In the early 1970s, using video Laserdisc technology, Philips' researchers started experiments with "audio-only" optical discs, initially with wideband frequency modulation FM and later digitized PCM audio signals. At the end of the 1970s, Philips, Sony, and other companies presented prototypes of digital audio discs.
In 1979 Philips and Sony decided to join forces, setting up a joint task force of engineers whose mission was to design the new digital audio disc. Prominent members of the task force were Kees Immink and Toshitada Doi. After a year of experimentation and discussion, the taskforce produced the "Red Book", the Compact Disc standard. Philips contributed the general manufacturing process, based on the video Laserdisc technology. Philips also contributed the Eight-to-Fourteen Modulation, EFM, which offers both a large playing time and a high resilience against disc handling damage such as scratches and fingerprints; while Sony contributed the error-correction method, CIRC. The Compact Disc Story, told by a former member of the taskforce, gives background information on the many technical decisions made, including the choice of the sampling frequency, playing time, and disc diameter. According to Philips, the Compact Disc was thus "invented collectively by a large group of people working as a team."
The Compact Disc reached the market in late 1982 in Asia and early the following year in other markets. This event is often seen as the "Big Bang" of the digital audio revolution. The new audio disc was enthusiastically received, especially in the early-adopting classical music and audiophile communities and its handling quality received particular praise.
The far larger popular and rock music industries were slower to adopt the new format, especially in the huge consumer markets in Europe and the United States. This "highbrow niche" status of the CD format changed dramatically in May, 1985, when UK rock band Dire Straits released the album Brothers in Arms. One of the first all-digital rock recordings and the first by a major act, Brothers in Arms played to the strengths of the CD by offering more and longer tracks, running ten minutes longer than the album's concurrent LP and cassette releases. It spurred the sale of compact disc players like no other recording before it, helped to drive down the price of players, induced other acts and record labels to release more music on CD and firmly established the format in the mind of the average consumer.
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