This task is about writing a correct answer for the reading comprehension task. Based on the information provided in a given passage, you should identify the shortest continuous text span from the passage that serves as an answer to the given question. Avoid answers that are incorrect or provides incomplete justification for the question.
Q: Passage: 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?
A:
1977