How do production companies make money?

[Neckmancaleb]

whats the difference between a production company and studios. i know studios distribute the film, but what do production company do. how do they make money? who or how do they fund the movies?

[roscoegino]

Prodcos assemble the elements (talent, investors, crew, rights, etc.) together for the making of a motion picture or tv show. They can start out with $0 or they can start out with millions in seed money from various sources. They make the bulk of their money off the revenues or gross of the finished product. Much of that money is used to finance future projects.