A more thorough explanation:

A pay-or-play contract is a type of agreement between two or more parties that creates enforceable obligations. In this type of contract, one party agrees to either pay a specified amount or perform a specific action, while the other party agrees to either accept the payment or allow the action to be performed.

For example, a musician may sign a pay-or-play contract with a concert promoter. The contract may state that the musician will receive a specified amount of money for performing at the concert, regardless of whether the concert is successful or not. Alternatively, the contract may state that the musician must perform at the concert, and if they do not, they must pay a specified amount to the promoter.

Another example of a pay-or-play contract is in the film industry. A studio may sign a contract with an actor that requires them to either perform in a specified number of films or pay a penalty if they do not.

These examples illustrate how a pay-or-play contract creates enforceable obligations for both parties. The contract specifies what each party must do, and if they do not fulfill their obligations, there are consequences. This type of contract is commonly used in industries where there is a high level of uncertainty or risk, such as the entertainment industry.