the record industry began in 1889 with some very-small-scale production of professionally recorded wax cylinder records. at first, costly wet-cell-powered, electric-motor-driven machines were needed to play them, and the customer base consisted solely of entrepreneurs with money-making nickel-in-the-slot phonographs in arcades, taverns, and other public places. soon, some affluent individuals who could afford expensive toys were customers, too. by the late 1890s, relatively inexpensive spring-motor-driven phonographs were available and becoming a fixture in middle-class homes. the record industry boomed. at the same time, the berliner gramophone company was marketing the first crude disc records, which were simpler and cheaper to manufacture, less bulky to store, much less fragile, and could play louder than contemporary wax cylinders, although they were of markedly inferior sound quality. their quality was soon greatly improved, and by about 1910 the cylinder was clearly losing this early format war. in 1912, thomas edison, who had previously made only cylinders, entered the disc market with his diamond disc phonograph system, which was incompatible with other makers' disc records and players.