![]() However, increased competition from other companies and continued objections to the huge horn limited Victor’s market. Johnson arranged to have well known opera stars and musicians support his products, which sparked additional sales at an advertising cost of roughly 50% of the company’s total profit. ![]() The phonograph market grew considerably, and due to a creative and well-funded advertising campaign, Victor’s sales progressively increased. Johnson (and his growing staff) made numerous improvements to the phonograph in those early years, including a tapered tone arm, enhanced sound boxes and quieter, more even running spring motors. In addition, the horn was quite prone to being bumped or damaged. Although this system worked quite well, the stark horn tended to dominate the average parlor, and many people felt that this created an unattractive appearance. At the turn of the century, all phonographs used a large external horn to “amplify” the playback sound. Johnson had been active in the phonograph business as a motor supplier for several years earlier, and had learned an immense deal about the emerging home entertainment market. The Victor Talking Machine Company was founded by Eldridge Johnson in 1901, and quickly became a main player in the quickly growing phonograph market.
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