DALLAS April 1986 - Willy Studer A.G. and N.V. Philips Gloeilampenfabrieken announced plans last Monday at the National Assn. of Broadcasters convention here to pact in a 50/50 joint venture for the research and development of professional Compact Disc -related professional studio systems.
While no formal agreement has been signed, the two companies say they are both "firmly committed" to the joint effort, which will encom- pass the development of "new professional CD systems, both for playback, and as the technology develops, for recording in the studio directly onto CD," according to Studer Revox America's Bruce Borgerson.
Borgerson says the joint venture came about because of the "complementary nature" of the Swiss and Netherlands -based companies. "Studer is traditionally strong in designing and marketing professional audio products and systems," Borgerson noted, "while Philips' traditional strength has been in the development of basic technologies."
The agreement in principle between the firms will yield a third corporate entity, as yet unnamed, which will be based in an unspecified European location. Borgerson says the new company will initially draw upon the staff and facilities of both Studer and Philips, "so there won't be any new building or new staff hired."
In another aspect of the agreement, Studer Revox America, the U.S. arm of Willy Studer A.G., will begin marketing existing Philips professional Compact Disc products in the U.S. These are the LHH 2000 pro CD player system, and the LHH 0425 CD subcode editor.
Thomas Mintner, Studer Revox America vice president and general manager, said that details regarding the logistics of the actual mar- keting of the Philips products by Studer were "still being worked out," but noted that Studer planned to use its existing pro dealer network to distribute the LHH 2000 CD player system, along with its existing Studer A725 CD players. The subcode editor, Mintner said, will "probably be sold directly by Studer, along with our other professional mastering equipment."
Both parties said that the joint venture will not affect "ongoing independent developments" by both firms in the areas of magnetic tape recording and optical disk mastering systems.