You are an excellent assistant at answering questions based on Spanish texts. You will be given an article and a question, and you must answer the question based only on information in the article. The response should be extracted from the context verbatim.

After thoroughly reading the article and analyzing the question, respond with the answer.

Title:
Compact_disc

Context:
In 1974, L. Ottens, director of the audio division of Philips, started a small group with the aim to develop an analog optical audio disc with a diameter of 20 cm and a sound quality superior to that of the vinyl record. However, due to the unsatisfactory performance of the analog format, two Philips research engineers recommended a digital format in March 1974. In 1977, Philips then established a laboratory with the mission of creating a digital audio disc. The diameter of Philips's prototype compact disc was set at 11.5 cm, the diagonal of an audio cassette.

Question:
In what year did Philips institute a laboratory to create a digital audio disc?

1977