Further developments
Analog magnetic tape recording introduces noise, usually called "hiss", caused by the finite size of the magnetic particles in the tape. There is a direct tradeoff between noise and economics. Signal-to-noise ratio is increased at higher speeds and with wider tracks, decreased at lower speeds and with narrower tracks.Prior to 1963, when Philips introduced the Compact audio cassette, almost all tape recording had used the reel-to-reel (also called "open reel") format. Previous attempts package the tape in a convenient cassette that required no threading met with limited success; the most successful was 8-track cartridge used primarily in automobiles for playback only. The Philips Compact audio cassette added much needed convenience to the tape recording format and a decade or so later had begun to dominate the consumer market, although it was to remain lower in quality to open reel formats.
In the 1970s, advances in solid-state electronics made the design and marketing of more sophisticated analog circuitry economically feasible. This led to a number of attempts to reduce tape hiss through the use of various forms of volume compression and expansion, the most notable and commercially successful being several systems developed by Dolby Laboratories. These systems divided the frequency spectrum into multiple bands and applied volume compression/expansion independently to each band (Engineers now often use the term "compansion" to refer to this process). The Dolby systems were very successful at increasing the effective dynamic range and signal-to-noise ratio of analog audio recording; to all intents and purposes, audible tape hiss could be eliminated. The original Dolby A was only used in professional recording. Successors found use in both professional and consumer formats; Dolby B became almost universal for prerecorded music on compact cassette. Subsequent forms, including Dolby C, (and the short-lived Dolby S) were developed for home use.
In the 1980s, digital recording methods were introduced, and analog tape recording was gradually displaced, although it has not disappeared by any means. (Many professional studios, particularly those catering to big-budget clients, use analog recorders for multitracking and/or mixdown.) Digital audio tape never became important as a consumer recording medium partially because of legal complications arising from piracy fears on the part of the record companies. They had opposed magnetic tape recording when it first became available to consumers, but the technical difficulty of juggling recording levels, overload distortion, and residual tape hiss was sufficiently high that magnetic tape piracy never became an insurmountable commercial problem. With digital methods, copies of recordings could be exact, and piracy might have become a serious commercial problem. Digital tape is still used in professional situations and the DAT variant has found a home in computer data backup applications. Many professional and home recordists now use hard-disk-based systems for recording, burning the final mixes to recordable CDs (CD-R's).