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What is a Negative Pick-Up?

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This is similar to a PFD agreement, except the film company (studio or distributor) will pay a fixed price for the completed film, and it is up to the production company to finance the budget for the film. Because the film company is not financing the film and doesn’t take on any risk toward the end product, the production company is able to retain more creative control over the project and charge more for the film than if it were made under a PFD agreement. This is typically what happens at major film festivals. Studios and movie distributors will attend these festivals, watch completed films, decide which of those films they want to purchase for distribution in their territory and then compete with other companies for the distribution rights. The purchase of these rights is known as a negative pickup.

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