With Disney having a few troubles at the start of the year, there is no doubting that the quality of their movies have helped them out. ‘Finding Dory,’ has been a major hit both financially and critically. ‘Dory’ was able to beat its predecessor ‘Finding Nemo’ raking in an incredible $929.1 million dollars. This is not the only time that a movie, has either made or saved a studio. However, movies can also break a studio.

Films have become so big and popular, that they are no longer just a movie. They have now become franchises with accessories, console games and theme park rides are all a part of building a successful film franchise.

Independent small studios are the most likely to be made or broken by a film. Small movies made on a shoestring budget, can see huge success at the cinema. The biggest example of this is ‘The Blairwitch’ project. The handheld camera film was an enormous hit at the box office and made a whole new filming methodology. Since the success of ‘Blairwitch’ we have seen similar films such as ‘Paranormal Activity’ show just what an impact the success of the film can have on a studio.

It is not only studio production companies which can be affected by the success of film or TV. Giant TV streaming service Netflix owes most its early success to ‘House of Cards.’ The hit US presidential drama raised the profile of Netflix tenfold, as well as bringing in huge amounts of revenue. The show took Netflix onto another level and was a spring board for much of the success the entertainment service has seen.

Implementing franchises has never been more important. Warner Bros and Marvel have been the first to see the enormous potential in creating franchises. One film can turn into a series, using the same actors and themes, effectively bringing in an audience and then maintaining that audience throughout the course of its life span. Marvel studios are the biggest example of how franchises can work. Before the story involving the ‘Avengers’ Marvel were a relatively small studio, but Disney saw some of the huge potential despite the use of some comic book characters deemed not ‘popular enough’ for the big screen. After the help from Disney, Marvel have created arguably the biggest film franchise currently out. The model has also seen success with Warner Brothers developing something similar with the DC comic book world.

Franchises can be a risky business however. Other studios have tried use a similar business model but have seen their sequel films take a hit. The original ‘saw’ film was a huge hit, amongst critics and fans, whilst also taking in a hefty profit. After initially gaining a strong fan base, as well as further expanding their merchandise, including a roller coaster ride, the franchise took a hit after making too many uninspiring sequels. Twisted Studios suffered massively from the lack of interest in their recent ‘Saw’ films.

The lifespan of a studio does not depend on the success of the films they make. Disney took a hit this year, but that doesn’t necessarily mean that they have been producing any bad movies. Huge amounts of Disney shares fall into other brackets. They have a TV network and cable channel. A bad year for Disney could simply represent a poor economic climate. With so much economic uncertainty in the world, it’s easy to see why a huge corporation in the entertainment industry could take a hit.