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[Music] so this is sky Morton this segment is on distribution agreements and the first thing I wanted to take you is the different types of distribution agreements so that you understand the language in the in the categories Im going to go from the most control to the least control by the distributor starting at the top is whats called a PFD agreement in production finance and distribution agreement thats when a studio completely controls and owns the project and hires a third party to produce it for the studio but the studio finances it it owns everything the studio distributes it and often you see a PFD agreement simply as a way to to isolate the studio from one or more of the Guilds the truth is when you hear PFD just think studios is completely moving down the next one whats called a negative pick up a negative pick up agreement is where the film company or the studio agrees to pay for the full cost of the film on delivery of the film and the producer has to go finance that of
