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PRODUCTION DEAL

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A deal, also called a "master purchase deal," involving an independent producer and a record company. The producer provides a completed master, or masters, to the record company. In return, he is promised, via contractual agreement, certain compensation for such master(s), e.g., a guaranteed release with a flat royalty on units sold (or percentage of units sold) and reimbursement for production costs. Or, less frequently, a flat cash payment is made. See Cross-links: PRODUCTION CONTRACT, CUT-IN, MASTER, PRODUCER under "Producer Royalties."

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