Philips and the Cassette: How Sharing Changed The World

The Revolution in a Plastic Box

It was 1962 when Philips unveiled the compact cassette: a small, portable tape that would conquer the music world. But instead of shielding the technology with patents, Philips made a radical move: they shared it. Not by giving it away, but by licensing it to competitors like Maxell, Sony, and TDK. Why? Because they understood that a standard only survives if everyone uses it.

Imagine a world where only Philips could produce cassettes. Prices would remain high, choices limited, and the technology might never have reached the mass market. Instead, the cassette became the sound of a generation—from homemade mixtapes to underground punk recordings in dimly lit basement clubs. Philips didn’t just profit from the tapes themselves, but especially from the recorders, Walkmans, and car radios needed to play them. It was a masterstroke: by letting go, they won everything.

The Open-Source Spirit: A M​odern Echo

Philips’ strategy sounds like a prelude to the open-source philosophy. Take Linux: in 1991, Linus Torvalds posted the source code of his operating system online with the words: "Hey, this is fun, who wants to help?" Thousands of developers joined in. Today, Linux runs on 96% of internet servers, in Android phones, and even in space probes. Like Philips, Torvalds chose openness over control—and won.

But there’s a crucial difference. Philips charged licensing fees; Linux is free. Yet companies like Red Hat and Canonical earn billions from support and services. Openness creates new economies, not by selling products, but by building ecosystems.

IBM’s Gamble: The PC as an Open Platform

In 1981, IBM did something unthinkable: they published the technical specifications of their first PC. Anyone could build clones. The result? An explosion of compatible computers and the dawn of the era dominated by Microsoft and Intel. IBM did what companies like Commodore had failed to do. Commodore held a large share of the computer market in the late 1970s with the iconic C64 and, of course, the Amiga series. Philips arrived later with the MSX systems, which were also partially opened up. IBM thought they would dominate the market, but ultimately lost control. Still, their choice was the spark that ignited the PC revolution.

This is the paradox of open innovation: you can change the world, but you can’t always stay in charge—and honestly, that’s not the point. It’s about developing with a community.

Tesla’s Electric Race

In 2014, Elon Musk shocked the world by releasing all of Tesla’s patents. "We want electric cars to win, not just Tesla," he said. It was a pure open-source move: collaborating to accelerate an entire industry. Like Philips and IBM, Musk understood that a closed system stifles growth. Today, all car manufacturers compete in electric driving. Here, too, the pioneer has lost the market lead. Since 2025, BYD has been the market leader in electric cars.

OS-SCi and the Future of Open Education

At OS-SCi, we apply the same principles. Our "Lego-block" approach to open-source education enables students to build their own learning paths, just as developers do with open-source code. The FOSS Career Fund Foundation, which we established at Spoorlaan in Tilburg, functions like the Bluetooth SIG or Wi-Fi Alliance: a non-profit structure that organizes collaboration so everyone can participate.

Our day activity project for autistic highly gifted individuals in Linux, programming, soldering, and 3D printing is a perfect example. Like Philips with the cassette, or IBM with the PC, our goal isn’t just to share knowledge, but to create an entire ecosystem. A helpdesk where participants do real work for open-source projects. A study fund for students who want to delve into open technology. It’s modern proof that openness isn’t just idealistic—it’s strategically smart.

The Lesson: Letting Go is the New Power

Whether it’s cassette tapes, operating systems, or education, the greatest innovations emerge when we open the door. Philips, IBM, Tesla, and Linux teach us that openness isn’t a weakness, but a strength. It’s why the internet exists, why Wikipedia outlasted Britannica, and why we at OS-SCi can train a new generation of open-source professionals.

The question isn’t whether openness works, but how you will apply it.

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