Edison misjudges the market.
As he had with the phonograph, Edison misjudged how the market was to develop. He thought the money was in the kinetograph (from the Greek for “motion recorder”) and the kinetoscope (from the Greek for “motion viewer”); he didn’t think people would want to sit in audiences to see an image on a screen.
The Edison profits came from the sale of machines and prints, not from exhibition to the general public. . . . From the Edison viewpoint, one machine for every viewer was more to be desired than a hundred or more viewers for every machine.