This Philips Compact Disc System folder describes the advantages of the compact disc in the field of industry, trade and consumer. The folder is dated from January 1979, a few months before the worldwide presentation of the Philips Compact Disc System by Joop Sinjou. It was previously owned by Dieter Radecki, former VP of Polygram and commercial director dcc. mr. Radecki donated his entire Philips DCC collection including this folder to the Philips DCC Museum.

The folder looks like an internal document in which it describes all the advantages of the compact disc compared to the LP. However, the origin and purpose of this folder is not 100% certain.

If anyone knows this book and knows its origin and purpose, please let us know!

Enjoy the contents of this beautiful folder!

Philips Compact Disc System folder 1979 Philips Compact Disc System folder 1979 Philips Compact Disc System folder 1979 Philips Compact Disc System folder 1979 Philips Compact Disc System folder 1979 Philips Compact Disc System folder 1979

Philips compact disc system

The reason for the tremendous growth of the record business over the last three decades can be summarised in one word: innovation. Innovation in the field of artists and repertoire, but also, and most important, innovation in the technical field.

From the 78 to the LP; from mono to stereo; the introduction of the 8-track cartridge and the musicassette have all greatly contributed to the dramatic increase of the consumption of prerecorded music over the past 30 years.

Improved quality and more efficiënt production methods for the software; availability of a wide range of playback equipment, from the Highest Fi down to the lowest price bracket, have had their favourable effect. The cartridge and the musicassette opened additional fields in particular of music on the move. The introduction of these new Systems and carriers, as we now realise, has been of vital importance for the record trade. Yet over these 30 years there have been a great many more inventions, interesting ones even, other kinds of cartridges, small-sized single records, that have not caught on. The fact that for each new system software has to be available in broad variety, right from the beginning, when the penetration of the hardware is still very low, poses some considerable marketing problems, which have not always proved surmountable.

For the record industry and for the record trade it is only worthwhile to embark upon a new system, if, because of its excellence, its special capabilities and its economy, additional sales and greater efficiency in manufacturing and distribution can be obtained to such a degree that the burden of having to produce, to stock and to handle an extra carrier for the wide ’ range of existing repertoire will be offset by the extra profits to be expected.

The possible adoption of new Systems by record trade and industry has to be judged with this point of departure in mind.

The latest innovation effort: quadrophony, has, so far, not caught on. This may be because, on second thought, the consumer has on average only two ears, which generally makes it hard for him to enjoy fully and at leisure all possible virtues of quadrophony. However, it is certain that the dispersion of efforts in this field, leading to complexity and diffuseness of the situation, as well as to serious doubts at the trade and consumer end, have had a very detrimental effect on the quadrophony gambit. Quadrophony — who knows — might well have caught on if rigid standardisation and subsequently complete compatibility had been applied.

It is ultimately the consumer who decides — at times indeed on unpredictable grounds — what shall catch on and flourish.

However, it is up to the record industry and the record trade to consider carefully and critically any new opportunity, its potential, its possible consequences, and the costs, before deciding to adopt it. Considering today’s state of the art whereby, with the present LP and the present HiFi Systems, sound can be reproduced hardly differing from the original performance, one may wonder what kind of improvements one can still expect.

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Optical read-out means clean sound life-long

Looking critically at the compact disc System, and sorting out its possible merits, we observe the following System profiIe:

1.

Superb sound quality; reduction of noise to the bare minimum. The system offers the opportunity of digital coding which provides the means to eliminate objectionable phenomena such as ticks and spatters, distortions, wow and flutter.

With the optical read-out system it is possible to bury the information in the plastic material, thereby protecting it against damage from the outside. The information is well protected by a strong layer of lacquer. Therefore the compact disc is not very vulnerable. Because the external surface itself is out of focus, dust, scratches and other irregularities have no significant effect.

The compact disc furthermore is not prone to distortion, static electricity and Stylus wear.

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Constant music for up to an hour

2.

The optical System allows for a very high density of Information — thus for longer, uninterrupted playing time.

The maximum playing time of one hour per record (all on one side) equals the present total maximum playing time of the conventional LP. This longer uninterrupted playing time has definite advantages in recordings of longer works such as operas and symphonies. Programming, therefore, will not pose any (additional) problems..

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Compact equipment at attractive prices

3.

Manufacturing costs of the disc wiII be lower than the manufacturing costs of the present LP.

4.

Costs for the hardware are well within the present HiFi price brackets; therefore the price is within reach of the public, right from the start.

5.

The compactness and lightness of the player make it easier to install in the home. The player is very sturdy and easy to operate.

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One-seventh the size of present LP

6

Last but not least is the compactness of this disc, the size of which is reduced to about one seventh the size of the present LP. The advantages of the quality of the compact disc speak clearly for themselves.

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Lower costs for material and packing

Let’s have a closer look at the far-reaching and favourable consequences of the compactness of the discs and let us do so from the manufacturers’, the trade’s, as well as the consumers’ point of view:

1.

The weight as well as the size of the compact disc will be reduced to about 1/7th of the present LP. Costs of raw materials for discs as well as for the covers are therefore drastically reduced.

This also means much smaller outer packing therefore much lower costs for bulk packaginq It also implies - because of drasrtically reduced weight and size - great savings on all forwarding costs

Let us also look at the small mailer in comparison with the 12-inch one. These drastically reduced costs on packaging and postage will favourably influence the cost of the record mail-order business and the gift business.

With the compact disc another important barrier has been overcome: its size permits direct access to the letter box!

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Lighter and cheaper for mail order

Let us also look at the small mailer in comparison with the 12-inch one. These drastically reduced costs on packaging and postage will favourably influence the cost of the record mail-order business and the gift business.

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Beats the letter-box barrier

With the compact disc another important barrier has been overcome: its size permits direct access to the letter box!

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Compact Disc fits in the cost-consious future

2.

lt seems (too) early to predict exactly the saving in space in the pressing plant and in the stores, or to make any estimates in the saving of energy. It is important, however, to mention that the picking and packing area wi11 be drastically decreased and that the reduced size of the product makes automation of this expensive and time-consuming part of the warehouse process more easily feasible. Looking to the future and realising the ever- increasing shortage of raw materials, energy, space and manual labour, it is obvious that the more these shortages become significant, the more the new compact disc System wi11 fit into the future. Also in respect of the record trade, the compactness of the disc wi11 be of great influence. The compactness wi11 ultimately mean less space necessary to store and display records. This will lead to higher turnover per square foot and may ultimately open the way to small shops, even kiosks, carryina the full repertoire.

Because of the compactness, self-service for LPs as we know it today, will hardly be feasible because of the danger of pilfering. However, other self-selectinq Systems can easily be conceived and applied with at least the same and probably greater effect.

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Wider range in products displays

The size of the product makes it necessary to follow entirely different display systems, as has also been and still is the case with musiccassettes

The opportunities for displaying the compact disc in stores and shops windows seem even better for the traditional LP. There will be room for showing more products, complete series, the top forty, which, in an ordery display in the various categories, will give the consumer an even more surveyable picture than before.

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Space saving at home

The consumer at home will be less cramped when choosing the place for the small and sturdy player than when he has to install the present bulkier record player, which requires more careful handling and positioning. Also he will need less space for his record collection.

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The charm of the miniature helps to sell

An observation which was made quite frequently when we introduced the musicassette was: “Is the consumer willing to pay so much money for such a smail product?”

There is no evidence whatsoever that “the consumer” relates his willingness to spend money for a product to the volume of its physical embodiment. However, there is evidence that in cases in which k smallness” implies handiness, the consumer much prefers the smaller item. Think of lighters and wristwatches, pocket memos, calculating machines, for which smallness and above all flatness governs the (premium) price. This has also to do with the charm of the miniature — a charm which is certainly applicable to the compact disc.

Efforts to make the product look bigger, for instance by enlarging the covers are really unrealistic, damaging the handiness and the charm of the compact disc and thereby the economics of the exercise.

Will the compact disc System replace the present LP? Judging by the present excellent quality of the LP and the superb performance of present HiFi equipment, one could assume that the present qualitative capabilities of our LP system leave hardly anything to be desired. Yet the compact disc system, especially in conjunction with digital recordings, will refine even further the performance quality.

The non-vulnerability and the handiness of the product, and the fact that the compact disc has only advantages in comparison with the present LP system, should, logically speaking, lead in the long run to substituting the present LP configuration. The further upgrading of the quality of recorded sound will help to combat piracy.

During the period of the co-existence of the 12-inch LPs and compact discs, the extra efforts and costs of industry and trade to manufacture, introducé, and sell an additional carrier, will have to be justified by the consumption development that this new system will bring along and by the ultimate economy inherent in the small size of the discs.

It is obvious that the introduction of the new system can only be successful if it is carefully prepared in full collaboration and co-ordination between hardware and software suppliers, in order to solve beforehand any possible “chicken and egg” problems and to ensure the availability of sufficiënt equipment to justify the release of programmes in sufficiënt variety, right from the start.

The availability of sufficiënt programmes will be the most important prerequisite for the consumer in encouraging him to adopt the new system.

It is obvious that there will have to be one and only one world Standard for the audio laser system.

Dispersion of effort with all its detrimental effects, so well-known from other fields of innovation, should be completely avoided.

Philips Compact Disc System folder 1979

The conclusion cannot be escaped that it would be beneficial for alI of the three parties concerned — industry, trade, and consumer— to consider very seriously accepting the fruits that progress has to offer and to welcome the compact disc System as a valuable and profitable innovation.

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