Every film that receives a commercial release must do so under the banner of movie production companies. Even independent films are made, marketed and distributed by movie production companies that may have been formed just for the express purpose of releasing that one particular movie. Movie production companies purchase scripts and secure the funding that allows a film to be made. They make strategic moves such as buying up scripts that they will never use, simply so that other companies are unable to make movies based on them. Movie production companies decide whether to hire actors that are already well-known (and expensive) or to take a gamble on new, fresh talent.
Major Movie Production Companies
Most people are familiar with the big movie production companies like Twentieth Century Fox, MGM, Warner Brothers, and Disney. These companies are also well-known for their television shows, musical artists and the various product endorsement deals that are associated with their media projects. These companies usually buy and distribute films that have already completed production under a different company. This is what is meant when film industry insiders talk about distribution deals. Many independent films achieve their commercial theatrical releases in this manner. A film will be made by an independent producer who will arrange to have it shown at one of the famous international film festivals, where it will hopefully be seen by someone who works for a major studio and wants to buy the distribution rights to that film. Even major films pass through the hands of multiple movie production companies. For example, the Transformers movies were produced by DreamWorks Pictures and distributed by Paramount Pictures; not even having Steven Spielberg on board as a producer simplified the process or making the films and placing them in theaters so that people could watch them.
Independent Move Production Companies
Very often a major movie production company will form a subsidiary company that specializes in independent films. Such is the purpose of Fox Searchlight Pictures, which distributes 
small movies under the general Fox banner. Some of Fox Searchlight’s notable recent releases include (500) Days of Summer, Once, Juno, The Wrestler and Slumdog Millionaire. These movies achieved so much critical acclaim that it is difficult to conceive of them as the small, independently produced films that they are. Slumdog Millionaire even won the Academy Award for Best Picture in 2009! Juno won the Best Screenplay Oscar in 2008. Additionally, “Falling Slowly,” which was written for Once, won the Oscar for Best Song from A Film in 2008, and (500) Days of Summer is commonly regarded as a watershed moment in independent films that reached mass audiences. While independent films are not always commercially successful, they can be incredibly influential and are therefore treated as important projects by movie production companies. Independent films like Clerks have permeated popular culture in such a way as to have lasting effects on the way major films are made, as well as other kinds of media and fashion. Movie production companies like to indulge in pet prestige projects in order to gain the respect of other companies and to attract the best writing, directing and acting talent.
Another very successful independent production company is Summit Entertainment, which released the Twilight movies. The unexpected success of those films has made Summit a major player in the business of movies, but it is still technically an independent company who got lucky by buying the rights to a popular book series. It is now one of the most successful movie production companies in history, despite its lingering status as a small indie operation.
How to Start a Production Company
Technically, anyone who has made a film of any length and has shown it before an audience is the owner of his or her independent movie production company. Those with the talent and drive to make films would be well advised to either take business courses or to work with someone who has business knowledge, as the film industry can be a legal minefield even at the best of times. Contractual knowledge is necessary if one decides to buy scripts and hire actors. Many famous actors have taken the reins and used their clout to start production companies in order to guarantee that the movies they believe in are made properly and with integrity. Drew Barrymore started Flower Films in 1995 in part to guarantee a bigger female presence in the films in which she acts. Flower Films has produced movies like Donnie Darko, Never Been Kissed and the Charlie’s Angels series. Vincent Gallo made the polarizing decision to write, star in, direct and produce his shocking 2003 film The Brown Bunny all on his own and outside of the union guidelines that frowned upon the film’s risqué content. While the film itself received mixed reviews for its plot and quality, Gallo was generally praised for his commitment to the art of film and his conviction in telling his story on his own terms.
Movie production companies are not always the corporate monoliths that they appear to be in the public’s collective imagination. Often, they begin when people have a shared creative vision that they want to communicate to other people, so they gather together to express that idea. The writing, music, wardrobe choices, acting and overall visual aesthetics of films make movie production companies good avenues of expression for people in every creative field.
For more basic information about movie production companies take a look at this YouTube video.
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