Showing posts sorted by relevance for query Bastiaens. Sort by date Show all posts
Showing posts sorted by relevance for query Bastiaens. Sort by date Show all posts

Thursday, July 26, 2007

My museum of content related artefacts (12)

1992: CD-i

Yes I have still a CD-i player and it still works. In fact I have again two players since last year, but the eldest one (the CD-i 450) is no part of the collection any longer as it was stolen in 1999 and probably sold as a game computer. With the two working players, I still have some 85 CD-i discs of all kinds, from the singer Pavarotti to Jazz, from games to soft porn and from movies to documentaries. I have also a digital collection of the 85 covers of the CD-i discs.

CD-i has been a marketing anomaly, which eventually led to the DVD. I heard about CD-i in 1986. The term was not there yet, but engineers of Philips explaining CD-ROM indicated that they were going to develop another format for television entertainment. In the meantime CD-ROM grew especially as mega book and database carrier, not yet as multimedia carrier. But the rumblings about a multimedia TV entertainment format became stronger by the end of the eighties. By 1988 Philips boss Jan Timmer had enough of the technical dabbling of his Philips engineers and put an old trustee in charge, Mr Gaston Bastiaens to speed up the process. And it worked. By October 1991 Mr Timmer was dancing in a New York discotheque to celebrate the introduction of the CD-i, one year later to be followed by the introduction in Europe (CD-i was a cultural product, so it needs a special handling region wise).

CD-i had problems from the beginning. The format was not the only format competing for market dominance. Microsoft saw the CD-ROM as multimedia carrier, but another standard, 3DO was promoted by amongst others the game developer and distributor Electronic Arts. Not a real threat was the multimedia mini-disc, Electronic Book of Sony. CD-i remained an industrial standard, only supported by Philips and Sony. But this market situation caused a problem for CD-i from the beginning: which were the strong points of its competitors and what market segments should CD-i be in. Philips started its own publishing company and simulated multimedia developers and they developed everything. Once the video module for the player was ready the assortment ranged from the singer Pavarotti to Jazz, from games to soft porn and from movies to documentaries and scientific productions. But the CD-i was no gaming machine; for that it was too slow. It was no a machine for interactive documentaries as its authoring system (Taiga) was too expensive. But as a movie machine it was a start; but Hollywood was not prepared yet.

Besides format problems there were more problems in the technology development worldwide. Internet came up as a multimedia technology for consumers. And consumers were more interested in internet than in a technology which had not yet matured. But the electronic publishers of the Philips Interactive Publishing Company did not find this a problem; with some extra technical gear they thought up CD-i Online, the CD-i holding the static information and internet presenting the timely information through a slow dial-up connection.
But this turned out to be the last efforts of CD-i market efforts.

By September 1996 Mr Boonstra, the successor to Mr Timmer, made a clear decision. Philips was in manufacturing consumer electronics and not in publishing. He abandoned CD-i, sold the spoils of the publishing company to Infogrames and moved on with developing DVD.

Tomorrow I will publish a series of CD-i covers from my collection.

Blog Posting Number: 824

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Tuesday, May 22, 2007

Speech technology company in court (1)

Yesterday the court case about the speech technology firm Lernout and Hauspie (L&H) started in Ghent (Belgium). At last; after six years of preparation. It is a mega process about fraudulent bookkeeping. Some 21 persons have been indicted as well as the accountant company KPMG and the bank Dexia. No less than 90 lawyers are representing their clients. The court has left the court house and has started the proceedings in an exhibition centre. The court case catches a lot of attention as more than 13.000 shareholders lost money. They can not request compensation as this court case is one of criminal proceedings and is not a civil case.

L&H started in 1987 in the Belgian technology hotspot Ieper. It grows in no time to a company worth 10 billion euro. In 1998 Bill Gates visited the company which saw it as its mission to make language the interface to man-machine manipulation. By 2001 everything was over and the company had gone bankrupt. The Wall Street Journal had started a series of articles one year earlier, claiming that the figures had been pumped up; especially in South Korea where more than 40 percent of the revenues were picked up. According to prosecution managers of L&H received money from the banks and used this in order to establish Language Development Centers, which ‘bought’ licenses to the speech software. Eventually the prosecuters claim that L&H pumped up the figures for 166 million euro.

It is a case of national pride, technology hype and conspiracy. Belgians were proud of their innovators; the royal house regularly received the founders of the company at their palace. Speech technology with translation software as well as speech-to-text software was sexy. But there was also suspicion about secret services and industrial spy activities. The US CIA was said to be after the company as it had technology the CIA did not have. The European secret service network Echelon helped the company to go into bankruptcy.

The culmination of problems came in the years of the internet hype. Everything was possible technically and money wise. But growing fast harbours risks, especially personnel risks. The managers Jo Lernout and Pol Hauspie do not check closely the credentials of people that offer their services. In this case, when people said that they had been a manager in the Dutch consumer company Philips they were accepted with eagerness; in this case we see back Gaston Bastiaens, the manager of the Philips CD-i technology and publishing venture, which was called off in 1996. When people said that they made big deals with Philips, they were believed; it is said that Maurits de Prins, who swindled Philips with the video chain Super Club, was involved in financing L&H through a Dutch straw man. Also the one year vice CEO of Philips, Roel Pieper was one of the crises managers of the company for a short time; he has not been indicted.

The total proceedings will take half a year. I will keep you updated.

Blog Posting Number: 761

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