Institutions

Time Warner have many layers of vertical integration, owning hundreds of other businesses. One of their subsidiaries is Warner Bros. Warner Bros then vertically integrates into many other businesses, one example of a Warner Bros subsidiary is New Line Cinema. This means that New Line cinema is owned by Time Warner, but its parent is Warner Bros.

Vertical integration is where a business in the same distribution and production chain. For example, Time Warner owns Warner Bros and so can distribute films globally that New Line Cinema and Castle Rock Entertainment produce (other vertically integrated subsidiaries owned by Time Warner). These films can then be distributed to other subsidiaries that Time Warner own such as Cinemax (a US premium cable film channel) and Warner Horizon Television (an international TV company). Warner Bros owns both their suppliers who make the films, and their distributors who can shows what the suppliers make.

Horizontal integration is a media company's ownership of several other businesses of the same or similar value. This can be seen in the media industry as owning magazines, books, radio, television and newspapers. Time Warner own Mad (a magazine), CNN Newsource (radio) and HBO entertainment (TV). This helps create more money for the business as it will meet a wider target audience because some people would prefer a newspaper, where as others would prefer news via the TV or radio.

New Line Cinema are a subsidiary of Time Warner, with Warner Bros being their parent company. They were founded in 1967 making 521 films as the distributors and the producers, and 440 as the production company since 1967. Those 440 films were distributed by Warner Bros. Time Warner are one of the big six multinational media conglomerates within the industry that create the oligopoly in the market. An oligopoly is where a few businesses own the majority of the market. This means that it is hard for other companies to gain a large share in the market and receive a large scale audience.

Minor and major film institutions vary in many ways. Major institutions such as Universal have large budgets at their disposal, meaning they can cast their characters from a wider selection of auditions (including the best of movie stars), they can have a larger production team making filming and editing easier and quicker, as well as being able to distribute their films to a much wider, international audience. On top of that, major institutions have the funds to buy the best equipment for their films such as cameras and microphones etc, allowing better quality films for the audience, they can use CGI to make the special effects seem more realistic, and furthermore, they make more money from films which can then reinvest it into future films. Minor films studios have not got the same capabilities that major studios have so the films produced by minor institutions tend not to be as successful in comparison.

They have produced lots of famous horror films, including Conjuring (2013), Conjuring 2 (2016), The Nightmare on Elm Street (1984), The Nightmare on Elm Street 2 (1985) The Nightmare on Elm Street 3 (1987), The Nightmare on Elm Street 4 (1988), The Nightmare on Elm Street 5 (1989), Annabelle (2014), The Texas Chainsaw Massacre (1974, 1990, 1996, 2003, 2006), Seven (1995), Friday the 13th (2009), Snakes on a Plane (2006) and Critters (1986, 1988, 1991, 1992) to name just a few of their more successful horror films.

Annabelle, a film produced by New Line Cinema and Distributed by Warner Bros,  had a budget of $6.5 million, which is quite small in comparison to many other films distributed by Warner Bros such as Harry Potter and the Philosopher's Stone which had a budget of $125 million. New Line Cinema, although they have the money available for them to use from Time Warner, use small budgets for their productions. Despite the small budget, Annabelle had a box office of $256.9 million, showing that small budgets can still create big revenues. Budgets can be very important for production companies because the quality of the film can be improved by investing more money into it. However the businesses will have to decide whether the film will generate enough revenue to be worth investing a larger budget or else the film could make a loss.

Annabelle has been nominated for 5 different awards in 2015. The Academy of Science Fiction, Fantasy & Horror Films, USA nominated Annabelle as the 'Best Horror Film', and so did the Empire Awards, UK, nominating it as the 'Best Horror'. The People's Choice Awards, USA nominated Annabelle as their 'Favourite Thriller Movie'. The film was also nominated for the success of two actresses in their film, Annabelle Wallis was nominated by MTV Movie Awards with the 'Best Scared-as-S**t Performance' and Alfre Woodard being nominated for 'Best Supporting Actress' by Fright Meter Awards. These nominations shows that the film was widely received in both the US and the UK as it was nominated for awards within both countries.