How institutions work in synergy for production and distribution

Media Conglomerates are massive multinational media companies who own:

• Film Studios 
• TV Stations 
• Record Labels
• Magazines 
• Newspapers 
• Books 
• Internet Platforms 

A conglomerate has a lot of money to put into film production. They can also market their film through all of their subsidiary companies. This practice is known as a synergy. 

Some producers work outside of the major studies. Often British production are made by smaller outfits like Wrap Films, working with Film 4 or the BBC to try and secure extra funding and help with distribution. Often films made this way struggle to get more than £1 or £2 million budgets and consider a success to break even, with DVD after-sales included. 

US independent film maker Oren Peli made 'Paranormal Activity' for just $15,000. But he needed Paramount, a US major studio to distribute his film. In doing so he made over $190 million. This shows there are exceptions to the rule that big budget films always to best.