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| Company type | Subsidiary |
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| Founded | 1986; 39 years ago (1986) |
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| Defunct | November 9, 2001; 24 years ago (2001-11-09) |
| Fate | Closed |
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Propaganda Films (stylized asPЯOPAGAИDA FILMS) was a production company founded inLos Angeles in 1986 by American producerSteve Golin, Icelandic producerSigurjón Sighvatsson, English directorNigel Dick, and American directorsDavid Fincher,Dominic Sena, and Greg Gold.[1][2] Noted for itstelevision commercials andmusic videos, it grew to be responsible for almost a third of all music videos produced in the U.S. within four years of its creation.[3]
As the name suggests, theproduction company was founded with the intent to focus on the medium of films; those that Golin and Sighvatsson couldn't get enough financing and creative control for elsewhere. However, in order to create financial stability, the company focused on a base of music video production.[3] The company also branched off into producingtelevision commercials, which along with music videos were considered inherently lesser quality than films. Gold later commented:
We were the first company that wanted to apply the principals of the commercial industry to music videos... [and] we wanted to take the aesthetics of music videos and apply them to commercials.[4]
In addition to revenue from music videos and commercials, Propaganda entered into a deal in 1988 withPolyGram which meant that the Dutch media company would pay for Propaganda's film costs in exchange for part of the film revenues.[3] It was during this era that Propaganda made connections with the likes ofDavid Lynch, who they hired to directWild at Heart. They also produced Lynch's television showTwin Peaks.[3]
The initial deal with PolyGram, which involved selling them 49% of Propaganda,[4] was intended to bring about financial strength and expanded opportunities. However, Golin and the others realized they needed even more resources to continue making films.
Propaganda Films was fully acquired byPolyGram Filmed Entertainment in 1991.[5] This brought a decrease in creative control, and the budget allocations for films were tightly scrutinized by PolyGram. Nigel Dick later said:
We wanted to do good work and spend a little of the budget, the markup, on a better director of photography or shooting five more rolls of film. When the PolyGram bean counters came in, we didn't get that. 'Where's the markup gone?' That's what we got.[4]
The nineties saw Propaganda produce films of varying success, includingCanadian Bacon,The Game, andBeing John Malkovich.
They also continued producing popular commercials (such as the"Aaron Burr"Got Milk? commercial)[6] and music videos for the likes ofMadonna andMichael Jackson.[7]
In 1998 PolyGram was sold toSeagram, which folded part of PolyGram intoUniversal and sold the commercial, music video, and management divisions of Propaganda to SCP Equity Partners.[4] Its original version of the film division was sold toBarry Diller'sUSA Films, which soon subsequently folded.[8]
The management division was subsequently sold to a group led bySundance Group executive Gary Beer around the same time.[9] The management division reopened a new version of its film division under the leadership of formerPhoenix Pictures executive Rick Hess and Trevor Macy in late 1999.[10] By 2000 Sighvatsson had left forLakeshore Entertainment and Golin had foundedAnonymous Content, who had a pact with USA Films, which was one of the companies the original film division of Propaganda had folded.[11][12]
Around the same time, producerPaul Schiff joined the film division of the company.[13] In 2000, the company had struck a deal with Mandolin Entertainment.[14] Also that year, the company secured a deal withConstantin Film to make its joint production venture under the name ProCon Films, who was quickly folded in October 2001.[15][16] The company went defunct in November 9, 2001 amidst a decline in the advertising business.[17] Several members joined RAW Entertainment[18] and Catch 23 Entertainment[19] after the company folded, while member Rick Hees joined theCreative Artists Agency.[20]
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