Maximal Unviable Products
blog.leanstart.ch
blog.leanstart.ch
One problem from a content standpoint was aligning songs within the fixed time provided by the loop. It was not uncommon for a song to span programs creating a break in the piece and a mechanical thunking sound. Compact cassette allowed more graceful handling of differences in the length of its programs (though not as graceful a handling as the LP format).
On the other hand, Stereo8 had an excellent functional interface. Loading and playing a tape was simpler than the LP which preceded it and the cassettes which followed.
http://en.wikipedia.org/wiki/8-track_tape#Commercial_success
If it wasn't luck, then Philips lost something along the way. In Dutch tech circles, Philips is infamous for continuously making exactly the fault that the RCA made in this article: too much invention, too little market research.