v Speaker 1>and forming it into a meaningful narrative. So this episode

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<v Speaker 1>is really the result of hours of research. I had

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<v Speaker 1>to piece everything together myself. So typically for every hour

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<v Speaker 1>of podcasts that I print, it takes about eight hours

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<v Speaker 1>of research. That's typical. This one was way more than that.

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<v Speaker 1>It had to be at least twenty hours of research,

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<v Speaker 1>maybe more in order to get all of this. But

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<v Speaker 1>that's enough stalling. Let's talk about comdex. So back in

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<v Speaker 1>nineteen seventy, which is, by the way, many years before

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<v Speaker 1>comdex actually officially began, there was a group of entrepreneurs

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<v Speaker 1>based out of Needham, Massachusetts, and they included Robert Bob

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<v Speaker 1>Lively and Milton Burns, and they created a magazine covering

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<v Speaker 1>the world of computers and data communications. And the name

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<v Speaker 1>of that publication was The Data comm User, and datacom

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<v Speaker 1>was one word and two ms at the end of comm.

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<v Speaker 1>This was before the era of the personal computer. It

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<v Speaker 1>was even before the era that you would be able

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<v Speaker 1>to purchase a kit and make your own personal computer.

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<v Speaker 1>This was the era of many computers and micro computers

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<v Speaker 1>that were only meant for business or research purposes, so

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<v Speaker 1>you didn't really see them in the home, but they

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<v Speaker 1>were able to create a successful magazine. In two years

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<v Speaker 1>after they launched it, the publishers partnered with a different person,

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<v Speaker 1>a future casino magnate Sheldon Gary Adelson, to launch a

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<v Speaker 1>new trade show that they were calling the Interface Conference

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<v Speaker 1>and Exposition. Now Edelson is or Adelson is an interesting person,

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<v Speaker 1>someone of great influence both in Las Vegas and in politics.

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<v Speaker 1>He would eventually go on to build one of the

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<v Speaker 1>premium casinos on the Strip, the Venetian. Anyway, after several

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<v Speaker 1>successful years of running the Interface Conference and Exposition, the

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<v Speaker 1>group saw another opportunity. So it's nineteen seventy nine. The

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<v Speaker 1>computer industry was starting to gain some traction, with the

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<v Speaker 1>home PC market mostly stuck in the world of hobbyists

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<v Speaker 1>and early adopters. By seventy nine, it was starting to

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<v Speaker 1>slowly emerge from that market, but it wasn't yet to

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<v Speaker 1>the point where computers were becoming household objects. It was

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<v Speaker 1>fairly rare to run into homes that had won. They

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<v Speaker 1>were expensive, and there just weren't a whole lot out there.

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<v Speaker 1>You're talking about early Apple computers, you're talking about the

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<v Speaker 1>Commodore sixty four, the Tandy, that kind of stuff. More companies, though,

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<v Speaker 1>were really looking into incorporating computers into the workplace. So

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<v Speaker 1>the Interface Group organized a new event, and this was

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<v Speaker 1>called the Computer Dealer's Exhibition, which was later shortened to

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<v Speaker 1>the name Comdex. Now, that nineteen seventy nine show was

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<v Speaker 1>modest by later standards, and modest is kind of overstating it.

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<v Speaker 1>It was tiny compared to the show when it reached

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<v Speaker 1>its peak. It took place in the MGM Grand in

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<v Speaker 1>Las Veigs, I guess, and that was the MGM Grand

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<v Speaker 1>at the time. The MGM Grand of today is not

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<v Speaker 1>the same building as the one from nineteen seventy nine,

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<v Speaker 1>two totally different places. Approximately four thousand people attended the show,

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<v Speaker 1>with about one hundred and fifty seven exhibitors present. Now,

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<v Speaker 1>in those days only industry representatives could attend, so you

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<v Speaker 1>had to be inside the computer industry in order to

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<v Speaker 1>be considered for attendance. So general public was not allowed

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<v Speaker 1>to go into the show. It's very similar to the

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<v Speaker 1>way CEES is run, and for many years E three

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<v Speaker 1>ran that way. Although E three twenty seventeen, which is

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<v Speaker 1>you know, I'm recording this in twenty seventeen. E three

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<v Speaker 1>twenty seventeen is the first time in several years that

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<v Speaker 1>the show is going to be open to the general public,

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<v Speaker 1>assuming that you were able to get a badge in time.

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<v Speaker 1>I'm going to be at E three this year, so

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<v Speaker 1>that will be interesting. I can't wait to see how

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<v Speaker 1>it's different from the years past that I have attended

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<v Speaker 1>when it was industry only anyway, Condex when it started

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<v Speaker 1>only allowed industry members and and it really didn't look

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<v Speaker 1>at any of the personal computer stuff at all, because

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<v Speaker 1>again that was such a young market. It was really

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<v Speaker 1>looking at the business applications for computers. So if you

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<v Speaker 1>visit Las Vegas and you go to the MGM Grand,

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<v Speaker 1>like I said, that's not the same casino as the

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<v Speaker 1>one that hosted the first Comdex. If you want to

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<v Speaker 1>visit the building where the first Comdex took place, you

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<v Speaker 1>actually have to go to Bally's because that's what the

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<v Speaker 1>old MGM Grand turned into. So a walk through Bally's

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<v Speaker 1>Casino is also a walk through computer history in a way,

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<v Speaker 1>and they really did focus on many computers, which were

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<v Speaker 1>named Many, but were honestly pretty huge machines to be fair,

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<v Speaker 1>the original computers that came out, those were the ones

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<v Speaker 1>that took up like an entire room or sometimes the

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<v Speaker 1>floor of a building like. They were huge, huge machines.

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<v Speaker 1>Those first computers, the ones that date all the way

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<v Speaker 1>back to like the forties and fifties, but the mini

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<v Speaker 1>computers of the seventies were still pretty massive machines. And

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<v Speaker 1>again they were meant for corporate use or manufacturing or

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<v Speaker 1>things like that. They weren't meant to be on your

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<v Speaker 1>table at home, so they're industrial computers. Almost all the

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<v Speaker 1>interactions at Comdex were all about business to business, with

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<v Speaker 1>computer manufacturers courting big corporations like insurance companies and law firms.

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<v Speaker 1>So really, if you might represent a computer manufacturer, and

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<v Speaker 1>what you're trying to do is get that representative from

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<v Speaker 1>that big insurance company to come see your stuff and say, yeah,

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<v Speaker 1>you know what, I'm going to put in an order

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<v Speaker 1>for X number of machines for us to use at

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<v Speaker 1>our corporate office. That was kind of the purpose for Comdex,

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<v Speaker 1>So it wasn't the sort of convention that the average

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<v Speaker 1>computer junkie would even want to attend that first comdex.

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<v Speaker 1>If you are a big computer nerd, you probably still

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<v Speaker 1>would not be too keen on that first Comdex because

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<v Speaker 1>it just it was geared toward a different type of person.

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<v Speaker 1>It's more for business now. Exhibitors also attended shows like

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<v Speaker 1>Comdex for another reason, not just to connect with potential customers,

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<v Speaker 1>They also wanted to see what the competition was up to.

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<v Speaker 1>Keep in mind, these trade shows allowed companies to show

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<v Speaker 1>off stuff that was in development, stuff that had not

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<v Speaker 1>yet hit the market. That meant that if you were

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<v Speaker 1>a competitor, you might get a look at someone's products

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<v Speaker 1>before they actually hit store shelves, and if you are able,

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<v Speaker 1>you might be able to suss out how those products

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<v Speaker 1>are working and figure out your own version of that

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<v Speaker 1>same product. It's not quite the same thing as copying

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<v Speaker 1>someone else. It might involve some reverse engineering, not a

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<v Speaker 1>little ethically questionable, but it certainly was something that happened

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<v Speaker 1>all the time. If a competitor's computers incorporated a new

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<v Speaker 1>feature that you saw, customers were really finding to be compelling.

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<v Speaker 1>You might go back to your team and say, hey,

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<v Speaker 1>competitor X has this new peripheral and people are going

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<v Speaker 1>gaga over it. We've got to create something equal to

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<v Speaker 1>or better than that for our products. So it's really

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<v Speaker 1>just a fuel for competition. And just like CEES gives

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<v Speaker 1>rise to certain trends each year, so did comdex. So

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<v Speaker 1>another reason why companies would attend is to see what

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<v Speaker 1>trends are starting to come up and should there be

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<v Speaker 1>some that the company needs to get involved in, they

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<v Speaker 1>could end up dedicating some resources to it and then

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<v Speaker 1>become a player in that space. The worst thing in

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<v Speaker 1>the world would be to be left behind and become

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<v Speaker 1>obsolete and see your company's business failed because you weren't

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<v Speaker 1>able to capitalize on an emerging trend. So some companies

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<v Speaker 1>would send people out there just to see, all right, well,

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<v Speaker 1>what's big this year and what do we need to

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<v Speaker 1>pay attention to, So it really was all about business now.

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<v Speaker 1>The event was a success, and the group planned a

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<v Speaker 1>second event for nineteen eighty and this one took place

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<v Speaker 1>in the Las Vegas Convention Center. It had outgrown the

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<v Speaker 1>MGM Grand but a few attendees were staying at the

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<v Speaker 1>MGM Grand. That's just that was the place where they

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<v Speaker 1>had booked a room, but the show had already outgrown

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<v Speaker 1>the conference rooms there. The new venue boasted twenty five

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<v Speaker 1>thousand square feet of exhibition space, and more than seven

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<v Speaker 1>thousand people attended the show, so they nearly doubled in size. Now,

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<v Speaker 1>that was the first year for the show to use

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<v Speaker 1>Comdex as a name, and it was also a tragic year.

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<v Speaker 1>Something really disastrous happened that year. On the very last

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<v Speaker 1>day of the Comdex conference, a fire broke out in

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<v Speaker 1>the MGM Grand overnight, and it was a serious fire,

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<v Speaker 1>and more than eighty people died, most of them from

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<v Speaker 1>smoke inhalation because the smoke went up into the rooms

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<v Speaker 1>and a lot of people were asleep and they never

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<v Speaker 1>woke up. Out of those eighty people, eight of them

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<v Speaker 1>were attending Comdex, and the tragedy marks the worst disaster

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<v Speaker 1>in Nevada history and the third worst hotel fire in

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<v Speaker 1>US history. The cause of the fire was ultimately traced

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<v Speaker 1>to an electrical ground fault in a wall socket. They

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<v Speaker 1>had a nearby cooling unit for a pastry display case

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<v Speaker 1>that had a pair of copper pipes that were exposed.

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<v Speaker 1>The insulation had worn down. The copper pipes had been

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<v Speaker 1>vibrating at times, and that vibration had caused the pipes

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<v Speaker 1>to rub together. The insulation protecting the pipes worn away,

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<v Speaker 1>which meant that they could rub against each other, and

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<v Speaker 1>this eventually caused the short, the electrical short, which then

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<v Speaker 1>caused a fire. The fire spread very quickly and it

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<v Speaker 1>was a huge story both in Las Vegas and in

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<v Speaker 1>the computer industry. Now, despite this tragedy, the conference continued

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<v Speaker 1>and grew. It was on that last day of the conference.

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<v Speaker 1>The following year it was even bigger. You would actually

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<v Speaker 1>see Comdex expand to two shows in that year. So

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<v Speaker 1>in the springtime, the organization launched a Comdex show in

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<v Speaker 1>New York. The fall show stayed in Las Vegas. So

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<v Speaker 1>they were splitting up to two shows a year, with

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<v Speaker 1>one on the East Coast and one in Las Vegas.

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<v Speaker 1>The New York show was a big success. It was

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<v Speaker 1>more than twice as big as the first Comdex show

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<v Speaker 1>in Vegas. It had eleven thousand attendees and two hundred

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<v Speaker 1>and thirty seven exhibitors. That Vegas show happened in the fall,

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<v Speaker 1>and this was huge business, not just for the exhibitors

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<v Speaker 1>and the attending professionals, but also for the organizers themselves.

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<v Speaker 1>They were making a huge amount of profit. At its peak,

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<v Speaker 1>Condex could command fifty nine dollars per square foot of

0:14:22.640 --> 0:14:25.920
<v Speaker 1>exhibit space, and when it was the biggest trade show around,

0:14:26.000 --> 0:14:30.600
<v Speaker 1>there was more than one point three million square feet available,

0:14:31.080 --> 0:14:37.400
<v Speaker 1>and Comdex staffers were really really pushing for companies to

0:14:38.320 --> 0:14:42.160
<v Speaker 1>end up leasing that space, so they were making bookoos

0:14:42.400 --> 0:14:46.960
<v Speaker 1>of dollars serious cash just so they a company can

0:14:47.000 --> 0:14:52.280
<v Speaker 1>rent some carpeted floor. Yeah, if you want to read

0:14:52.480 --> 0:14:57.400
<v Speaker 1>some vitriol about Condex, just do some searches about how

0:14:57.480 --> 0:15:00.600
<v Speaker 1>much money the organizers were making back in these days,

0:15:00.640 --> 0:15:04.040
<v Speaker 1>and how a lot of the exhibitors felt that they

0:15:04.080 --> 0:15:09.520
<v Speaker 1>were being almost like extorted in order to rent larger

0:15:09.560 --> 0:15:12.600
<v Speaker 1>and larger spaces year over year, like they were being

0:15:12.640 --> 0:15:17.400
<v Speaker 1>pressured by staffers who were acting like salesmen to rent

0:15:17.480 --> 0:15:23.160
<v Speaker 1>more space each successful year. It's one of the reasons

0:15:23.160 --> 0:15:26.920
<v Speaker 1>why some companies said that they ultimately abandoned the show.

0:15:27.800 --> 0:15:31.120
<v Speaker 1>Well back in nineteen eighty one, the show was still growing,

0:15:31.360 --> 0:15:34.480
<v Speaker 1>just as the computer industry was growing and holding two

0:15:34.480 --> 0:15:36.640
<v Speaker 1>shows ended up working out with the Spring Show in

0:15:36.640 --> 0:15:38.880
<v Speaker 1>New York and the Fall Show in Las Vegas. So

0:15:38.920 --> 0:15:41.960
<v Speaker 1>in nineteen eighty two they expanded again, and this time

0:15:42.000 --> 0:15:46.040
<v Speaker 1>there were three shows. The Spring event occurred in Atlantic

0:15:46.120 --> 0:15:49.840
<v Speaker 1>City aka the Las Vegas of the East Coast, and

0:15:49.880 --> 0:15:52.960
<v Speaker 1>the Fall Show happened in Las Vegas. But there was

0:15:53.000 --> 0:15:55.520
<v Speaker 1>a third show that happened in Europe and it took

0:15:55.520 --> 0:15:59.280
<v Speaker 1>place in Amsterdam. That marked the beginning of Condex expanding

0:15:59.320 --> 0:16:02.720
<v Speaker 1>beyond the United Stas States. Now that trend would continue

0:16:02.760 --> 0:16:05.840
<v Speaker 1>and snowball over the following years. So you start looking

0:16:05.880 --> 0:16:08.880
<v Speaker 1>at the number of shows Condex was holding year over year,

0:16:09.800 --> 0:16:13.360
<v Speaker 1>and it kept on increasing. In two thousand and two,

0:16:13.440 --> 0:16:19.480
<v Speaker 1>there were eighteen Condex shows scheduled throughout that year, eighteen

0:16:19.800 --> 0:16:23.800
<v Speaker 1>different events across the globe in two thousand and two. Now,

0:16:24.840 --> 0:16:27.760
<v Speaker 1>one of those, the one that was scheduled for Mexico City,

0:16:28.240 --> 0:16:32.000
<v Speaker 1>ended up getting canceled, but that still means there were

0:16:32.080 --> 0:16:34.760
<v Speaker 1>seventeen shows in two thousand and two. I mean, that's

0:16:35.320 --> 0:16:38.280
<v Speaker 1>think about how many resources you would have to dedicate

0:16:38.320 --> 0:16:42.200
<v Speaker 1>to hold that many events around the world. All right,

0:16:42.360 --> 0:16:45.880
<v Speaker 1>But back to the nineteen eighties, So after those first

0:16:45.960 --> 0:16:49.280
<v Speaker 1>few years when everyone was concentrating on many computers and

0:16:49.360 --> 0:16:52.440
<v Speaker 1>business to business type stuff, personal computers began to play

0:16:52.480 --> 0:16:56.120
<v Speaker 1>a role in shows because they were starting to take off.

0:16:56.160 --> 0:16:59.840
<v Speaker 1>People were starting to purchase personal computers at a larger rate,

0:17:00.120 --> 0:17:03.200
<v Speaker 1>was going beyond the hobbyist and beyond the early adopter,

0:17:03.920 --> 0:17:07.359
<v Speaker 1>and so it became part of comdex history. He started

0:17:07.359 --> 0:17:10.240
<v Speaker 1>seeing computers like the Apple two E and the first

0:17:10.280 --> 0:17:15.040
<v Speaker 1>IBM compatible computers. First you saw the IBM computers, and

0:17:15.080 --> 0:17:18.439
<v Speaker 1>then shortly after that you saw the IBM clones that

0:17:18.520 --> 0:17:20.320
<v Speaker 1>were making their way to market. And you also had

0:17:20.359 --> 0:17:23.240
<v Speaker 1>other computers like the Commodore sixty four, the Tandy computer,

0:17:23.520 --> 0:17:27.560
<v Speaker 1>and the Amiga line of computers which originally came from

0:17:27.640 --> 0:17:30.040
<v Speaker 1>Commodore as well. And one of these days I'm gonna

0:17:30.040 --> 0:17:32.160
<v Speaker 1>have to do a full show about Tandy, I think,

0:17:32.400 --> 0:17:34.639
<v Speaker 1>because it's hard to believe that a company that started

0:17:34.680 --> 0:17:37.280
<v Speaker 1>off as a leather goods company got into the personal

0:17:37.280 --> 0:17:40.680
<v Speaker 1>computer business. And for that matter, I should probably talk

0:17:40.720 --> 0:17:44.680
<v Speaker 1>about IBM compatibles and clones too, as that was a big,

0:17:44.760 --> 0:17:47.840
<v Speaker 1>big deal early on in the personal computer age and

0:17:47.880 --> 0:17:49.960
<v Speaker 1>one of the reasons why IBM got out of the

0:17:50.440 --> 0:17:55.840
<v Speaker 1>consumer computer market. Entirely for many years. But the important thing,

0:17:57.080 --> 0:17:58.600
<v Speaker 1>the important thing to remember in this part of the

0:17:58.600 --> 0:18:01.520
<v Speaker 1>Comdex story is that these companies were becoming important enough

0:18:01.520 --> 0:18:06.359
<v Speaker 1>to warrant a spot on the show floor. By nineteen

0:18:06.400 --> 0:18:10.159
<v Speaker 1>eighty three, Condex started holding a show in Atlanta, that

0:18:10.280 --> 0:18:13.480
<v Speaker 1>is the city where I am in. I'm from Atlanta, Georgia,

0:18:13.560 --> 0:18:16.960
<v Speaker 1>so I remember Condex being talked about. I was a

0:18:17.040 --> 0:18:21.240
<v Speaker 1>kid in the eighties and I never attended a Comdex,

0:18:21.280 --> 0:18:24.280
<v Speaker 1>but I remember people talking about them, and the show

0:18:24.359 --> 0:18:29.000
<v Speaker 1>in Atlanta would continue yearly until nineteen ninety six, and

0:18:29.040 --> 0:18:32.800
<v Speaker 1>at that point Condex began to alternate between Atlanta and

0:18:32.880 --> 0:18:37.320
<v Speaker 1>Chicago every year. So I probably would have been pretty

0:18:37.359 --> 0:18:39.359
<v Speaker 1>bored if I had gone to one of the comdexes

0:18:39.359 --> 0:18:42.560
<v Speaker 1>in Atlanta. I mean, these shows were huge, and there

0:18:42.560 --> 0:18:45.760
<v Speaker 1>were lots of booths and everything, but again it was

0:18:45.800 --> 0:18:49.200
<v Speaker 1>mostly about like productivity machines and software, and not really

0:18:49.240 --> 0:18:51.040
<v Speaker 1>the kind of stuff I was interested in, which was

0:18:51.240 --> 0:18:54.120
<v Speaker 1>namely computer games. You didn't really see a whole lot

0:18:54.119 --> 0:18:56.080
<v Speaker 1>of that Condex because that's just not what the focus

0:18:56.160 --> 0:18:59.680
<v Speaker 1>of the show was about. Also, in nineteen eighty three,

0:18:59.720 --> 0:19:03.600
<v Speaker 1>I love this Bill Gates gave his first speech at

0:19:03.600 --> 0:19:06.720
<v Speaker 1>a Comdex in nineteen eighty three, and that would become

0:19:06.760 --> 0:19:10.119
<v Speaker 1>a regular event over future shows, and Gates would end

0:19:10.240 --> 0:19:13.680
<v Speaker 1>up getting larger audiences every year. He would command a

0:19:13.720 --> 0:19:16.880
<v Speaker 1>bigger room every year. It obviously became a much more

0:19:16.920 --> 0:19:20.640
<v Speaker 1>important event in future comdexes, but back in nineteen eighty

0:19:20.640 --> 0:19:24.040
<v Speaker 1>three it was rather modest in comparison, so much so

0:19:24.200 --> 0:19:29.439
<v Speaker 1>that the projectionist for Bill Gates's presentation was his own father.

0:19:30.240 --> 0:19:32.200
<v Speaker 1>I just think that's kind of a charming little bit

0:19:32.240 --> 0:19:35.679
<v Speaker 1>of information. Well, I've got more to say about what

0:19:35.840 --> 0:19:38.399
<v Speaker 1>happened to Comdex in the nineteen eighties, but before I

0:19:38.440 --> 0:19:41.440
<v Speaker 1>get into that, let's take a quick break to thank

0:19:41.480 --> 0:19:53.639
<v Speaker 1>our sponsor. All right, So a couple of big events

0:19:53.680 --> 0:19:57.480
<v Speaker 1>happened in the early nineteen eighties that rippled through Comdex.

0:19:58.320 --> 0:20:01.800
<v Speaker 1>For one thing, the Macintosh debuted in nineteen eighty four,

0:20:02.119 --> 0:20:05.919
<v Speaker 1>and that's when the graphics user interface, or GUY, became

0:20:06.040 --> 0:20:11.240
<v Speaker 1>big in home personal computers. The Windows system Microsoft Windows

0:20:11.320 --> 0:20:14.119
<v Speaker 1>also made a big splash around that same time, and

0:20:14.520 --> 0:20:17.919
<v Speaker 1>Microsoft and Apple had worked together developing a GUY. It

0:20:18.000 --> 0:20:21.440
<v Speaker 1>wasn't exactly you might hear stories about, Oh well, Windows

0:20:21.560 --> 0:20:25.240
<v Speaker 1>was just copying the mac os. It's not entirely true. Actually,

0:20:25.600 --> 0:20:28.159
<v Speaker 1>the two companies were working together to develop Guy's and

0:20:28.240 --> 0:20:32.000
<v Speaker 1>to be fair, the graphic user interface wasn't developed out

0:20:32.000 --> 0:20:36.120
<v Speaker 1>of Apple or Microsoft. The graphic user Interface originated as

0:20:36.160 --> 0:20:40.119
<v Speaker 1>a project out of Xerox Park, But that's another story

0:20:40.119 --> 0:20:45.560
<v Speaker 1>for another time. The graphics user Interface, however, was changing

0:20:45.680 --> 0:20:49.400
<v Speaker 1>computers because it was seen as a much more intuitive,

0:20:49.920 --> 0:20:56.119
<v Speaker 1>easy to understand system than command line systems. So in

0:20:56.160 --> 0:20:58.480
<v Speaker 1>the old days, if you wanted to run a program

0:20:58.520 --> 0:21:01.800
<v Speaker 1>on your computer, you had to type in run in

0:21:01.840 --> 0:21:04.639
<v Speaker 1>the program name, and then the computer would know to

0:21:04.760 --> 0:21:08.720
<v Speaker 1>execute that command and start that program. You might have

0:21:08.960 --> 0:21:12.280
<v Speaker 1>some programs that had an auto startup based upon the

0:21:12.400 --> 0:21:15.520
<v Speaker 1>disc that you were using, and that would make things

0:21:15.560 --> 0:21:19.640
<v Speaker 1>a little more smooth. But until the graphics user interface

0:21:19.680 --> 0:21:21.840
<v Speaker 1>came along, you couldn't just click on an icon and

0:21:21.960 --> 0:21:25.720
<v Speaker 1>have something start. You actually had to type stuff in,

0:21:25.920 --> 0:21:28.920
<v Speaker 1>and it wasn't exactly user friendly for people who weren't

0:21:28.960 --> 0:21:32.439
<v Speaker 1>already interested in computers, so it was sort of a

0:21:32.440 --> 0:21:36.240
<v Speaker 1>barrier to entry. The graphic user interface lowered that barrier,

0:21:36.320 --> 0:21:39.760
<v Speaker 1>and that's really when we started seeing personal computers take off,

0:21:40.520 --> 0:21:43.520
<v Speaker 1>not just for homes, but in schools and all sorts

0:21:43.560 --> 0:21:48.960
<v Speaker 1>of places. So the Macintosh and the Windows system were

0:21:49.040 --> 0:21:52.080
<v Speaker 1>really important, and they dominated the show floor. By nineteen

0:21:52.119 --> 0:21:55.480
<v Speaker 1>eighty five, everyone was talking about Windows based systems and

0:21:55.520 --> 0:21:59.560
<v Speaker 1>graphic user interfaces. And it's funny because if you look

0:21:59.600 --> 0:22:02.959
<v Speaker 1>back on these early comdex shows, you can see the

0:22:03.000 --> 0:22:05.960
<v Speaker 1>debut of stuff that we all take for granted now,

0:22:06.040 --> 0:22:08.680
<v Speaker 1>stuff that you know well of course that exists. Sometimes

0:22:08.680 --> 0:22:11.760
<v Speaker 1>we're looking at debuts from stuff that's completely obsolete at

0:22:11.760 --> 0:22:15.399
<v Speaker 1>this point. So if you are able to find videos

0:22:15.720 --> 0:22:20.159
<v Speaker 1>from that era and you watch them, it's almost comical

0:22:20.520 --> 0:22:25.240
<v Speaker 1>to see them debut because it's ancient history now in

0:22:25.680 --> 0:22:28.880
<v Speaker 1>the computer world. One of the resources I used when

0:22:28.920 --> 0:22:32.800
<v Speaker 1>researching this show was an episode of The Computer Chronicles

0:22:32.880 --> 0:22:36.840
<v Speaker 1>from nineteen eighty six. So at the beginning of that episode,

0:22:36.960 --> 0:22:40.800
<v Speaker 1>the CEO of Digital Research talked about how applications had

0:22:40.840 --> 0:22:44.439
<v Speaker 1>suddenly become important, So he was referring to programs like

0:22:44.520 --> 0:22:49.600
<v Speaker 1>desktop publishing software or spreadsheet management programs, things like that,

0:22:50.400 --> 0:22:52.680
<v Speaker 1>and that they were taking center stage because they were

0:22:52.680 --> 0:22:56.600
<v Speaker 1>taking advantage of this graphic user interface. It's really similar

0:22:56.640 --> 0:22:59.639
<v Speaker 1>in a way to how smartphone apps have become a

0:22:59.640 --> 0:23:03.080
<v Speaker 1>major focus in the tech industry. Today. The hardware is

0:23:03.080 --> 0:23:05.639
<v Speaker 1>still important, but a lot more attention is going towards

0:23:05.680 --> 0:23:11.120
<v Speaker 1>the software running on top of the hardware. Well. Condex

0:23:11.240 --> 0:23:13.960
<v Speaker 1>was also where companies could show off new products like

0:23:14.359 --> 0:23:18.640
<v Speaker 1>laser printers, which in the eighties were super super new

0:23:18.680 --> 0:23:23.359
<v Speaker 1>and exciting, or computer peripherals, or computer systems and software packages.

0:23:23.640 --> 0:23:25.879
<v Speaker 1>And because the industry was heating up, the show just

0:23:25.960 --> 0:23:29.080
<v Speaker 1>kept getting larger and more grandiose every year. And it

0:23:29.119 --> 0:23:33.560
<v Speaker 1>wasn't long before companies began employing young women to entice

0:23:33.600 --> 0:23:38.399
<v Speaker 1>people into booths. And I saw one journalist's account of

0:23:38.440 --> 0:23:42.480
<v Speaker 1>an early nineteen eighties Condex that dismissively referred to these

0:23:42.480 --> 0:23:48.760
<v Speaker 1>women as demo dollies. Now at cees, you tend to

0:23:48.800 --> 0:23:53.040
<v Speaker 1>hear these women being referred to as booth babes, and

0:23:53.160 --> 0:23:55.080
<v Speaker 1>I just like to take a moment to address this

0:23:55.280 --> 0:24:00.280
<v Speaker 1>because it bugs me. So as I get older, I

0:24:00.320 --> 0:24:04.080
<v Speaker 1>get more uncomfortable with these terms. And that's because they

0:24:04.119 --> 0:24:08.359
<v Speaker 1>ignore the fact that these women are human beings. Many

0:24:08.400 --> 0:24:11.639
<v Speaker 1>of them may be hired because of their appearance. You know.

0:24:11.680 --> 0:24:14.639
<v Speaker 1>It might be that they have a modeling agency and

0:24:14.680 --> 0:24:17.679
<v Speaker 1>a company hires them because of their profile and the

0:24:17.720 --> 0:24:21.360
<v Speaker 1>modeling agency, and so it's completely based on their appearance.

0:24:21.400 --> 0:24:23.520
<v Speaker 1>But it doesn't change the fact that we're talking about

0:24:23.560 --> 0:24:27.880
<v Speaker 1>actual people here. I'm not a fan of companies using

0:24:27.920 --> 0:24:30.680
<v Speaker 1>sex appeal to get people to pay attention to their stuff,

0:24:31.119 --> 0:24:33.639
<v Speaker 1>particularly if we're talking about products that have nothing to

0:24:33.680 --> 0:24:36.840
<v Speaker 1>do with being sexy in the first place. But the

0:24:36.880 --> 0:24:41.320
<v Speaker 1>women and men too, because we see male models also

0:24:41.359 --> 0:24:44.320
<v Speaker 1>being pulled in for this duty, especially for things like

0:24:45.160 --> 0:24:50.680
<v Speaker 1>wearables and sports type of technology. At places like ces,

0:24:50.720 --> 0:24:53.280
<v Speaker 1>we see both women and men who are you know,

0:24:53.560 --> 0:24:57.120
<v Speaker 1>chiseled from marble showing these off. But that makes sense,

0:24:57.280 --> 0:25:01.320
<v Speaker 1>you understand, right, all right, This person is fit and

0:25:01.400 --> 0:25:04.560
<v Speaker 1>the product is promising to help you get fit, so

0:25:04.920 --> 0:25:07.480
<v Speaker 1>you see the connection there. It's a little more tough

0:25:07.520 --> 0:25:12.000
<v Speaker 1>if you're like, this is a case for a smartphone

0:25:12.400 --> 0:25:15.520
<v Speaker 1>and this woman wearing barely anything is holding the case.

0:25:16.359 --> 0:25:20.359
<v Speaker 1>It's a little harder to justify. I don't hold it

0:25:20.400 --> 0:25:22.879
<v Speaker 1>against the models. They're doing a job. They were hired

0:25:22.880 --> 0:25:24.640
<v Speaker 1>to do a job, and that's what they're doing. And

0:25:24.760 --> 0:25:27.920
<v Speaker 1>I also realize that my opinions are just my own,

0:25:28.560 --> 0:25:31.160
<v Speaker 1>and that I'm probably being a bit too old fashioned

0:25:31.200 --> 0:25:34.320
<v Speaker 1>but my main point is just to remember these are people,

0:25:34.800 --> 0:25:38.919
<v Speaker 1>not just a walking, talking display. So I hate terms

0:25:38.960 --> 0:25:41.800
<v Speaker 1>like booth babes or demo dollies, which I think is

0:25:41.840 --> 0:25:46.959
<v Speaker 1>even somehow worse than booth babes because it is so dismissive.

0:25:47.200 --> 0:25:52.680
<v Speaker 1>It's treating a person like an object. It truly is objectification,

0:25:52.760 --> 0:25:56.439
<v Speaker 1>and I don't care for that. So old man lecture

0:25:56.720 --> 0:26:01.360
<v Speaker 1>is over. But seriously, demo dollies come on anyway. By

0:26:01.400 --> 0:26:06.120
<v Speaker 1>the mid nineteen eighties, companies creating IBM compatible machines had

0:26:06.200 --> 0:26:09.400
<v Speaker 1>pretty much run IBM out of the consumer PC business.

0:26:09.480 --> 0:26:13.080
<v Speaker 1>The clones of IBM's machines were perfectly legal as long

0:26:13.080 --> 0:26:15.800
<v Speaker 1>as the company's making them could demonstrate that they didn't

0:26:15.880 --> 0:26:20.800
<v Speaker 1>steal IBM's approach but rather reverse engineered it, which seems

0:26:20.840 --> 0:26:23.000
<v Speaker 1>like a pretty fine detail, but it's one that made

0:26:23.000 --> 0:26:26.840
<v Speaker 1>the production of IBM clones completely legal. More on that

0:26:26.880 --> 0:26:30.480
<v Speaker 1>if I ever do a full episode about IBM compatible

0:26:30.480 --> 0:26:35.560
<v Speaker 1>computers now. Watching the Computer Chronicles also reminded me how

0:26:35.600 --> 0:26:39.919
<v Speaker 1>the industry at that time was dominated by dudes. You know,

0:26:39.960 --> 0:26:42.240
<v Speaker 1>in the nineteen eighties, if you looked at the show

0:26:42.359 --> 0:26:49.480
<v Speaker 1>floor for Comdex, men outnumbered women, by an enormous percentage.

0:26:51.160 --> 0:26:54.000
<v Speaker 1>Apart from the women who were hired to lure people

0:26:54.040 --> 0:26:57.440
<v Speaker 1>into booths, you hardly saw any females on the floor

0:26:57.480 --> 0:27:00.760
<v Speaker 1>at all. But as the industry would make sured, we

0:27:00.800 --> 0:27:05.320
<v Speaker 1>saw more women taking roles in the industry, including leadership roles.

0:27:06.160 --> 0:27:09.280
<v Speaker 1>But I'm pretty sure those early CONDEX shows saw really

0:27:09.359 --> 0:27:12.880
<v Speaker 1>long lines at the men's room and like almost completely

0:27:12.920 --> 0:27:19.040
<v Speaker 1>empty women's restrooms, so an interesting juxtaposition and other compared

0:27:19.040 --> 0:27:22.080
<v Speaker 1>to other arenas. The same thing was true of Consumer

0:27:22.160 --> 0:27:25.119
<v Speaker 1>Electronics Show, and in fact, I would argue it's still

0:27:25.280 --> 0:27:30.560
<v Speaker 1>largely true. We're seeing more and more women on the

0:27:30.600 --> 0:27:36.360
<v Speaker 1>show floor at cees, both in leadership positions and attendees

0:27:36.840 --> 0:27:40.800
<v Speaker 1>that kind of thing, but I think it's still far

0:27:40.840 --> 0:27:43.800
<v Speaker 1>more men than women. But the early days of CONDEX,

0:27:43.920 --> 0:27:50.320
<v Speaker 1>it was ridiculous that imbalance. One of the most amusing

0:27:50.400 --> 0:27:53.240
<v Speaker 1>elements of the Computer Chronicles episode I watched was the

0:27:53.280 --> 0:27:59.119
<v Speaker 1>segment dedicated to portable computers. So back in the nineteen eighties,

0:27:59.240 --> 0:28:03.280
<v Speaker 1>this was nineteen eight those devices were huge, largely because

0:28:03.320 --> 0:28:05.800
<v Speaker 1>they had to have five and a quarter inch floppy

0:28:05.880 --> 0:28:09.960
<v Speaker 1>disk drives, because that was the main media of choice

0:28:10.160 --> 0:28:14.240
<v Speaker 1>in the mid eighties. The laptops, even the light ones,

0:28:14.320 --> 0:28:17.760
<v Speaker 1>weighed somewhere around twelve pounds or more, so they were

0:28:17.800 --> 0:28:19.560
<v Speaker 1>hefty enough that you wouldn't want them on your lap

0:28:19.600 --> 0:28:22.679
<v Speaker 1>for very long. You'd also probably chuckle at hearing some

0:28:22.720 --> 0:28:27.159
<v Speaker 1>of the processor speeds being promoted back in those days.

0:28:27.480 --> 0:28:32.040
<v Speaker 1>You hear something like this processor has sixteen mega hurtz

0:28:32.119 --> 0:28:35.760
<v Speaker 1>processor speed, and that's probably not going to impress you

0:28:35.840 --> 0:28:40.600
<v Speaker 1>very much today, but you know different time. Another interesting

0:28:40.640 --> 0:28:43.640
<v Speaker 1>product that was introduced and featured in that show was

0:28:43.680 --> 0:28:47.120
<v Speaker 1>from Phillips. It was a data storage system that consisted

0:28:47.160 --> 0:28:51.560
<v Speaker 1>of twenty different discs arranged in a case. The discs

0:28:51.600 --> 0:28:55.040
<v Speaker 1>were in cartridges, and a mechanical arm could go up

0:28:55.120 --> 0:28:59.560
<v Speaker 1>or down the rack of cartridges and retrieve or insert

0:28:59.600 --> 0:29:02.760
<v Speaker 1>discs to access the information on them. Now, each disk

0:29:02.880 --> 0:29:05.920
<v Speaker 1>was twelve inches in diameter, and each disc could hold

0:29:05.920 --> 0:29:09.840
<v Speaker 1>two whole gigabytes of information on it, which meant that

0:29:09.880 --> 0:29:14.160
<v Speaker 1>the entire apparatus could hold forty gigabytes. So think about

0:29:14.160 --> 0:29:16.400
<v Speaker 1>that for a moment. They're smartphones right now that can

0:29:16.440 --> 0:29:18.960
<v Speaker 1>hold more than three times that amount of information, and

0:29:19.000 --> 0:29:21.560
<v Speaker 1>those will fit in your pocket. So we've really come

0:29:21.600 --> 0:29:24.640
<v Speaker 1>a long way since the nineteen eighties. We're going to

0:29:24.720 --> 0:29:27.640
<v Speaker 1>take a quick break in the story of context to

0:29:27.800 --> 0:29:39.600
<v Speaker 1>thank our sponsors, but we'll be right back. The nineteen

0:29:39.640 --> 0:29:42.720
<v Speaker 1>eighty six condext show also had some of the earliest

0:29:42.720 --> 0:29:46.479
<v Speaker 1>devices that we would put into the wearable category today.

0:29:47.000 --> 0:29:51.200
<v Speaker 1>Puma showed off a gadget that snapped onto their running

0:29:51.240 --> 0:29:54.719
<v Speaker 1>shoes and it had a microprocessor inside of it that

0:29:54.840 --> 0:29:58.280
<v Speaker 1>could detect whenever your foot made impact with the ground,

0:29:58.360 --> 0:30:01.720
<v Speaker 1>and it acted as a step counter, so you could

0:30:01.880 --> 0:30:04.720
<v Speaker 1>use it on a run and you could do your run,

0:30:04.800 --> 0:30:06.760
<v Speaker 1>and then after you were done running, you would have

0:30:06.800 --> 0:30:09.120
<v Speaker 1>to go back home and you would have to use

0:30:09.160 --> 0:30:12.640
<v Speaker 1>a cable to hook the gadget up to your computer

0:30:12.880 --> 0:30:15.680
<v Speaker 1>and pull the data off of the device so that

0:30:15.760 --> 0:30:18.920
<v Speaker 1>you could look at it through the software running on

0:30:18.960 --> 0:30:21.840
<v Speaker 1>your computer. That would give you a visualization of the data,

0:30:21.960 --> 0:30:24.440
<v Speaker 1>and then you could see how far you ran and

0:30:24.440 --> 0:30:27.320
<v Speaker 1>how many calories you burned. It's not quite as easy

0:30:27.360 --> 0:30:30.120
<v Speaker 1>as connecting everything via Bluetooth, which is typically how it

0:30:30.160 --> 0:30:32.480
<v Speaker 1>happens today, but it was a hint of what would

0:30:32.520 --> 0:30:37.840
<v Speaker 1>follow almost thirty years later. Other emerging technologies that began

0:30:37.920 --> 0:30:40.120
<v Speaker 1>to pop up at Comdex in the early to mid

0:30:40.200 --> 0:30:45.240
<v Speaker 1>nineteen eighties included voice recognition, optical discs so CDs, and

0:30:45.280 --> 0:30:48.320
<v Speaker 1>things like that, three and a half inch floppy disks

0:30:48.400 --> 0:30:52.840
<v Speaker 1>and others, and we began to see the interesting seesaw

0:30:52.960 --> 0:30:57.000
<v Speaker 1>relationship between hardware and software. So if you read articles

0:30:57.040 --> 0:30:59.840
<v Speaker 1>from the nineteen eighties about Condex, you'll see journalists point

0:30:59.880 --> 0:31:03.040
<v Speaker 1>out out that these incredibly powerful computers that were hitting

0:31:03.520 --> 0:31:07.840
<v Speaker 1>the market didn't have any software that took advantage of

0:31:07.840 --> 0:31:10.960
<v Speaker 1>all that raw power. They'd say like, well, yeah, you

0:31:10.960 --> 0:31:13.959
<v Speaker 1>can get this super fast machine, but what good is that.

0:31:14.080 --> 0:31:16.800
<v Speaker 1>I mean, there's no software that really takes advantage of

0:31:16.840 --> 0:31:19.360
<v Speaker 1>this machine's capabilities. We're never going to see that happen.

0:31:19.400 --> 0:31:23.480
<v Speaker 1>I mean, it'll run existing software faster, so if you've

0:31:23.480 --> 0:31:25.600
<v Speaker 1>got like a huge spreadsheet, it won't take as long

0:31:25.680 --> 0:31:28.400
<v Speaker 1>for it to load. But other than that, I mean,

0:31:28.640 --> 0:31:32.760
<v Speaker 1>why would you need all that power? Now, it's kind

0:31:32.800 --> 0:31:36.080
<v Speaker 1>of funny to think that a three eighty six processor

0:31:36.160 --> 0:31:38.400
<v Speaker 1>computer from the mid nineteen eighties was thought to be

0:31:38.440 --> 0:31:41.920
<v Speaker 1>more powerful than anything you would ever need, because a

0:31:41.960 --> 0:31:45.200
<v Speaker 1>three eighty six computer compared to today's smartphones would see

0:31:45.680 --> 0:31:50.360
<v Speaker 1>clunky and slow in comparison. Since those days, we've seen

0:31:50.440 --> 0:31:53.000
<v Speaker 1>a lot more tech journalists agree to what is called

0:31:53.160 --> 0:31:57.200
<v Speaker 1>Worth's law, which is named after Nicholas Worth, who observed

0:31:57.200 --> 0:32:01.000
<v Speaker 1>that software speed was decreasing at a rate faster than

0:32:01.120 --> 0:32:05.160
<v Speaker 1>hardware speed was increasing. So, in other words, software is

0:32:05.200 --> 0:32:10.160
<v Speaker 1>getting bloated and requires more resources to run faster than

0:32:10.160 --> 0:32:14.800
<v Speaker 1>we're seeing improvements in those resources. So year over year,

0:32:15.040 --> 0:32:18.840
<v Speaker 1>it feels like computers are going slower rather than faster.

0:32:19.440 --> 0:32:21.959
<v Speaker 1>It's not that the computers are less powerful than they

0:32:21.960 --> 0:32:25.560
<v Speaker 1>were before. It's that the software requires more power than

0:32:25.680 --> 0:32:31.120
<v Speaker 1>the previous generations software. And that's because we get bloat

0:32:31.680 --> 0:32:34.720
<v Speaker 1>software bloat over the course of many versions of the

0:32:34.720 --> 0:32:39.720
<v Speaker 1>same program. So take take a word processor program. Well,

0:32:39.760 --> 0:32:44.760
<v Speaker 1>every successive version of that word processor program is likely

0:32:44.840 --> 0:32:49.160
<v Speaker 1>to be larger and more resource hungry than the version

0:32:49.240 --> 0:32:53.360
<v Speaker 1>before because a company has to start including more and

0:32:53.400 --> 0:32:57.240
<v Speaker 1>more features to convince you to upgrade to buy the

0:32:57.280 --> 0:33:00.680
<v Speaker 1>newest version. Otherwise, you would just buy one version and

0:33:00.720 --> 0:33:03.520
<v Speaker 1>you'd stick with it until, you know, until it just

0:33:03.720 --> 0:33:06.520
<v Speaker 1>literally could not measure up to what you needed it

0:33:06.560 --> 0:33:08.680
<v Speaker 1>to do. I mean, why would I need to buy

0:33:08.760 --> 0:33:11.520
<v Speaker 1>a new word processor program if I've got one that

0:33:11.560 --> 0:33:15.120
<v Speaker 1>works just fine. So to convince me to buy a

0:33:15.120 --> 0:33:18.240
<v Speaker 1>new one. Companies are going to add more and more features. Well.

0:33:18.280 --> 0:33:22.960
<v Speaker 1>As software gets more complex, it becomes less efficient and

0:33:23.040 --> 0:33:29.240
<v Speaker 1>therefore it requires more power to run. And even to

0:33:29.280 --> 0:33:32.200
<v Speaker 1>this day, there's still a temptation to declare a machine

0:33:32.200 --> 0:33:36.440
<v Speaker 1>that has a screaming fast processor and cavernous storage capacity

0:33:36.440 --> 0:33:38.800
<v Speaker 1>as being more than what you are ever going to need.

0:33:39.000 --> 0:33:42.120
<v Speaker 1>But the more seasoned computer users among us know that

0:33:42.480 --> 0:33:46.520
<v Speaker 1>eventually software is going to use up and maybe even

0:33:46.560 --> 0:33:52.360
<v Speaker 1>exceed that hardware's capabilities. So if you build it, the

0:33:52.440 --> 0:33:55.440
<v Speaker 1>software will fill it. It's kind of like if you

0:33:55.440 --> 0:33:59.240
<v Speaker 1>build it, they will come. Now. The show in Vegas

0:33:59.280 --> 0:34:02.640
<v Speaker 1>in nineteen eighty was just one of seven. The other

0:34:02.720 --> 0:34:07.680
<v Speaker 1>six shows happened in Tokyo, Los Angeles, Atlanta, Amsterdam, Nice,

0:34:07.720 --> 0:34:11.440
<v Speaker 1>and Sydney. And the show in nineteen eighty six in

0:34:11.520 --> 0:34:16.440
<v Speaker 1>Vegas lasted five days. That was the longest conference up

0:34:16.440 --> 0:34:18.960
<v Speaker 1>to that point. So things were still on the rise.

0:34:19.040 --> 0:34:21.640
<v Speaker 1>Everything was still growing every year. More money was being

0:34:21.680 --> 0:34:24.239
<v Speaker 1>poured into the show, and each show meant that there

0:34:24.280 --> 0:34:27.279
<v Speaker 1>was more square footage to lease to companies, and the

0:34:27.360 --> 0:34:30.600
<v Speaker 1>organizers were making some serious bank in those days. Meanwhile,

0:34:30.920 --> 0:34:33.680
<v Speaker 1>exhibitors were enjoying the benefits of connecting with customers and

0:34:33.680 --> 0:34:35.680
<v Speaker 1>getting an eye on what the competition was up to,

0:34:36.360 --> 0:34:38.520
<v Speaker 1>and a lot of ideas were launched at Comdex, not

0:34:38.600 --> 0:34:41.120
<v Speaker 1>all of them successfully. There were plenty of examples of

0:34:41.120 --> 0:34:46.040
<v Speaker 1>products that never went anywhere, and vaporware became a common word. Vaporware,

0:34:46.080 --> 0:34:48.120
<v Speaker 1>by the way, is when you announce a product that

0:34:48.200 --> 0:34:52.200
<v Speaker 1>never actually comes to market. It just remains vapor. It's

0:34:52.239 --> 0:34:58.160
<v Speaker 1>the kaiser SoSE of the technological world. Now, some Comdex

0:34:58.320 --> 0:35:02.279
<v Speaker 1>shows also became vapor aware. In nineteen eighty seven, and

0:35:02.360 --> 0:35:06.240
<v Speaker 1>in nineteen eighty eight, the planned Comdex event in Tokyo

0:35:06.440 --> 0:35:10.720
<v Speaker 1>was postponed, essentially canceled. It never really happened. The nineteen

0:35:10.840 --> 0:35:14.520
<v Speaker 1>ninety one event for Paris was canceled outright now, things

0:35:14.520 --> 0:35:17.120
<v Speaker 1>were not dire, not by a long shot, but there

0:35:17.160 --> 0:35:19.799
<v Speaker 1>were some growing pains as the organizers kept trying to

0:35:20.280 --> 0:35:23.440
<v Speaker 1>increase the show's reach. Sometimes they did it faster than

0:35:23.480 --> 0:35:27.240
<v Speaker 1>they could actually support, and typically the reason these shows

0:35:27.239 --> 0:35:31.360
<v Speaker 1>would get canceled is because they weren't. The show organizers

0:35:31.400 --> 0:35:34.759
<v Speaker 1>weren't able to sell out enough space on the show

0:35:34.840 --> 0:35:39.120
<v Speaker 1>floor to justify holding the trade show, so they couldn't

0:35:39.160 --> 0:35:41.480
<v Speaker 1>get enough vendors to agree to come to a show,

0:35:42.640 --> 0:35:45.960
<v Speaker 1>they'd postpone it or cancel it rather than lose money

0:35:46.040 --> 0:35:50.000
<v Speaker 1>on throwing a show with a small number of exhibitors.

0:35:50.760 --> 0:35:54.920
<v Speaker 1>By the late nineteen eighties, Comdex was looking to grow

0:35:55.040 --> 0:35:58.440
<v Speaker 1>some more, so it changed its attendance policy and started

0:35:58.480 --> 0:36:01.200
<v Speaker 1>to sell it admission to the general public. So for

0:36:01.239 --> 0:36:04.640
<v Speaker 1>the first time, people unaffiliated with the industry or people

0:36:04.680 --> 0:36:07.000
<v Speaker 1>who were not in the media could actually come to

0:36:07.040 --> 0:36:12.480
<v Speaker 1>the show, and no big surprise here, Attendance numbers exploded

0:36:12.600 --> 0:36:16.279
<v Speaker 1>as a result. Now, this was not necessarily welcomed by

0:36:16.320 --> 0:36:19.680
<v Speaker 1>all the other attendees. Some people were complaining that it

0:36:19.719 --> 0:36:22.080
<v Speaker 1>was becoming too difficult to navigate the floor because it

0:36:22.120 --> 0:36:23.680
<v Speaker 1>was just there were just too many people. There are

0:36:23.719 --> 0:36:26.359
<v Speaker 1>too many bodies in the way. And other people were

0:36:26.360 --> 0:36:29.279
<v Speaker 1>worried that the show would turn into an enormous marketplace

0:36:29.719 --> 0:36:33.480
<v Speaker 1>with the general public purchasing products directly from manufacturers rather

0:36:33.520 --> 0:36:38.320
<v Speaker 1>than retailers. You know, like, why bother packing this device

0:36:38.400 --> 0:36:40.759
<v Speaker 1>back up and shipping it back to your headquarters. I'll

0:36:40.760 --> 0:36:43.120
<v Speaker 1>just buy it off of you right here. Even though

0:36:43.160 --> 0:36:47.160
<v Speaker 1>it's not scheduled to launch for another three months. You

0:36:47.280 --> 0:36:49.440
<v Speaker 1>also heard a lot of people say the show was

0:36:49.480 --> 0:36:51.920
<v Speaker 1>starting to lose its focus. It was it was starting

0:36:51.960 --> 0:36:56.279
<v Speaker 1>to incorporate too many things outside of the core computer

0:36:56.440 --> 0:37:00.239
<v Speaker 1>and computer peripheral industry, and as a result, there were

0:37:00.239 --> 0:37:02.239
<v Speaker 1>a lot of people worried that the show was starting

0:37:02.280 --> 0:37:07.120
<v Speaker 1>to spiral out of control. Now, the early nineteen nineties

0:37:07.440 --> 0:37:10.600
<v Speaker 1>saw the rise of a new, very important player in

0:37:10.640 --> 0:37:14.000
<v Speaker 1>the computer space, and that is the Internet. While the

0:37:14.040 --> 0:37:16.759
<v Speaker 1>mainstream public was still getting a handle on what the

0:37:16.840 --> 0:37:20.880
<v Speaker 1>Internet was back in the early nineteen nineties, condext began

0:37:20.920 --> 0:37:24.399
<v Speaker 1>to feature more exhibitors promising the information super Highway would

0:37:24.480 --> 0:37:27.880
<v Speaker 1>change everything, and in many ways they were right, though

0:37:28.440 --> 0:37:30.640
<v Speaker 1>not all of their predictions would turn out to be accurate.

0:37:31.520 --> 0:37:33.640
<v Speaker 1>For one thing, in the early nineteen nineties, no one

0:37:33.719 --> 0:37:36.280
<v Speaker 1>really had an idea of how the Internet could become

0:37:36.320 --> 0:37:39.920
<v Speaker 1>a massive tool for commerce. It was more like a

0:37:40.200 --> 0:37:44.280
<v Speaker 1>point of contact for people. So companies might have a website,

0:37:44.280 --> 0:37:47.040
<v Speaker 1>but it was meant to give information about a company

0:37:47.480 --> 0:37:51.560
<v Speaker 1>or to allow a potential customer or an existing customer

0:37:51.600 --> 0:37:54.759
<v Speaker 1>to contact the company. But there wasn't a whole lot

0:37:54.800 --> 0:37:57.759
<v Speaker 1>beyond that in those early days, especially since the World

0:37:57.760 --> 0:38:01.680
<v Speaker 1>Wide Web didn't really debut in until ninety two ninety three,

0:38:02.320 --> 0:38:05.480
<v Speaker 1>So before that you're just talking about stuff like email

0:38:05.760 --> 0:38:09.360
<v Speaker 1>and some other functions that were mainly used in the

0:38:09.400 --> 0:38:13.600
<v Speaker 1>academic world and were just barely getting a foothold in

0:38:13.719 --> 0:38:18.600
<v Speaker 1>the corporate and then public world. Now over the next

0:38:18.640 --> 0:38:21.400
<v Speaker 1>several years, more exhibitors would show off systems designed to

0:38:21.440 --> 0:38:24.800
<v Speaker 1>make accessing the Internet more intuitive and seamless, all the

0:38:24.840 --> 0:38:28.760
<v Speaker 1>way from operating systems to web browsers. In early nineteen

0:38:28.800 --> 0:38:32.640
<v Speaker 1>ninety five, news broke that a suitor to Comdex would

0:38:32.680 --> 0:38:36.279
<v Speaker 1>be taking over the show, and that suitor was a

0:38:36.400 --> 0:38:40.919
<v Speaker 1>Japanese software company called soft Bank. The company made an

0:38:41.000 --> 0:38:44.840
<v Speaker 1>eight hundred million dollars deal with the Interface Group to

0:38:44.920 --> 0:38:49.400
<v Speaker 1>acquire the trade show. Now in nineteen ninety four, soft

0:38:49.440 --> 0:38:54.440
<v Speaker 1>Bank had already purchased a publishing, exposition and conference division

0:38:54.880 --> 0:38:57.799
<v Speaker 1>from the company's Zif Davis. They had tried to buy

0:38:57.880 --> 0:39:00.960
<v Speaker 1>Ziff Davis outright, but Ziff Davis were used and then

0:39:01.160 --> 0:39:05.120
<v Speaker 1>instead settled on buying this division within Ziff Davis. So

0:39:05.160 --> 0:39:08.360
<v Speaker 1>Ziff Davis spins out of division sells it to SoftBank.

0:39:08.760 --> 0:39:13.799
<v Speaker 1>This division was an events planning division for publishing expositions.

0:39:15.280 --> 0:39:19.080
<v Speaker 1>Then soft Bank goes and buys Comdex from the Interface

0:39:19.080 --> 0:39:22.719
<v Speaker 1>Group for eight hundred million dollars. Now, these two purchases

0:39:22.800 --> 0:39:26.160
<v Speaker 1>made SoftBank the largest name in the trade show game,

0:39:26.719 --> 0:39:30.040
<v Speaker 1>and it also gave some prestige to the CEO of SoftBank,

0:39:30.160 --> 0:39:34.080
<v Speaker 1>who is a Masayoshi's son, who was sometimes called the

0:39:34.160 --> 0:39:38.000
<v Speaker 1>Bill Gates of Japan, and his story is really interesting too.

0:39:38.120 --> 0:39:41.759
<v Speaker 1>Sun had overcome poverty and also social stigma to become

0:39:41.800 --> 0:39:44.680
<v Speaker 1>a successful businessman in Japan. He was the son of

0:39:44.719 --> 0:39:48.120
<v Speaker 1>two Korean immigrants, and in Japan at the time, Koreans

0:39:48.120 --> 0:39:50.839
<v Speaker 1>were sometimes the victims of racial prejudice, so his story

0:39:50.920 --> 0:39:53.560
<v Speaker 1>is pretty interesting. Maybe I'll do an episode about him sometime.

0:39:55.760 --> 0:39:59.560
<v Speaker 1>At this point, Comdex was enormous. The nineteen ninety four

0:40:00.400 --> 0:40:04.360
<v Speaker 1>show in Vegas had almost two hundred thousand people in attendance.

0:40:04.400 --> 0:40:08.280
<v Speaker 1>That's a huge jump from that four thousand from nineteen

0:40:08.400 --> 0:40:11.359
<v Speaker 1>seventy nine. Now, keep in mind they also opened up

0:40:11.360 --> 0:40:13.560
<v Speaker 1>the doors to the general public, so part of that

0:40:13.600 --> 0:40:16.560
<v Speaker 1>growth was just from people curious to learn more about

0:40:16.600 --> 0:40:19.040
<v Speaker 1>the latest computers, but they had no connection to the

0:40:19.040 --> 0:40:22.960
<v Speaker 1>industry itself. Now, along with the growth in attendance was

0:40:23.040 --> 0:40:27.200
<v Speaker 1>a growth of complaints among exhibitors. Some companies were protesting

0:40:27.239 --> 0:40:30.680
<v Speaker 1>what they considered to be unfair fees and rental rates.

0:40:31.680 --> 0:40:35.240
<v Speaker 1>But even though they felt that perhaps things were becoming

0:40:35.320 --> 0:40:39.120
<v Speaker 1>a little unfair, most companies also felt that the show

0:40:39.200 --> 0:40:42.680
<v Speaker 1>was too important to skip. They couldn't skip out on it,

0:40:42.800 --> 0:40:45.080
<v Speaker 1>or else they would be left behind by their competitors.

0:40:45.080 --> 0:40:48.680
<v Speaker 1>So they would show up and they would pay. There

0:40:48.680 --> 0:40:51.759
<v Speaker 1>had been talks of launching a competitor show, like a

0:40:51.760 --> 0:40:54.920
<v Speaker 1>bunch of groups saying, you know what, forget this, We're

0:40:54.960 --> 0:40:57.160
<v Speaker 1>gonna go out and make our own trade show, but

0:40:57.400 --> 0:41:02.359
<v Speaker 1>they hadn't really gone far beyond just some big talk. Now,

0:41:02.400 --> 0:41:05.160
<v Speaker 1>in the next section, I'm going to really concentrate on

0:41:06.040 --> 0:41:09.399
<v Speaker 1>how the show got to its largest point and then

0:41:09.440 --> 0:41:12.800
<v Speaker 1>what happened to make it disappear over the next few years.

0:41:12.800 --> 0:41:15.680
<v Speaker 1>But before I get into that, let's take another quick

0:41:15.719 --> 0:41:29.000
<v Speaker 1>break to thank our sponsor. All Right, So it's nineteen

0:41:29.080 --> 0:41:33.840
<v Speaker 1>ninety seven. Comdex hits its peak, It gets the largest

0:41:33.920 --> 0:41:38.000
<v Speaker 1>it will ever get. In nineteen ninety seven, the number

0:41:38.000 --> 0:41:42.240
<v Speaker 1>of exhibitors was more than twenty four hundred and eighty

0:41:42.840 --> 0:41:45.560
<v Speaker 1>and they were taking up one point thirty five million

0:41:45.680 --> 0:41:48.120
<v Speaker 1>square feet of space on the show floor in the

0:41:48.120 --> 0:41:52.520
<v Speaker 1>primary Vegas show of the year, the number of attendees

0:41:52.600 --> 0:41:56.360
<v Speaker 1>was about two hundred and forty thousand. I mean a

0:41:56.560 --> 0:41:59.240
<v Speaker 1>huge number of people, like a quarter of a million

0:41:59.280 --> 0:42:04.080
<v Speaker 1>people almost at nineteen ninety seven Comdex Las Vegas. This

0:42:04.239 --> 0:42:06.440
<v Speaker 1>was a monster of a show, but it also marked

0:42:06.440 --> 0:42:11.960
<v Speaker 1>the beginning of the decline of Condex. Exhibitors were complaining

0:42:12.120 --> 0:42:16.480
<v Speaker 1>even more about predatory practices of Comdex staffers, pressuring companies

0:42:16.480 --> 0:42:19.239
<v Speaker 1>to invest in larger booths year over year. They were saying, well,

0:42:20.440 --> 0:42:23.000
<v Speaker 1>we want to be part of the show, but every

0:42:23.040 --> 0:42:26.640
<v Speaker 1>year we're making the arrangements. Everyone's pressuring us to make

0:42:26.680 --> 0:42:30.440
<v Speaker 1>our booth bigger than the year before, which means we

0:42:30.520 --> 0:42:32.719
<v Speaker 1>have to spend more money in order to be part

0:42:32.800 --> 0:42:36.360
<v Speaker 1>of this show. And it's getting ridiculous. It got so

0:42:36.520 --> 0:42:39.400
<v Speaker 1>ridiculous for some companies that began to drop out, including

0:42:39.440 --> 0:42:45.440
<v Speaker 1>big names. IBM withdrew from Comdex because of these practices,

0:42:46.120 --> 0:42:49.280
<v Speaker 1>and according to a CNN Money report from two thousand

0:42:49.320 --> 0:42:53.960
<v Speaker 1>and three, Condex became a quote magnet for dumb money

0:42:54.239 --> 0:42:57.359
<v Speaker 1>end quote. Now what they meant by that is that

0:42:57.960 --> 0:43:02.000
<v Speaker 1>if you participated in Comdex year over year, that was

0:43:02.080 --> 0:43:05.440
<v Speaker 1>just a recipe of diminishing returns. You were going to

0:43:05.480 --> 0:43:08.600
<v Speaker 1>see fewer and fewer benefits of being part of the show,

0:43:08.640 --> 0:43:12.080
<v Speaker 1>and ultimately it would become a drain on resources, meaning

0:43:12.280 --> 0:43:15.720
<v Speaker 1>you're losing more money attending the show than you're making

0:43:15.800 --> 0:43:19.960
<v Speaker 1>out of business because of the show. So more exhibitors

0:43:20.000 --> 0:43:23.680
<v Speaker 1>were starting to drop out following nineteen ninety seven. They

0:43:23.680 --> 0:43:28.279
<v Speaker 1>were saying, well, I'm spending money, but I don't see

0:43:28.280 --> 0:43:31.919
<v Speaker 1>the return on investment. This is like putting a big

0:43:31.960 --> 0:43:35.040
<v Speaker 1>time commercial out on a channel that no one is watching.

0:43:35.560 --> 0:43:39.280
<v Speaker 1>What's the point now? Behind the scenes, in a series

0:43:39.320 --> 0:43:44.120
<v Speaker 1>of moves so complicated, I don't even understand them, SoftBank

0:43:44.320 --> 0:43:48.960
<v Speaker 1>reorganized its divisions and departments. So it took the division

0:43:49.239 --> 0:43:53.640
<v Speaker 1>that owned Condex and that publishing conference I talked about before.

0:43:53.800 --> 0:43:57.239
<v Speaker 1>It was essentially known as ZD Events at the time,

0:43:57.719 --> 0:44:02.080
<v Speaker 1>and transformed this into a new and a publicly traded

0:44:02.360 --> 0:44:07.359
<v Speaker 1>entity called Key three Media. That's key the numeral three

0:44:07.960 --> 0:44:10.920
<v Speaker 1>and media all is one word. And this was a

0:44:10.960 --> 0:44:15.160
<v Speaker 1>holding company. It was just existed to hold these assets.

0:44:14.960 --> 0:44:19.360
<v Speaker 1>That's all it did. Now SoftBank held about half of

0:44:19.400 --> 0:44:22.879
<v Speaker 1>the ownership of Key three Media, but eventually it would

0:44:22.960 --> 0:44:27.800
<v Speaker 1>spin it off completely. Now that happened after SoftBank tried

0:44:27.840 --> 0:44:31.600
<v Speaker 1>to auction off the events division. So why was it

0:44:31.640 --> 0:44:34.680
<v Speaker 1>trying to sell something the company had only purchased a

0:44:34.719 --> 0:44:39.240
<v Speaker 1>couple of years before. Perhaps organizing and running the events

0:44:39.320 --> 0:44:42.440
<v Speaker 1>was too far outside the wheelhouse of the software corporation.

0:44:42.920 --> 0:44:46.560
<v Speaker 1>The acquisition of Condex and Ziff Davis's publishing conference didn't

0:44:46.600 --> 0:44:49.839
<v Speaker 1>necessarily include the people with the knowledge and experience of

0:44:49.960 --> 0:44:54.239
<v Speaker 1>organizing those events. At any rate, the auction did not

0:44:54.400 --> 0:44:58.359
<v Speaker 1>result in any satisfactory offers. Apparently, the largest offer on

0:44:58.400 --> 0:45:01.359
<v Speaker 1>the table was for six hundred forty million dollars, which

0:45:01.360 --> 0:45:04.200
<v Speaker 1>is way less than the eight hundred million soft Bank

0:45:04.239 --> 0:45:07.359
<v Speaker 1>paid for Comdex alone, never mind the Ziff Davis deal.

0:45:08.040 --> 0:45:11.600
<v Speaker 1>So Key three Media would eventually become an independent spinoff

0:45:11.920 --> 0:45:15.320
<v Speaker 1>and the sole owner of Comdex. Now. The head of

0:45:15.400 --> 0:45:19.360
<v Speaker 1>Key three Media was a guy named Fred Rosen, and

0:45:19.520 --> 0:45:23.279
<v Speaker 1>Rosen had made a fortune growing and then selling Ticketmaster

0:45:24.400 --> 0:45:30.360
<v Speaker 1>Boom Ticketmaster. That's my own personal bias coming through. I

0:45:30.400 --> 0:45:33.320
<v Speaker 1>have an issue with Ticketmaster. I have many issues with Ticketmaster.

0:45:34.760 --> 0:45:36.520
<v Speaker 1>I should do an episode about them, but it will

0:45:36.520 --> 0:45:40.040
<v Speaker 1>be the most unbiased, unforgiving episode of tech stuff. Ever,

0:45:40.120 --> 0:45:42.400
<v Speaker 1>so maybe I should just keep a trap shut anyway.

0:45:42.520 --> 0:45:45.319
<v Speaker 1>Rosen reportedly ran Key three as if it were a

0:45:45.360 --> 0:45:49.680
<v Speaker 1>massive corporation rather than an events production company. He moved

0:45:49.680 --> 0:45:52.319
<v Speaker 1>the headquarters to an expensive part of Los Angeles, not

0:45:52.440 --> 0:45:55.440
<v Speaker 1>too far from his own mansion, and he would end

0:45:55.520 --> 0:45:58.680
<v Speaker 1>up taking company trips on a private jet across the world.

0:45:58.719 --> 0:46:01.759
<v Speaker 1>His salary was one and a half million dollars in

0:46:01.800 --> 0:46:04.640
<v Speaker 1>two thousand and one. That's a big salary for a CEO,

0:46:04.760 --> 0:46:08.319
<v Speaker 1>especially considering most CEOs get the majority of their compensation

0:46:08.440 --> 0:46:12.080
<v Speaker 1>and benefits as opposed to a direct salary. Million and

0:46:12.120 --> 0:46:14.120
<v Speaker 1>a half in two thousand and one is no chump change.

0:46:14.800 --> 0:46:19.600
<v Speaker 1>Former employees said that his managerial style was incredibly confrontational

0:46:19.640 --> 0:46:22.080
<v Speaker 1>and off putting, so much so that he was driving

0:46:22.160 --> 0:46:24.719
<v Speaker 1>away staffers who had been working in the trade show

0:46:24.719 --> 0:46:28.399
<v Speaker 1>industry for decades, which meant that, as a result, Key

0:46:28.480 --> 0:46:33.000
<v Speaker 1>three was depleting its company's talent pool. You had fewer

0:46:33.040 --> 0:46:37.920
<v Speaker 1>and fewer people around who knew how to handle trade shows,

0:46:38.480 --> 0:46:44.080
<v Speaker 1>so it was a mess, to put it lightly. Now,

0:46:44.280 --> 0:46:46.680
<v Speaker 1>this takes us to nineteen ninety eight, and this was

0:46:46.719 --> 0:46:49.760
<v Speaker 1>the year that featured that infamous blue screen of death.

0:46:49.960 --> 0:46:53.080
<v Speaker 1>During a demonstration of an early build of Windows ninety eight.

0:46:54.160 --> 0:46:57.480
<v Speaker 1>You heard our listener Alex refer to this earlier. So

0:46:57.520 --> 0:47:02.000
<v Speaker 1>what happened? Well, Bill Gates and Chris Capocella were on

0:47:02.200 --> 0:47:06.520
<v Speaker 1>stage during the keynote event to talk about Windows ninety eight,

0:47:06.560 --> 0:47:09.440
<v Speaker 1>which had not yet launched. It was still in development,

0:47:09.560 --> 0:47:13.520
<v Speaker 1>it had actually been delayed, and Capaseella was trying to

0:47:13.560 --> 0:47:17.560
<v Speaker 1>show how Windows ninety eight could download drivers. Drivers are

0:47:17.560 --> 0:47:20.759
<v Speaker 1>these components that are needed for software and hardware to

0:47:20.800 --> 0:47:24.800
<v Speaker 1>work with the operating system, and he was explaining how

0:47:24.840 --> 0:47:27.920
<v Speaker 1>seamless this operation was when the computer crashed and went

0:47:27.960 --> 0:47:31.239
<v Speaker 1>to the blue screen of death, at which point Bill

0:47:31.280 --> 0:47:35.440
<v Speaker 1>Gates started chuckling and Caposeella was like doing a little

0:47:35.440 --> 0:47:37.560
<v Speaker 1>bit of a shuffle. He was very quickly trying to

0:47:37.640 --> 0:47:40.759
<v Speaker 1>switch away from the monitor screen and it could have

0:47:40.760 --> 0:47:44.560
<v Speaker 1>been an embarrassing disaster, but I think they actually handled

0:47:44.560 --> 0:47:48.720
<v Speaker 1>the problem really well with humor. So the audience started laughing,

0:47:48.840 --> 0:47:51.919
<v Speaker 1>and Capaseella, who was responding to the audience's laughter at

0:47:51.960 --> 0:47:55.759
<v Speaker 1>the blue screen of death, said moving right along in

0:47:55.800 --> 0:48:00.200
<v Speaker 1>a very self deprecating way, like he wasn't angry. He

0:48:00.600 --> 0:48:05.400
<v Speaker 1>seemed a little chagrined. But not completely thrown off. And

0:48:05.440 --> 0:48:08.400
<v Speaker 1>then Bill Gates said this must be why we're not

0:48:08.440 --> 0:48:14.520
<v Speaker 1>shipping Windows ninety eight yet, to which Capisella said, absolutely, absolutely,

0:48:14.840 --> 0:48:17.040
<v Speaker 1>So it was a moment that reminded everyone that sometimes

0:48:17.120 --> 0:48:20.320
<v Speaker 1>stuff just goes wrong. And I actually like watching this clip.

0:48:20.400 --> 0:48:23.000
<v Speaker 1>I was afraid to watch it. I never watched it

0:48:23.080 --> 0:48:25.719
<v Speaker 1>at the time, And I tend to feel a lot

0:48:25.719 --> 0:48:28.360
<v Speaker 1>of empathy for people who are giving a public presentation

0:48:28.960 --> 0:48:31.759
<v Speaker 1>because there are enormous pressures on you when you are

0:48:31.760 --> 0:48:34.040
<v Speaker 1>giving a live speech in front of a big crowd

0:48:34.040 --> 0:48:37.440
<v Speaker 1>of people. Keep in mind, we're talking condex when the

0:48:38.360 --> 0:48:42.640
<v Speaker 1>attendance is like two hundred thousand plus people. You could

0:48:42.680 --> 0:48:45.640
<v Speaker 1>have thousands of people in that audience all focusing on

0:48:45.680 --> 0:48:49.080
<v Speaker 1>you and something goes wrong. I feel nothing but empathy

0:48:49.320 --> 0:48:51.520
<v Speaker 1>because I've been in those kind of situations at a

0:48:51.600 --> 0:48:54.759
<v Speaker 1>much smaller scale and it feels like torture. But I

0:48:54.880 --> 0:48:58.600
<v Speaker 1>liked watching this clip because it didn't feel awful. It

0:48:58.600 --> 0:49:01.880
<v Speaker 1>felt like they handled this pretty well as it feels

0:49:01.880 --> 0:49:05.520
<v Speaker 1>actually pretty natural. So for one thing, it's not a

0:49:05.520 --> 0:49:08.920
<v Speaker 1>presentation that fools you into thinking a product as completely flawless.

0:49:09.120 --> 0:49:13.200
<v Speaker 1>If you've ever been to any product demonstration where it's

0:49:13.239 --> 0:49:18.120
<v Speaker 1>clear everything has been pre recorded and rehearsed so that

0:49:18.320 --> 0:49:22.640
<v Speaker 1>nothing goes wrong. It doesn't feel genuine, and you might

0:49:22.680 --> 0:49:24.560
<v Speaker 1>even feel when you get your hands on the real

0:49:24.680 --> 0:49:28.160
<v Speaker 1>thing that you were given a misrepresentation of what it

0:49:28.239 --> 0:49:31.520
<v Speaker 1>was all about. Seeing something kind of fail and people

0:49:31.560 --> 0:49:34.719
<v Speaker 1>acknowledge it and move on was a little refreshing. So

0:49:34.800 --> 0:49:37.479
<v Speaker 1>it's just a kind of a funny moment, and something

0:49:37.560 --> 0:49:42.040
<v Speaker 1>that Microsoft presentations frequently had, that is funny moments, not failures.

0:49:42.360 --> 0:49:44.319
<v Speaker 1>And some of those funny moments were intentional, and some

0:49:44.360 --> 0:49:50.400
<v Speaker 1>of them were not intentional. Developers, Developers, Developers, Developers. Nineteen

0:49:50.480 --> 0:49:53.000
<v Speaker 1>ninety eight was also the first year to see a

0:49:53.040 --> 0:49:57.280
<v Speaker 1>major decline in attendance. So I said two hundred thousand,

0:49:57.320 --> 0:49:59.480
<v Speaker 1>but actually it was fewer than that. At that point,

0:49:59.520 --> 0:50:01.520
<v Speaker 1>this was the big beginning of the end for Comdex,

0:50:01.600 --> 0:50:03.440
<v Speaker 1>though at the time no one could see that. It

0:50:03.520 --> 0:50:05.680
<v Speaker 1>did just appear to be a blip in the growth,

0:50:06.239 --> 0:50:08.800
<v Speaker 1>and the following year saw another dip, and the number

0:50:08.800 --> 0:50:12.000
<v Speaker 1>of exhibitors in two thousand, or in nineteen ninety nine

0:50:12.120 --> 0:50:15.279
<v Speaker 1>rather was a one nine hundred and eleven, so more

0:50:15.320 --> 0:50:19.279
<v Speaker 1>than twenty four hundred in ninety seven. In ninety nine one,

0:50:19.719 --> 0:50:22.440
<v Speaker 1>nine hundred eleven, we start seeing fewer exhibitors showing up.

0:50:22.480 --> 0:50:27.480
<v Speaker 1>More people are irritated with the way Comdex is running things,

0:50:27.640 --> 0:50:30.400
<v Speaker 1>or rather the way Key three Media is running things,

0:50:30.800 --> 0:50:33.120
<v Speaker 1>and are not coming back. Now. There was a little

0:50:33.120 --> 0:50:35.160
<v Speaker 1>bit of a rally in two thousand, a few more

0:50:35.200 --> 0:50:38.480
<v Speaker 1>exhibitors signed up, mostly new companies, but that was not

0:50:38.640 --> 0:50:43.880
<v Speaker 1>to last. Also in nineteen ninety nine, Comdex organizers shook

0:50:43.920 --> 0:50:48.040
<v Speaker 1>things up by changing the requirements for mass media, and

0:50:48.280 --> 0:50:50.960
<v Speaker 1>a lot of major outlets that had been covering Condex

0:50:51.000 --> 0:50:55.120
<v Speaker 1>since the beginning found themselves turned away, and that really

0:50:55.280 --> 0:50:58.720
<v Speaker 1>shook things up. I mean, you had big, big names

0:50:58.760 --> 0:51:01.040
<v Speaker 1>in mass media total that they were not going to

0:51:01.080 --> 0:51:04.560
<v Speaker 1>be allowed to attend Comdex, and that did not help

0:51:04.640 --> 0:51:07.920
<v Speaker 1>the organization at all. I mean, making sure that you

0:51:09.880 --> 0:51:13.320
<v Speaker 1>alienate media is a good way to have some pretty

0:51:13.400 --> 0:51:18.160
<v Speaker 1>negative coverage about your organization. And in two thousand and

0:51:18.200 --> 0:51:21.880
<v Speaker 1>two thousand and one, there was another problem. This was

0:51:22.000 --> 0:51:24.520
<v Speaker 1>outside of Comdex. This was a huge problem that had

0:51:24.600 --> 0:51:29.760
<v Speaker 1>global implications, and I'm talking about the dot com bubble burst.

0:51:30.440 --> 0:51:33.520
<v Speaker 1>So the dot com bubble, that's when you had all

0:51:33.640 --> 0:51:38.719
<v Speaker 1>these web based companies popping up getting huge amounts of

0:51:38.920 --> 0:51:42.600
<v Speaker 1>investment capital, whether it was private investment or the company

0:51:42.600 --> 0:51:45.920
<v Speaker 1>had gone public very early, the value of the company

0:51:45.960 --> 0:51:49.239
<v Speaker 1>was inflated beyond what it could actually do, and then

0:51:49.360 --> 0:51:53.799
<v Speaker 1>ultimately many of these companies failed to show any real

0:51:53.920 --> 0:51:58.680
<v Speaker 1>value and the bubble, this investment bubble burst. Dozens of

0:51:58.800 --> 0:52:02.319
<v Speaker 1>companies went under, and companies in the computer industry in

0:52:02.360 --> 0:52:06.120
<v Speaker 1>general suffered, even if they weren't directly tied to dot com,

0:52:06.120 --> 0:52:08.719
<v Speaker 1>because they were in the computer industry, they were hit

0:52:08.760 --> 0:52:11.440
<v Speaker 1>pretty hard because there was a ripple effect that came

0:52:11.520 --> 0:52:14.200
<v Speaker 1>outward from the dot com companies to all the other

0:52:14.239 --> 0:52:17.440
<v Speaker 1>computer companies that were, you know, kind of in that

0:52:17.480 --> 0:52:21.319
<v Speaker 1>same pool, even though they weren't necessarily themselves a dot

0:52:21.360 --> 0:52:25.000
<v Speaker 1>com company. Well, that meant that that ripple effect continued

0:52:25.360 --> 0:52:31.960
<v Speaker 1>to hit comdex. And another event also ended up really

0:52:32.080 --> 0:52:35.040
<v Speaker 1>setting comdex back, and that was the terrorist attack on

0:52:35.080 --> 0:52:37.600
<v Speaker 1>September eleventh, two thousand and one in the United States

0:52:38.280 --> 0:52:42.080
<v Speaker 1>that affected trade shows. Because it ended up affecting international travel.

0:52:42.160 --> 0:52:46.440
<v Speaker 1>It scaled back international travel to a huge degree in

0:52:46.480 --> 0:52:49.600
<v Speaker 1>the wake of those attacks, completely understandably. I mean, there's

0:52:50.360 --> 0:52:54.359
<v Speaker 1>there's there's nothing else to say about that, but it

0:52:54.400 --> 0:52:58.120
<v Speaker 1>did affect the trade shows at a time when Comdex

0:52:58.200 --> 0:53:03.239
<v Speaker 1>was already having problems. So the Las Vegas Condex show

0:53:03.239 --> 0:53:05.280
<v Speaker 1>in two thousand and one had one hundred and twenty

0:53:05.320 --> 0:53:08.720
<v Speaker 1>five thousand attendees. That's still a large number of people,

0:53:09.320 --> 0:53:11.280
<v Speaker 1>you know, one hundred and twenty five thousand, but still

0:53:12.400 --> 0:53:15.439
<v Speaker 1>very short of that two hundred forty thousand the show

0:53:15.480 --> 0:53:19.120
<v Speaker 1>had at its peak. In two thousand and two, Key

0:53:19.200 --> 0:53:22.840
<v Speaker 1>three Media was in dire straits and not the band.

0:53:23.600 --> 0:53:26.280
<v Speaker 1>With three days to go before the Las Vegas Trade

0:53:26.320 --> 0:53:30.400
<v Speaker 1>Show opened, the company announced in its quarterly earning statement

0:53:30.520 --> 0:53:34.160
<v Speaker 1>that it might have to enter Chapter eleven bankruptcy protection

0:53:34.719 --> 0:53:37.759
<v Speaker 1>if it could not raise more capital, or sell the

0:53:37.800 --> 0:53:41.440
<v Speaker 1>company off or find a merger partner. Key three Media's

0:53:41.480 --> 0:53:44.640
<v Speaker 1>revenue had plummeted in two thousand and two, so in

0:53:44.640 --> 0:53:47.239
<v Speaker 1>two thousand and one, the third quarter revenues were at

0:53:47.280 --> 0:53:49.919
<v Speaker 1>fifty one and a half million. In two thousand and two,

0:53:50.280 --> 0:53:53.640
<v Speaker 1>third quarter revenues were down to thirty eight point four million.

0:53:53.680 --> 0:53:56.279
<v Speaker 1>That's a big drop over the course of the full year.

0:53:56.600 --> 0:54:00.440
<v Speaker 1>The company had lost nearly three hundred million dollars in

0:54:00.480 --> 0:54:02.759
<v Speaker 1>two thousand and one, it was in the black. It

0:54:02.800 --> 0:54:06.960
<v Speaker 1>had made a profit of fourteen point one million. It's

0:54:06.960 --> 0:54:10.960
<v Speaker 1>a small profit relatively speaking, but the loss of three

0:54:11.080 --> 0:54:14.839
<v Speaker 1>hundred million that's a huge, huge downturn. Things were looking

0:54:14.880 --> 0:54:19.359
<v Speaker 1>pretty awful. On top of that, the company had an

0:54:19.440 --> 0:54:22.400
<v Speaker 1>upcoming interest payment on a debt it owed, and no

0:54:22.440 --> 0:54:25.160
<v Speaker 1>one was really sure if they the company would actually

0:54:25.160 --> 0:54:27.840
<v Speaker 1>be able to sign the check to pay off that

0:54:28.000 --> 0:54:30.680
<v Speaker 1>interest payment, which is why they were looking at the

0:54:30.719 --> 0:54:34.239
<v Speaker 1>possibility of entering Chapter eleven bankruptcy protection. Shares of Key

0:54:34.239 --> 0:54:36.799
<v Speaker 1>three Media were down to a measly one point four

0:54:36.920 --> 0:54:41.200
<v Speaker 1>cents per share. It's pretty ugly, folks now. In February

0:54:41.239 --> 0:54:44.080
<v Speaker 1>two thousand and three, the Key three Media filed for

0:54:44.160 --> 0:54:48.440
<v Speaker 1>Chapter eleven protection. When it finally emerged from Chapter eleven,

0:54:48.680 --> 0:54:52.239
<v Speaker 1>so they were able to get their act together and

0:54:52.360 --> 0:54:57.120
<v Speaker 1>come out of Chapter eleven bankruptcy protection. They also rebranded themselves.

0:54:57.320 --> 0:54:59.680
<v Speaker 1>They were no longer Key three Media. Now they were

0:54:59.760 --> 0:55:04.080
<v Speaker 1>called Media Live, and there was some hope that this

0:55:04.280 --> 0:55:06.960
<v Speaker 1>new brand would be able to recapture the glory days

0:55:06.960 --> 0:55:10.040
<v Speaker 1>of comdexes in the past, but it was not meant

0:55:10.120 --> 0:55:12.760
<v Speaker 1>to be. The two thousand and three show drew only

0:55:12.880 --> 0:55:16.960
<v Speaker 1>fifty thousand attendees. Fifty thousand still a lot of people,

0:55:17.280 --> 0:55:20.680
<v Speaker 1>but not compared to two hundred forty thousand. In two

0:55:20.680 --> 0:55:24.160
<v Speaker 1>thousand and four, In a move that shocked very few people,

0:55:24.400 --> 0:55:28.480
<v Speaker 1>Condex Las Vegas was canceled. The struggles of Media Alive

0:55:28.560 --> 0:55:31.880
<v Speaker 1>were well known. They were pretty public. People knew that

0:55:31.960 --> 0:55:35.520
<v Speaker 1>the company was in trouble. Attendance had dropped significantly over

0:55:35.520 --> 0:55:38.800
<v Speaker 1>the past few years, so many large companies had pulled

0:55:38.800 --> 0:55:43.359
<v Speaker 1>out of the show, expressing their exasperation of dealing with

0:55:43.400 --> 0:55:46.759
<v Speaker 1>the policies and high pressure sales tactics of the organizers.

0:55:47.800 --> 0:55:51.680
<v Speaker 1>There was still some hope along Media Live lines that

0:55:51.840 --> 0:55:53.799
<v Speaker 1>two thousand and five would be different, that they would

0:55:53.800 --> 0:55:55.680
<v Speaker 1>be able to come back in two thousand and five

0:55:55.719 --> 0:55:57.600
<v Speaker 1>and two thousand and four would just be a year off.

0:55:58.640 --> 0:56:01.480
<v Speaker 1>But in two thousand and five, all of the company's

0:56:01.560 --> 0:56:06.920
<v Speaker 1>planned Comdex events were canceled except for one so it

0:56:06.960 --> 0:56:08.840
<v Speaker 1>was supposed to happen in Las Vegas, but it didn't.

0:56:08.960 --> 0:56:11.640
<v Speaker 1>The only Comdex event to happen in that year was

0:56:11.719 --> 0:56:15.240
<v Speaker 1>in Greece in Athens, but all the other ones were canceled.

0:56:16.760 --> 0:56:20.239
<v Speaker 1>Analysts said that the implosion of Comdex came about due

0:56:20.280 --> 0:56:25.800
<v Speaker 1>to a mix of mismanagement, depletion of talent, bad marketing choices,

0:56:26.480 --> 0:56:29.840
<v Speaker 1>and also just that exhibitors weren't willing to play ball anymore.

0:56:30.160 --> 0:56:33.239
<v Speaker 1>So the problem was that they couldn't get enough companies

0:56:33.280 --> 0:56:35.680
<v Speaker 1>to agree to be part of the show. To have

0:56:35.760 --> 0:56:38.840
<v Speaker 1>a show, It's kind of like throwing a huge party

0:56:38.880 --> 0:56:42.640
<v Speaker 1>advertised as a star studded event, but the only celebrities

0:56:42.640 --> 0:56:44.319
<v Speaker 1>who show up are a couple of folks from one

0:56:44.320 --> 0:56:47.800
<v Speaker 1>of the later seasons of MTVS. The Real World doesn't

0:56:47.840 --> 0:56:52.959
<v Speaker 1>really work. You can't really fuel a celebrity party that way.

0:56:53.360 --> 0:56:55.560
<v Speaker 1>No offense to anyone who's ever been on MTV's The

0:56:55.600 --> 0:56:59.880
<v Speaker 1>Real World. It didn't help that shows like the con

0:57:00.000 --> 0:57:03.800
<v Speaker 1>Suomer Electronics Show, now known just as CEES, had become

0:57:03.880 --> 0:57:06.160
<v Speaker 1>more popular. Some of the big names that had been

0:57:06.200 --> 0:57:11.560
<v Speaker 1>regulars at Comdex had withdrawn and now were attending cees instead.

0:57:13.120 --> 0:57:16.800
<v Speaker 1>Comdex would see a bit of a revival, a strange

0:57:17.120 --> 0:57:21.760
<v Speaker 1>revival in twenty ten. So it had gone dead between

0:57:21.760 --> 0:57:24.240
<v Speaker 1>two thousand and four and twenty ten, but in twenty

0:57:24.360 --> 0:57:29.760
<v Speaker 1>ten we saw Comdex Virtual, so instead of a physical

0:57:29.800 --> 0:57:32.680
<v Speaker 1>trade show that you would go and attend, featuring thousands

0:57:32.720 --> 0:57:36.160
<v Speaker 1>of people walking around the convention center. Condex Virtual was

0:57:36.160 --> 0:57:38.800
<v Speaker 1>a website you would go to and it simulated a

0:57:38.800 --> 0:57:41.800
<v Speaker 1>trade show. You could watch keynote speeches, and you could

0:57:41.920 --> 0:57:45.480
<v Speaker 1>virtually visit vendor booths. And it showed up again in

0:57:45.520 --> 0:57:48.680
<v Speaker 1>twenty eleven and one more time in twenty twelve, and

0:57:48.720 --> 0:57:51.840
<v Speaker 1>then it faded away. If you were to go to

0:57:51.880 --> 0:57:55.240
<v Speaker 1>the Condex Virtual website today, you would get an under

0:57:55.280 --> 0:57:58.280
<v Speaker 1>construction page, which seems charmingly out of date if you

0:57:58.320 --> 0:58:03.640
<v Speaker 1>ask me. And that's the story of Condex from its

0:58:03.680 --> 0:58:07.400
<v Speaker 1>birth to its death. Trade shows still exist. Some of

0:58:07.440 --> 0:58:10.520
<v Speaker 1>them are as large or larger than Condex was at

0:58:10.520 --> 0:58:13.240
<v Speaker 1>its height. Others are a bit more modest. And we're

0:58:13.280 --> 0:58:17.000
<v Speaker 1>seeing some companies like Apple and Google concentrate on holding

0:58:17.040 --> 0:58:20.640
<v Speaker 1>their own events rather than abiding by an annual trade

0:58:20.640 --> 0:58:23.360
<v Speaker 1>show schedule. So instead of saying we're going to hold

0:58:23.440 --> 0:58:28.560
<v Speaker 1>off on announcing something until someone else's schedule lines up,

0:58:28.960 --> 0:58:32.120
<v Speaker 1>they say, no, we'll hold our own events, and we don't.

0:58:32.240 --> 0:58:34.960
<v Speaker 1>That way, we don't get lost in the shuffle. And

0:58:35.000 --> 0:58:38.160
<v Speaker 1>that was the story of Condex, a show that originally

0:58:38.160 --> 0:58:42.080
<v Speaker 1>published on March twenty second, twenty seventeen. It's funny because

0:58:42.160 --> 0:58:45.880
<v Speaker 1>other trade shows can certainly join the ranks of Condex

0:58:45.960 --> 0:58:48.840
<v Speaker 1>of shows that used to be important in tech and

0:58:48.880 --> 0:58:53.240
<v Speaker 1>now no longer exist. Arguably E three could be on

0:58:53.320 --> 0:58:57.240
<v Speaker 1>that list because they've had to cancel it a couple

0:58:57.320 --> 0:59:02.880
<v Speaker 1>of times. But as I'm recording these intros and outros, uh,

0:59:03.600 --> 0:59:07.120
<v Speaker 1>the the death knell for E three has not yet rung,

0:59:07.280 --> 0:59:12.640
<v Speaker 1>so maybe it's just mostly dead. It'll come back after,

0:59:13.080 --> 0:59:15.880
<v Speaker 1>you know, Miracle Max gets a gets a whack at it.

0:59:15.920 --> 0:59:18.880
<v Speaker 1>We'll have to wait and see. But Comdex, no, it's

0:59:18.920 --> 0:59:21.400
<v Speaker 1>really most sincerely dead. It's like the wicked Witch of

0:59:21.440 --> 0:59:24.480
<v Speaker 1>the East. I hope all of you are well, and

0:59:24.520 --> 0:59:33.880
<v Speaker 1>I will talk to you again really soon. Tech Stuff

0:59:33.960 --> 0:59:37.880
<v Speaker 1>is an iHeart Radio production. For more podcasts from iHeartRadio,

0:59:38.240 --> 0:59:41.960
<v Speaker 1>visit the iHeartRadio app, Apple Podcasts, or wherever you listen

0:59:42.000 --> 0:59:43.040
<v Speaker 1>to your favorite shows.