In 1987, Sony introduced the DTC-1000ES, the first Digital Audio Tape (DAT) recorder — a format that recorded digital audio at CD-equivalent quality (and beyond, with sampling rates up to 48kHz) onto a small cassette-like tape. Unlike ordinary cassette, DAT could make exact digital copies of a source rather than a generation-lossy analog dub, which made it hugely appealing to recording studios and serious enthusiasts, even as it stalled in the mainstream consumer market it was originally aimed at. Record labels, worried about perfect digital copying of CDs, lobbied hard against DAT in the US, which didn't help its consumer prospects.
For most home listeners in 1987, the choice was still between CD, cassette, and a shrinking vinyl market — DAT would end up carving out a real niche in professional audio rather than replacing the cassette deck in most living rooms.