No, its a false market. The companies sold the product below cost to the companies that we rented them from.
The consumer had no choice in what type they could rent.
Thus the competition, Betamax, was destroyed.
There is no such thing as a "false market", a market is where goods or services are offered for sale - that describes the situation perfectly. It was a market.
Companies often sell things at or below cost, they are called "loss leaders". If every market that had loss leaders was a "false market" then no market would exist.