For teenagers, the only news that matters from Terre Haute's Digital Audio Disc Corp., a Sony Corp. subsidiary, is the next release--be it DVD, CD or games for the new portable PlayStation coming next year.
For those with their eye on Indiana's economy, the news that counts includes this year's $20 million production expansion and announcements that the new PlayStation games will be made in Terre Haute as well as high-definition prerecorded video, to be launched from the plant in 2005 or 2006.
"Having content, having hardware, having production engineering capability with strong reinvestment and a very tight-knit group that meets regularly really drive our success," says Michael Mitchell, executive vice president.
Mitchell oversees a massive Terre Haute operation, both in size and production volume. Two buildings with a combined 730,000 square feet are located across Fruitridge Avenue from each other, connected by both a tunnel and pedestrian overpass.
Daily production, which runs around the clock seven days a week, currently totals 850,000 low-density products--PlayStation games, audio CDs and CD ROMs--and 1.55 million high-density products--including DVDs, videos, DVD-ROMs and PlayStation 2 games. That's more CDs, DVDs and PlayStation media than are made at any other facility in the world, the company reports.
And production is way up from its early years.
"We started in the CD audio business. We were the first CD manufacturer in this country. In September and October 1984, about 300,000 discs a month was our capacity," Mitchell says.
The first recording produced was Brace Springsteen's "Born in the USA." Other top artists have included Barbara Streisand, the Dixie Chicks, Bob Dylan, Michael Jackson, Celine Dion, John Mellencamp, Mariah Carey and countless more. It also produced the "Spiderman" film on DVD, which became the largest-selling release on an optical-disc format.
"Through the latter part of the '80s and early '90s, we were in a period of total expansion in those low--density products," Mitchell says. Video discs were made from 1989 to 1996. "Every low-density format that come along, we've participated in," he says.
The latest boost for Digital Audio Disc Corp. came this year with 15 new production lines, requiring $20 million in new equipment, Mitchell reports. "We had the space. The lines are up and running."
In all, some 1,030 workers are on the job, putting in 12-hour days, four days on and four days off. The Indiana staff also includes about l0 in engineering, an important component in the company's success.
"Term Haute is the central engineering hub for this hemisphere," says Mitchell, who got his start with the company in that group. He's now responsible for the entire Terre Haute facility, as well as a portion of each of the company's operations in New Jersey, Mexico, Brazil and Canada.
This year marks the company's 20th anniversary in Terre Haute.
"The workforce hem has been fabulous," Mitchell says. "They have a strong work ethic and strong commitment to succeed. That's been tantamount to our success as well."
Since 1983, its presence has meant "well over $1 billion to the local economy. That includes payroll, taxes, goods and services we've bought and trade labor in construction," he says.
"Acceptance of the products has a lot do with it," Mitchell says of the company's growth. "Sony and Philips pretty much invented the CD format. Sony is now the proud owner of the hardware. And the content that goes on it is important, too. We own the content for movies, music and games," he says.
"We hold the No. 1 market share in the game business. We have the best of any movies in the business. And we're one of the largest music companies on the globe," Mitchell asserts. "Plus, we serve a custom business, with more than 700 active clients covering all these products."
Besides the entertainment industry, the ISO-certified plant in Terre Haute makes products for the education and information industries, too.
Its Terre Haute location also is strategic, Mitchell says. "If you were to look at the population distribution of the U.S. within a reasonable rate haul from Terre Haute, it's a fantastic place. We can access 40 percent of the U.S. population very readily. It's a very good location for distribution of retail products."
The company is probably too big to be acquired, he suggests. "Sony is referred to as an 800-pound gorilla. We've been able to avoid consolidation because we would not be merging equals. We use technology that makes us more effective than our competitors."
Next fall's roll-out of the portable PlayStation is one example of that. "Term Haute will make it," he says of the games that will play on the new system.
Next conies "a new, very high-density product, in the 25-gigabyte range," Mitchell says. "Its first application will be high-definition prerecorded video known as blue ray. It will be the first of the blue laser products, and it will be launched here in Terre Haute."
Both products are good news to young garners and movie watchers, and to those monitoring Indiana's economy.