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What is an Output Deal?

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This agreement commits a studio to acquire the rights to a specified number of motion pictures from one production company. Essentially this is a pre-sale agreement for a number of unspecified films. The distributor or licensee believes in the abilities of the production company that it is willing to risk paying for the films before they’re produced. This benefits both parties as the production company is guaranteed to have a buyer/distributor for their films before they go into production, and the studio will have no competition for the distribution rights and they’ll be able to get them at a low price.

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