FT. Nov 1999. Meridian and DVD-Audio

The David and Goliath show
The technical prowess of a small UK hi-fi company has enabled it to triumph against much larger competitors, writes David Murphy

Agreeing technical standards for new audio and video formats is a long and arduous process, bringing together huge multinational corporations, each with their own views on how things ought to be done and each prepared to fight its corner.
When the technical specifications for DVD-Audio, a high-quality audio variant of the successful DVD-Video (Digital Versatile Disc) format, were announced in April 1999, for example, it was the culmination of several years of meetings involving representatives from companies including IBM, Intel, Royal Philips, Sony, Matsushita and Time Warner.
Yet the key component of the new format, the audio encoding process which delivers the high quality audio on which DVD-A will be marketed, was developed not by one of these industrial giants, but by a small UK hi-fi company, Meridian Audio.
Meridian's MLP (Meridian Lossless Packing) system was selected after a four-way beauty contest with systems proposed by companies much larger than Meridian, "some of them larger than Mexico" quips Meridian chairman and technical director Robert Stuart.
Mr Stuart has long believed that any pure audio version of a high-density disc format such as DVD must embrace multichannel surround, as opposed to two channel stereo, sound.
But when he presented these views to the Japanese companies developing high-density disc formats in 1995, he was met with a stony silence.
"Corporately" says Mr. Stuart, "Japan was extremely wounded by the experience of quadraphonic sound (a failed surround sound format), and many people we talked to said: 'oh no, people don't want surround, it was a disaster for us, we're never going back there.'
"They also don't have the experience that we've had in America and Europe of home cinema" he adds. "With small rooms, people just don't build surround sound systems, generally speaking, in Japan. So there was no kind of experience to build on or to see what it could do for music."
Despite the Japanese companies' indifference, however, Mr. Stuart decided to start speculative development work on MLP in 1996. He had a good idea of the sort of capacity which would be needed on what was to become the DVD-Audio disc, and he knew that some form of encoding would be required which would pack the data more efficiently, without altering the final decoded signal in any way, in order to achieve both the desired quality of sound and a 74-minute playback time.
With over 80 minutes of 6-channel (surround) 96kHz (sampling frequency), 24-bit (resolution) playback time and 120 minutes of 2-channel stereo at 192kHz, 24-bit, this is exactly what MLP offers. CD, by comparison, offers a sampling rate of 44.1kHz and only 16-bit resolution.
"We could see what was needed on the disc and there just wasn't room" says Mr. Stuart. "There were all kinds of things being discussed about ways of squeezing more and more on, like having bigger sample rates at the front than the back and all these things that were really ways of avoiding the issue that what was needed was lossless compression. So we decided to develop it, quite speculatively. We expected, frankly, that it would be a waste of time and effort, but we did get the breakthrough because the music industry did decide that they wanted it."
This breakthrough came in April 1998, when the requirement for a lossless compression system emerged from the DVD Forum. With two years' development work on MLP under its belt, Meridian was well placed to win the beauty contest, though there was still a lot of work to do in writing it into the DVD-Audio format and working with Dolby Laboratories, whom Meridian has appointed to licence the MLP system.
Mr. Stuart admits that the intensive work required on MLP did have an effect on Meridian's core business of manufacturing high-end hi-fi.
"We had to expand our R&D team quickly and we had to reorganise, because we had a new business interest and I was having to devote a significant percentage of my time to it" he says. "I had to promote and guide people up within the organisation faster than they might have done, but it's done them good. Now we can refocus back but with a much stronger team."
As he does so, Mr. Stuart admits to fond memories of the battle to have MLP adopted for DVD-Audio.
"That time will remain with me forever as an incredible experience" he says. "We were pitched in with huge corporations. It was like a battle. There was a lot of idealism, of adrenaline, we fought companies 2,000 times our size, we sat through endless meetings, we were praised, we were mistrusted, we made lifelong friends, we threatened some, we irritated others, but incredibly we ended up where we set out to go."
But with the first DVD-Audio players and discs set to go on sale in Europe just before Christmas, some members of the DVD Forum have not given up the fight yet. Sony and Philips have developed their own rival high-end audio format called Super Audio CD (SACD). SACD players are already available in Japan and will arrive in Europe in the spring. When quizzed about SACD's prospects, however, Mr. Stuart is dismissive.
"Does anyone know how to spell 'Elcassette?'" he asks, a reference to Sony's ill-fated attempt to improve the sound quality of the audio cassette by developing a larger version of it in the mid-1970s.
"We think it's very unfortunate that two audio formats are being launched at the same time" he continues. "Personally, I don't think there's any reason for [SACD] to exist, because it doesn't offer any advantages."

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