Philips Natuurkundig Laboratorium Diepeveen built an error-correcting coder-decoder that was delivered in the summer of 1978. The decoder was included in the CD prototype player that was presented to the international press. To commemorate this breakthrough, Philips received an IEEE Milestone Award on March 6, 2009. This breakthrough was also appreciated by Sony and they started a cooperation with Philips that resulted in June 1980 in a common CD system standard. Philips as a whole took a turn for the worse and by the end of the 1980s bankruptcy seemed a very real possibility. Under research director Kees Bulthuis the position of long-term
Philips CD-i partnered in 1992 with Amsterdam-based CDMATICS to develop TeleCD-i (also TeleCD). In this concept, the CD-i player is connected to a network such as PSTN or Internet, enabling data-communication and rich media presentation. Dutch grocery chain Albert Heijn and mail-order company were early adopters and introduced award-winning TeleCD-i applications for their home-shopping and home-delivery services. CDMATICS also developed the special Philips TeleCD-i Assistant and a set of software tools to help the worldwide multimedia industry to develop and implement TeleCD-i. TeleCD-i is the world's first networked multimedia application at the time of its introduction. In 1996, Philips acquired source code