Movies - Negative pickup deal

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	Movies - Negative pickup deal

In film production, a negative pickup is a contract entered into by an independent producer and a movie studio wherein the studio agrees to purchase the movie from the producer at a given date and for a fixed sum. Depending on whether the studio pays part or all of the cost of the film, the studio will receive the domestic, international, DVD and/or TV rights to the film, with net profits split between the producer and the studio.

A canny producer will usually cover all his costs and even make a small profit before production has even begun. But financing of the production up until its completion date is the responsibility of the producer - if the film goes over budget, the producer must pay the difference himself or go back to the studio and renegotiate the deal. This happened on the films Superman
, The Empire Strikes Back and Never Say Never Again
.

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