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Like a lot of inventions, it evolved with several people's ideas. The first person credited with thinking of it, was Oberlin Smith in 1878. After visiting Edisons labs in New Jersey. He tried magnetic recording on wire,failed, but wrote a paper on it.
Valdemar Poulson of Denmark, succeeded in 1898, recording on wire. He filed a US patent in 1899 and demonstrated a working model in 1900.
The idea went through several modifications, using DC bias, steel tape and amplifiers, as they came available. Several pioneers in the US and Germany, experimented. Paper tape with an oxide coating was tried in 1928, but the paper kept tearing.
Hermann Bucher of the German company AEG took an interest and with a team, developed the machine further using tapes made by BASF.
Fritz Pfleumer invented a paper tape using a ferric Oxide coating in 1928.
The Magnetophone K1 was debuted at the Berlin radio fair in August 1935.
Tape recording was kept mostly within Germany until after WW2. Radio broadcasts from Germany impressed the allies, as it was indistinguishable from a live broadcast.
After the war various US companies including Ampex, Brush Development Co and Minnesota Mining Manufacturing (3M) devloped better tapes and coatings using plastics as a base.
The first domestic tape recorder was released in 1946, by Brush D.C. called the 'Soundmirror BK401'
Various tape widths, speeds, cassettes and variants and standards were soon developed after.

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