Urna Semper

Instructor’s Name
13. March 2020

Production Company Profile

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 “Annapurna” is an American film production company founded in 2011 by
Megan Ellis. It is based in Los Angeles, USA, and specializes in commercial yet
critically acclaimed drama films.

1. Background & Personnel

In April 2nd, 2011, Megan Ellis, the daughter of billionaire Larry Ellis (chairman of
Oracle Corporation), founded her production company “Annapurna Pictures”. Megan
Ellis named the company after Mount Annapurna in Nepal, which she hiked.

1.1 Beginnings

Megan Ellis attended film school at the University of Southern California, known for
their prestigious film program. She began as a career as a boom operator, but soon
started going into film producing, participating in the production of low-budget films
that failed to garner critical or commercial success, such as “Waking Madison” by
director Katherine Brooks or “Main Street” starring Colin Firth. However, being the
daughter of a millionaire, she was able to sustain herself and keep on working as a
producer. Ellis’s big break happened when she became an investor in “True Grit”, a
film by the Coen Brothers. This film was critically acclaimed and earned 253 million
in the box office, against a 38 million budget. This business venture proofed to be a
turning point for Ellis because it jumpstarted her producing career and solidified her
name as a produced of commercial and critically acclaimed films. Due to the success
of this film she was also able to access much larger sums of money from her father.
The success of this film proved vital to establish her credibility as a film producer in
the Hollywood film industry, and allowed her to access new filmic projects.

After “True Grit”, Megan Ellis paired with other producers to invest and act as co-
executive producer in films such as “Catch.44” and “Lawless”. These films attracted
Hollywood talent such as Bruce Willis, Jessica Chastain and Shia LaBeouf. The fact
that these films were also well-executed genre film further cemented her credential as a

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film producer, and allowed her to earn enough revenue to establish her own
production company “ANNAPURNA Pictures”.

1.2 Annapurna Pictures

In its first year (2012), the company co-produced two massively successful films: “The
Master” by director Paul Thomas Anderson and “”Zero Dark Thirty” by Katheryn
Bigelow. Apart from being able to co-produce two films by two major Hollywood
directors, both films were also critically acclaimed and box office successes. Both films
earned numerous film prize nominations at film festivals and the Oscars.

2. The Company’s credo

“Annapurna” Pictures is known for producing critically acclaimed films by established
directors. Ellis makes sure to provide the director with all the necessary resources so
that they can comfortably execute their artistic vision. One example is the film “The
Master” by Paul Thomas Anderson. The director proposed a 35 million budget, and
was rejected by various major production companies such as Universal for being too
ambitious and not being marketable enough for a big audience. However, Ellis stepped
in and helped co-produce this film, which was a commercial success but cost the
company around 15million. It is important to note that Ellis’s father’s money allows for
the company to stay afloat. The film industry sometimes criticizes Ellis for being too
lenient and excessive with her film budgets. The fact that most of the companies film
are critically successful but do not always make a lot of money suggest that the
companies approach to producing focuses on investing in film as an art form,
sometimes neglecting the financial monetary return. Ellis wealthy background has
allowed her to continually invest high sums of money in films that do not always make
much money back in return. This fact differentiates “Annapurna Pictures” from other
film production companies in Hollywood, which cannot afford to lead their business in
this way for the following reasons:

1. The film industry as a business: While film is an art form, high-budget film are
very expensive to make. A film can be critically successful, but if the company is

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 not even able to break even with their project, that would be considered a failure
for the business. Most production companies don’t have that kind of investors
money (Ellis’s father) to fall back on, which validates Hollywoods’s criticism of
“Annapurna”. Therefore, while “Annapurna” is known for producing critically
acclaimed films that value originality, daringness, and experimentation with form,
they are also known as not always succeeding in making a profit off of their film
investments.

2. Calibrating quality and money: The film business in America does not have the
same production system as European countries such as Germany or France, where
money can come from various sources such as cultural investments, TV-Stations,
or through the Film Festival system, so American producers are much more
adamant about spending money on more “artsy” or avant-garde films that do not
cater to the conformity of the American public and formulaic reception standards.
That is why “Independent Film” in the U.S. is most of the time low-budget, so if
the film fails at the box office, there are no huge amounts of money lost. This
system has worked out for some critically acclaimed low-budget films such as
“Moonlight”, which won the Oscar for Best Picture in 2017. The reality of the
situation in America is that most of the times, alternative cinema and dramas do
not usually make a lot of money, even if they are critically acclaimed and win
awards. In conclusion, investing large amounts of money into projects that are
probably not going to be able to make a lot of revenue and and sustain the
company, speak to unclear business choices. It is important to mention that
Ellison's choice to promote and invest money into high-quality projects that have
artistic merit and are not just entertainment, is commendable within itself.
"Annapurna" shows that producing is not just about making money, but about the
responsibility of taking risks and pushing the medium further, opening the door for
well-crafted stories that demand the viewer's attention and steer clear from lazy,
crowd-pleasing blockbusters. "Annapurna "is one of the view American film
production companies that still fight against Hollywood's risk-opposed stance on
film production, which has largely abandoned auteur film, dramas, and genre films
for bombastic, easily digested movies.

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Some of the company's most successful films include "Her" by Spike Jonze",
"American Hustle" by David O. Russell" and "Phantom Thread" by Paul Thomas
Anderson", all of which have enjoyed critical acclaim and screen presence at film
awards and festivals.

3. Funding

"Annapurna" funding system relies on the money Ellis gets from her father, while also
working with other production entities to achieve the sum of money needed for a
budget. This is a unique case in Hollywood, where most money comes from studios
and corporate entities. Not only does her father's money suffuse the company's film
investments, but it also allows for the company to stay afloat admit financial hardship.
In 2018, the company suffered through a mass departure of executives and other
creatives. However, Ellison's father provided financial consultation by the best advisors
in the industry.

Through the companies ups and downs, Ellison became the only woman and fourth
person to be nominated for two Academy Awards for best picture in the same year,
while also winning the Woman in Motion Award at Cannes Film Festival.

4. The Future - A company in decline

According to various sources, "Annapurna" Pictures might be headed for bankruptcy.

After a couple of unsuccessful films at the box office, the company has lost a lot of
money. Here are some examples:

Detroit by Kathryn Bigelow: this drama about police brutality failed to enjoy the
planned success that earnest dramas that speak about complex social situations usually

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do. It also cost the company millions of dollars after a huge marketing spent that failed
to attract viewers,

Booksmart: According to Olivia Wilde, director of this film, "Annapurnas" marketing

strategy failed to bring people to the cinema, and its opening weekend only grossed 2.5
million.

The Siter's Brothers: This film earned only 18 million at the box office, against a 40
million budget

Apart from these films, insiders within the company have spoken about Ellison's
mercurial personality: she tends to disappear and be unreachable for days at a time,
then imposes extremely long working days on the company.

5. Future ventures

In February 2019, Annapurna and MGM created a joint distribution venture , which
will release both MGM's films and Annapurna's films under "United Artist
Releasing". One of the future projects will be "No Time to Die" the new James Bond
film, which is a safe choice that will probably make both companies a lot of money, as
Bond films have a great box office track record. This choice might help revitalize the
company. Also, Ellison's father, the billionaire Larry Ellison, has stepped in to help out
her daughter's company as she weathers the financial hardship.

All in all, if the company went bankrupt, it would prove to be a great loss for
independent film in the U.S.

At the moment, however, this is one of America's film production companies which is
suffering the most under budgeting issues.

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