Type
Entertainment companies operate as mini conglomerates, operating many divisions or subsidiaries in many different industries. Warner Brothers 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 film production company, TV production company, video game company, and comic book company are all owned by a single entertainment company). 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 production company can either operate as an affiliate (under a contract) or as a subsidiary for a entertainment company, motion picture company, television network, or all, and are generally smaller than the company they are partnered with.
Read more about this topic: Production Company
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