Negative pick-up

• A. When a studio agrees to purchase a film from a producer on a given date for a fixed sum after the movie is made
• B. A form of collateral
• C. A deferment
• D. At festivals

Answer: (A)

A negative pickup is a financing arrangement where a distributor agrees to buy the finished film from the producer on a specified date for a fixed price. The producer uses this post-completion sale commitment to secure production funds, since the guaranteed sale provides revenue predictability once the movie is completed. The defining feature is that the purchase occurs after completion, with a set price, which differentiates it from deals made before production or other forms of financing. The other options don’t capture this post-production sale aspect as clearly: it isn’t primarily about collateral, it isn’t simply a deferment of payment, and it isn’t tied to festival appearances.