WHAT IS A DISTRIBUTION PFD AGREEMENT? (In the Entertainment industry.)

Distribution PFD Agreement / Photo Credit: Prof P V

WHAT IS A DISTRIBUTION PFD AGREEMENT? (In the Entertainment industry.)  

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What is a Distribution PFD agreement?

PFD stands for Production/finance/distribution. This is an agreement between a studio and a production company. The agreement basically states that the studio will hire the production company to produce a particular film and pay them a substantial producer fee. In return, the film will finance and distribute the film. The studio has full control and ownership of all rights pertaining to the film in perpetuity throughout the world. PFD agreements vary in terms of the back-end deal the production company has with the project.

In a production/finance/distribution agreement, commonly referred to as a “PFD agreement,” the distribution company (e.g., a studio or VOD company) hires a production company to produce a film, and the distribution company agrees to directly finance production of, and to distribute, the film. Under these agreements, the production company is little more than a dependent agent of the distribution company and is subject to the complete control of the distribution company on all aspects of production. The grant of distribution rights to the distribution company is always of all rights in perpetuity throughout the world, making the distribution company the complete and absolute owner of the film. The production company often retains a theoretical interest in net profits, if any, generated by the film, and often not even that. 

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Distribution PFD Agreement / Photo Credit: Prof P V