PolyGram and decline (1991–2001)
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 by PolyGram 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, including Canadian Bacon, The Game, and Being John Malkovich.
They also continued producing popular commercials (such as the "Aaron Burr" Got Milk? commercial)[6] and music videos for the likes of Madonna and Michael Jackson.[7]
In 1998 PolyGram was sold to Seagram, which folded part of PolyGram into Universal 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 to Barry Diller's USA Films, which soon subsequently folded.[8]
The management division was subsequently sold to a group led by Sundance Group executive Gary Beer around the same time.[9] The management division reopened a new version of its film division under the leadership of former Phoenix Pictures executive Rick Hess and Trevor Macy in late 1999.[10] By 2000 Sighvatsson had left for Lakeshore Entertainment and Golin had founded Anonymous 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, producer Paul 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 with Constantin 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 on 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 the
