Why Do Movies Have So Many Production Companies?

A production company, production house, production studio, or production group is a business that gives the actual premise to working in the performing expressions, new media craftsmanship, film, TV, radio, funnies, intelligent expressions, computer games, sites, and video. The production team is made up of technical staff to create the media.

Regardless of where their skills are needed in the process or how long they have been involved in the project, the term usually refers to all the people responsible for the technical aspects of making a particular product. For instance, in a film execution, the production group incorporates the running team and dramatization makers, planners, and theater chiefs.

Why Do Movies Have So Many Production Companies

What Is Production Company?

A production company is a company that produces certain kinds of films, television programs or other entertainment products. It may be independent or connected to a bigger studio.

The Main 4 Reasons Of Why Do Movies Have So Many Production Companies?

Although there are many reasons for movies, have so many production companies. But today I will share with you some main & essential reasons. So stay with us to know the main reasons:

Reason 1:

Another reason some films have more production companies (and logos) at the beginning is safety.

Here’s how it works: A film company wants to make a controversial movie. Maybe a film of a dark moment in history, or perhaps a film of a living person or a disaster, so that they will make some negative comments about a person or an organization. Think of Deepwater Horizon, which depicts BP as a huge asshole, or Sully, which shows aviation investigators’ call.

In this case, you never know whether the person/organization portrayed will sue you for defamation, and in the United States, there is no limit to the number of damages that can be incurred. So you don’t want to open your huge movie because there’s a risk of losing everything in the studio. For their protection, they will establish a small, limited liability corporation (LLC) that will be “owned” by the movie and will only have enough capital to protect the film. If it were a 20 million movie, they would pump in 10 million LLCs, secure it from a bank, and make the movie.

Then, anyone can sue them; at worst, they’ll lose 10 million LLC’s capital, but not Disney Corporation’s “100 billion dollars”.

Reason 2:

Suppose you and I each bought a Honda Civic. We can carpool in the same workplace, and we only need one car between the two of us, but we can both honestly say that we are the owners of a civic and proud to go out to our friends that we each bought a new Honda.

But what if we both wanted a Porsche GT3 RS? Or a McLaren 720? We can only use one expensive car between the two of us. So why don’t we split the expenses and enjoy both to glorify and appreciate our friends? We can both say we have an expensive car, and we can both drive, but why not buy an expensive car instead of two low budget Hondas?

Think about the point I’m making. The same argument applies to co-promotions. Why pay for the whole movie when the box office receipts are split enough? You can make a small budget movie on your own, and your friend can do the same in the simplest sense.

Yet, when you and your companions get together, you can create a big-budget film with a low budget. Then why would you make a low budget movie? Why not share the cost when it allows you to make a big-budget movie?

If two film production companies can produce 100m films a year, why not combine the budgets to make a 200 million budget movie? Co-productions are much more popular nowadays because it costs much less to make movies. This allows production companies to use more extensive and better numbers of casts, stunts, car chases, and special effects to make movies.

The bottom line is that multiple production companies can make movies together on a much larger budget. More production companies can result in much bigger budgets. This is why a film can include many production companies.

Reason 3:

A production company made a deal to make a movie with a fictional character, whose copyrights may belong to another production company, just like Sony (who owns the rights to Spider-Man) signed a deal with Marvel to make Spider-Man movies inside MSU. This is why a film can include many production companies.

Reason 4:

Often, a small production company makes a movie, then sells it to other studios who can sell it again or distribute it themselves. Many money is spent on marketing and distribution, and small manufacturing companies don’t recover it.

If it is screened at a festival, a distribution company may offer to buy the rights, then take the cost of marketing, or sell the rights to another distribution company. As a result, each company mentions credit in the title of the movie. And this is why a film can include many production companies.

Multiple Film Studios Have The Advantage Of Being Involved In A Movie

Multiple film studios have many advantages over being involved in a movie. I thought each film would be it’s own and would create a single studio. There are several benefits to having so many film studios together:

  1. With a director and lead actor attached, the film can be retained and developed into a script.
  2. Extra sponsoring can be obliged the production and promoting of the film.
  3. Filmmaking management provides production facilities and services such as soundstage, outdoor sets, transportation, cameras, lighting, props, clothing, audio recordings, and special effects.
  4. Marketing (advertising and promotion) is more.
  5. Commodities can be licensed.
  6. Domestic can be delivered.
  7. Can be delivered overseas.
  8. Sometimes, a single studio provides all of these services but often – depending on the resources and strength of a particular studio – a studio may contract with other studios to handle some of these roles.

 Frequently Asked Questions

Why Do We Need A Movie Production Company?

The main job of a production company is to hire talent agencies, castings, people who are involved in the movie making process.

How Many Producers Are There In A Movie?

Traditionally, there are three major producers in a movie:

The first producer is the highest authority and usually receives money first. The other two share a percentage of the movie’s profits after the first producer gets his part.

Why Do So Many Movies Fail To Make Money?

This happens for various reasons such as bad stories, low budget, poor marketing etc.

How Does A Movie Production Company Work?

A production company is hired by a studio who has the rights to certain intellectual property, such as a book or series of books.

Who Are The Best Movie Production Companies Of All Time?

  1. DISNEY 2. WARNER BROTHERS 3. UNIVERSAL 4. 20TH CENTURY FOX 5. PARAMOUNT PICTURES 6. LIONSGATE 7. SONY 8. SUMMIT ENTERTAINMENT 9. NEW LINE CINEMA 10. PARAMOUNT 11. DREAMWORKS 12. MIRAMAX 13. INVENTURE ONE 14. XFINITY 15. LIFETIME 16. VERTICAL ENTERTAINMENT 17. A&E 18. MGM 19. CINEMAX 20. SHOWTIME

Final Verdict

Video production identified with video makings, for example, scripting, area exploring, and coordination’s, typically includes various viewpoints. A video production company produces recordings, while a film production company produces accounts to look good, transmission apportionment or streaming.

Film production organizations do a great deal of work, generally focusing on the pre-production measure. They can help create content, even assist in post-production, or hire directors and crew. So many production companies work in the same movie.

Leave a Comment