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A production company , production house , production studio , or a production team provides the physical basis for works in the realms of the performing arts , new media art , film , television , radio , comics , interactive arts , video games , websites , and video.

Production teams are a group of technical staff who produce the media, generally the term refers to all individuals responsible for the technical aspects of creating of a particular product, regardless of where in the process their expertise is required, or how long they are involved in the project.

For example, in a theatrical performance, the production team includes not only the running crew , but also the theatrical producer , designers and theatre direction. The production company may be directly responsible for fundraising for the production or may accomplish this through a parent company , partner, or private investor. It handles budgeting, scheduling, scripting, the supply with talent and resources , the organization of staff, the production itself, post-production , distribution, and marketing. Production companies are often either owned or under contract with a media conglomerate , film studio , entertainment company , or Motion Picture Company, who act as the production company' s partner or parent company.

This has become known as the "studio system". Independent studios usually prefer production house see Lionsgate , and sometimes as a production studio or production team see Amazon Studios or Rooster Teeth. In the case of television, a production company would serve under a television network. Production companies can work together in co-productions. In music, the term production team typically refers to a group of individuals filling the role of " record producer " usually reserved for one individual.

Some examples of musical production teams include Matmos and D-Influence. Entertainment companies operate as mini conglomerates , operating many divisions or subsidiaries in many different industries. Entertainment and Lionsgate Entertainment are two companies with this corporate structure. It allows for a single company to maintain control over seemingly unrelated companies that fall within the ranges of entertainment, which increases and centralises the revenue into one company example: A motion picture company, such as Paramount Pictures , specializing "only" in motion pictures is only connected with its other counterpart industries through its parent company.

Instead of performing a corporate reorganization, many motion picture companies often have sister companies they collaborate with in other industries that are subsidiaries owned by their parent company and is often not involved in the making of products that are not motion picture related. A film production company can either operate as an affiliate under a contract or as a subsidiary for an entertainment company, motion picture company, television network, or all, and are generally smaller than the company they are partnered with.

A book to film unit is a unit of a book publishing company for the purposes of getting books that they published adapted into film. Films have been using books as a prime source for films for years. In , six out of the nine best picture Oscar nominees were originally books. Previously, publishers did not develop their books into movie nor receive any of the profits. Neither Scholastic or Little Brown, get any box office revenue from the Harry Potter and Twilight movies just through book sales.

As the publishers faced decreasing revenue due to increased competition from self-published e-books, or Amazon. More screenwriters are turning to book publishers to get their screenplay published as a book, so as to have a boost in their attempt to have the screenplay turned into a movie, given that it is a known product after the book. Random House was the first big six book publisher to establish a book to film unit, Random House Films , in with a Focus Features deal under a development and co-finance plan.

Macmillan Films was launched by Thomas Dunne Books in October under the packaging model similar to Alloy while also moving to get film rights from Dunne's published author.

A production company is usually run by a producer or director, but can also be run by a career executive. In entertainment, a production company relies highly on talent or a well known entertainment franchise to raise the value of an entertainment project and draw out larger audiences. This gives the entertainment industry a democratized power structure to ensure that both the companies and talent receive their fair share of pay and recognition for work done on a production.

The entertainment industry is centered on funding studio investments, private investments, or self investments either from earnings from previous productions or personal wealth , projects scripts and entertainment franchises , and talent actors , directors, screenwriters , and crew. Production companies are judged and ranked based on the amount of funding it has, as well the productions it has completed or been involved with in the past. If a production company has major funding either through earnings, studio investors, or private investors, and has done or been involved with big budget productions in the past, it is considered to be a major production company.

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These companies often work with well-known and expensive talent. If a production company does not have much funding and has not done or been involved with any big budget productions, it is considered to be a small production company. These companies often work with up and coming talent. Small production companies will either grow to become a major production company, a subsidiary completely owned by another company, or remain small.

The success of an entertainment production company is centered on the projects it produces, the talent it can acquire, and the performance of the talent. Marketing is also a major factor. All films, as a tradition, are often marketed around the image and the performance of the actors; with an option of marketing the behind the scenes crew such as the directors and screenwriters.

Unlike many other businesses, a production company does not rely on an ongoing revenue stream , they operate on ongoing investments; this often requires a parent company or a private corporate investment entity see Legendary Pictures. Their only source of profit comes from the productions they produce.

So You Want to Set Up Your Own TV Independent Production Company? | So You Want to Work in TV

Because entertainment and media are currently in "high demand", a production company can profit if its management is capable of using its resources to supply good quality products and services to the public. Many entertainment production companies brand their entertainment projects. An entertainment project can either become a "one time hit" or an ongoing "entertainment franchise " that can be continued, remade, rebooted , or expanded into other sister industries; such as the video game industry see Star Wars , Star Trek. Entertainment projects can be either an original or an adaptation from another industry.

Notable examples include legendary studio Metro-Goldwyn-Mayer , which, after many years of box office flops mostly with low budgets , bad management and distribution, and bankruptcy, was restructured at the end of under new management and currently struck deals with some of the Big Six studios most notably the Sony Pictures Motion Picture Group and Warner Bros.

They also cater to newcomers to the television industry with one-to-one coaching and networking events. What are the key considerations for someone contemplating setting up on their own? There are many reasons to consider setting up your own production company, but the primary motivation is, of course, financial. But the ultimate goal of every production company owner is to build the annual EBITDA profits in the hope that one day it will form the basis of a valuation, allowing you to generate a multiple of those profits as your retirement fund!

What aspect of the business do new small independents struggle with most?

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Most indies are set up by successful, creatively-minded production people, but when their companies start doing well they suddenly find themselves playing a boardroom role, typically with very limited corporate experience or training. As such, a very high percentage of indies are making great programmes, but are operating very poorly, from a commercial viewpoint. Despite the apparent glamour and mystique of building a programme library, the company will eventually be valued using the very same methodology applied to companies in every other industry: As such, making the move from producer to successful indie-boss requires a complete change of thinking.

The list of issues facing indie-bosses are a great many times those of a typical jobbing production exec, but so are the potential opportunities to multiply their financial success. Does a successful TV executive necessarily make a successful independent producer? The answer depends on your definition of success.

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If the purpose of your indie is just to make good programmes, not good profits, then perhaps! As the vast majority of production people are creatively-minded, the solution to launching and building a successful indie is typically to develop your business skills through training, or to get outside help from professional TV-industry advisors. But back on planet earth, things rarely happen that way and even the very best producers will end up struggling with common cash-flow issues without a high degree of business acumen, or professional help.

Which is more important — the ideas or the business acumen?

Production company

Sadly perhaps, ideas are increasingly worth little in the television business. Partly thanks to the advance of technology, broadcasters have more and more audience data, allowing them to create ever more detailed briefs about exactly what they want for each slot, as part of their own strategy. The public briefs which broadcasters give about what they want are useless. How does consultancy help a struggling independent?

The vast majority of indies are operating at a depressed performance because of a long list of common failings some of those are listed on the Indies section of our website www. For established indies, we help increase profitability across all areas, building shareholder value and eventually securing a lucrative exit for the shareholders.