Claim: Universal is a major film studio in Universal City.

A major film studio is a production and film distributor that releases a substantial number of films annually and consistently commands a significant share of box office revenue in a given market . In the North American , Western , and global markets , the major film studios , often simply known as the majors , are commonly regarded as the six diversified media conglomerates whose various film production and distribution subsidiaries collectively command approximately 80 to 85 percent of U.S. and Canadian box office revenue . The term may also be applied more specifically to the primary motion picture business subsidiary of each respective conglomerate .   The `` Big Six '' majors , whose operations are based in or around the Los Angeles neighborhood of Hollywood , are all centered in film studios active during Hollywood 's Golden Age of the 1930s and 1940s . In three cases -- 20th Century Fox , Warner Bros. , and Paramount -- the studios were one of the `` Big Five '' majors during that era as well . In two cases -- Columbia and Universal -- the studios were also considered majors , but in the next tier down , part of the `` Little Three '' . In the sixth case , Walt Disney Studios was an independent production company during the Golden Age ; it was an important Hollywood entity , but not a major . Metro-Goldwyn-Mayer , United Artists , and RKO were majors .   Today , Disney is the only member of the Big Six whose parent entity is still located near Los Angeles -LRB- actually , on Disney 's studio lot and in the same building -RRB- . The five others report to conglomerates headquartered in New York City , Philadelphia , and Tokyo . Of the Big Six , Paramount is the only one still based in Hollywood , and Paramount and Fox are the only ones still located within the Los Angeles city limits , while Disney and Warner Bros. are located in Burbank , Columbia in Culver City , and Universal in the unincorporated area of Universal City .   Most of today 's Big Six control subsidiaries with their own distribution networks that concentrate on arthouse pictures -LRB- e.g. Fox Searchlight Pictures -RRB- or genre films -LRB- e.g. Sony 's Screen Gems -RRB- ; several of these specialty units were shut down or sold off between 2008 and 2010 . The six major studios are contrasted with smaller production and/or distribution companies , which are known as independents or `` indies '' . The leading independent producer/distributors -- Lionsgate Films , The Weinstein Company , and former major studio Metro-Goldwyn-Mayer -- are sometimes referred to as `` mini-majors '' . From 1998 through 2005 , DreamWorks SKG commanded a large enough market share to arguably qualify it as a seventh major , despite its relatively small output . In 2006 , DreamWorks was acquired by Viacom , Paramount 's corporate parent . In late 2008 , DreamWorks once again became an independent production company ; its films were distributed by Disney 's Touchstone Pictures until 2016 , at which point distribution switched to Universal .   The Big Six major studios are today primarily backers and distributors of films whose actual production is largely handled by independent companies -- either long-running entities or ones created for and dedicated to the making of a specific film . The specialty divisions often simply acquire distribution rights to pictures in which the studio has had no prior involvement . While the majors still do a modicum of true production , their activities are focused more in the areas of development , financing , marketing , and merchandising . Those business functions are still usually performed in or near Los Angeles , even though the runaway production phenomenon means that most films are now mostly or completely shot on location at places outside Los Angeles .   Since the dawn of filmmaking , the U.S. major film studios have dominated both American cinema and the global film industry . U.S. studios have benefited from a strong first-mover advantage in that they were the first to industrialize filmmaking and master the art of mass-producing and distributing high-quality films with broad cross-cultural appeal . Today , the Big Six majors routinely distribute hundreds of films every year into all significant international markets -LRB- that is , where discretionary income is high enough for consumers to afford to watch films -RRB- . It is very rare , if not impossible , for a film to reach a broad international audience on multiple continents and in multiple languages without first being picked up by one of the majors for distribution .