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The encyclopedia · Product & Design · Product decision · 1979–1982

The CD won audio by Philips and Sony agreeing to one joint standard in 1979

Philips and Sony settled on a single 120mm, 16-bit, 74-minute Red Book disc, and the world adopted one format.

Philips · Sony · Polygram

the move

In the late 1970s Philips and Sony each had a laser-audio project, and competing formats risked a replay of the cassette/VHS wars.

They signed a 1979 agreement to build one system jointly, then published the 1980 Red Book setting the disc at 120mm, 16-bit, 44.1kHz and about 74 minutes.

The deal was a compromise: Sony pushed the bigger capacity and Philips owned Polygram, one of the largest record distributors, so one format had the content and the hardware on its side.

By cross-licensing the Red Book to other manufacturers, Philips and Sony made adoption a one-format decision for the whole music industry.

why it works

  • One joint standard removed the consumer risk of backing a losing format.
  • The Philips/Sony agreement unified the hardware and the content supply.
  • The Red Book gave every manufacturer the same blueprint to build players and discs.
  • Cross-licensing let the format spread rather than stay proprietary.
the payoffMerge rival formats into one open standardclever

what transfers

When a format war hurts everyone, the winning move is often to settle on one standard and open it rather than fight for a bigger slice.

what came after

The first CD was pressed in August 1982 and CD audio rapidly replaced vinyl and cassette; the Red Book remained the reference for CD audio and later CD-ROM.

references

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same kind of clever