Because the distribution company does not advance the cost of production, the production company must obtain a loan to finance production, and the lender will almost always require a completion guarantee to guarantee completion and delivery of the film to the distribution company in order to trigger payment.
The negative pick-up deal is similar to a PFD agreement except that the distribution company, again typically a studio or VOD company, agrees to pay a fixed price upon delivery of the film. In film production, a negative pickup is a contract entered into by an independent producer and a movie studio conglomerate wherein the studio agrees to purchase the movie from the producer at a given date and for a fixed sum.
WHAT IS A NEGATIVE PICK-UP AGREEMENT? (In the Entertainment industry.)īruce Bisbey…please follow me at: or thank you.
