The film production industry is lucrative with major production houses raking in hundreds of millions of US dollars for specific projects. We all love movies, probably because there are different genres available for different people. There are comedy, horror, thriller, and sci-fi genres, among others. This is why the highest-earning production houses put in a lot of work in a given project to ensure that the film interests the target audience.
For years, the Hollywood scene has been dominated by the studio system, which entails a number of high ranking production houses. These film houses are in charge of film production as well as distribution to the target market. These major studios usually release several movies each year while earning profit shares from box office revenues. Let’s look at these major film production houses that earn the highest in the industry.
Warner Bros. Pictures
Warner Bros. is amajor entertainment production house that has its headquarters inBurbank California. It is the flagship brand of AT& T’s Warnermedia and plays a key role in film production, television as well asvideo games. Warner Bros has been in the entertainment industry since1923 and has produced some of the best films that innovated theindustry.
Warner Bros. filmcompany is also famous for the creation of great film franchises suchas Harry Potter, Matrix and Batman, which attracted other marketsoutside the US. Through the years, Warner Bros. has acquired severalsubsidiaries and divisions which have contributed to its growth andsuccess. The subsidiaries include;
- Castle RockEntertainment
- DC Films
- New LineCinema
- Castle RockEntertainment
- Warner Bros.Animation
In 2013, WarnerBros. had the largest market share valued at $5.03 billion in theworld market. The company continues to generate billions fromworldwide receipts hence surpassing the $4 billion mark. Theorganization boasts that 2018 was its best year so far because theywere able to gain over $5.57 billion in total global receipts. Thedomestic revenues were valued at $1.95 billion, and the internationalrevenues gathered $3.62.
Walt Disney Studios
The entertainmentunit of the Walt Disney Company is led by the Walt Disney Studios,which is globally known for its famous movies. Though mostproductions worked on by Walt Disney Studios target youngeraudiences, some movies attract both children and adults.
The Walt DisneyAnimation Studios is a subsidiary that specializes in the creation ofanimated films that continue to gain popularity among differentaudiences.
Some of thefamous productions by the animation studios include the fairy talemovies of Snow White, Frozen, Beauty and the beast among others whichhave been widely appreciated by audiences from across the globe.
The filmproduction company distributes movies under subsidiary productionfirms such as Pixar, Touchstone, Marvel and LucasFilm. The firm alsoworks on several projects that include the production of liveentertainment events, post-production services and stage plays.
As per the WaltDisney Company’s financial statements, in 2018, the media networksgenerated a total of $6.0 billion. The studio entertainment unitalone generated $2.2 billion, which was a 50% increase from 2017.Walt Disney Studios continue to increase their earnings with thelatest remakes of their famous animation movies. The remakes includeBeauty and the Beast movie, Ariel and Lion King movie.
20th Century Fox
This film companyranks second as the largest production company after Warner Bros.20th Century Fox has successfully produced and distributed severalsuccessful movies including Ice Age, The Fantastic Four, X-Men, andPlanet of the Apes among others. 20th Century Fox has somesubsidiaries working under it. They include;
- Fox StarStudios
- FoxSearchlight Pictures
- Zero Day Fox
In 2013, the 20thCentury Fox parent company decided to change the entertainmentdivision to 21st Century Fox while the movie studio and the TVcompany retained the original 20th Century Fox name. Earlier thisyear, Disney bought the film company in a merger which involvedDisney taking control of the film and television assets owned by theproduction houses. The merger will certainly result in qualityproductions as well as successful franchises.
Paramount Pictures
ParamountPictures is mostly known for being one of the longest operating filmhouses in Hollywood. Founded in 1912, the company became a subsidiaryof Viacom in 1994 which allowed it to become one of the mostsuccessful production houses in Hollywood.
In 2014,Paramount Pictures became popular for being the first film studio touse a digital format in its film distribution. Viacom CEO in a recentconference with Wall Street analysts said the film studio hadincreased its profitability over the past three years by up to $500million. Big films like What Men Want and Wonder Park havecontributed to the success of the company. The latest financialstatements from the company show that it generated $730 million inrevenue, which is quite a remarkable performance in the entertainmentindustry.
Universal Pictures
Comcast ownsUniversal Pictures studio through NBCUniversal which is a subsidiary.The film company has been in operation since 1912, making it one ofthe oldest studios in Hollywood. Universal Pictures is known for theproduction of its classic movies such as Jurassic Park, Jaws and ET,which were all creations of Steven Spielberg.
The UniversalAnimation Studios is a division of the Universal Pictures, whichdeals with the production of animated films and Television series. In2007, another division was added known as Illumination, which isfamous for the movie called Despicable Me. The movie waswell-received by audiences from across the globe hence generating agross of $546.1 million. The franchise has since been able togenerate up to $3billion. Other subsidiaries and divisions underUniversal Pictures include;
- DreamworksAnimation
- WorkingTitle Films
- UniversalStudios Home entertainment
- FocusFeatures
Sony Pictures Entertainment
The film studio under Sony Entertainment is known as Sony Pictures Motion Picture Group. The largest subsidiary of the studio is Columbia Pictures which was bought from Coca Cola in 1989 for $3.4 billion. It was previously known as Columbia -Trista Pictures, which is now acting as a subsidiary of Sony. It is one of the biggest studios in the film industry notable for its famous films such as Jumanji, Resident Evil and Men in Black.
In 2019, Sonypictures generated up to $489 million by the end of its financialyear ending March 2019. Some of the subsidiaries operated by SonyPictures include;
- Screen Gems
- TriStarpictures
- SonyPictures Classics
Sony PicturesEntertainment had its best year in 2012 when it successfullygenerated up to $4.4 billion in terms of the box office. The filmstudio produced and distributed successful film creations during thatyear that increased its net profits.
The sixhighest-earning film production companies mentioned have been in theentertainment industry for decades. As the years went by thesecompanies remained relevant by producing film content that wasappealing to the audience. Other film companies joined these majorproduction houses as subsidiaries which allowed them to grow as well.
The success of afilm production company depends on several factors. Some of thosefactors include having a dedicated team, investing in the rightequipment, considering the target market and learning about yourcompetition, among others.
