Understanding the OTT Content Licensing Landscape

You may have noticed that Over-The-Top (OTT) platforms have greatly changed the way people watch shows, films, and other content. For you, this surge in streaming activity opens doors for sharing your work with a global audience. However, there is a key element you should be familiar with when you think about entering the OTT content space: content licensing. It defines who holds certain rights, how those rights are managed, and what conditions govern the use of a piece of work.

Why Licensing Matters in OTT Content

Licensing ensures that you're not infringing on another party's rights and sets the boundaries for what you can do with material. A license on a piece of content might allow for streaming only in certain regions, only for a specific amount of time, or only under particular subscription models.

Proper licensing can also enhance revenue for you, as a producer. You gain additional income by letting streaming apps worldwide feature your film, documentary, or series under clear legal terms, and those terms keep you out of any conflicts over ownership or distribution rights.

Understanding Ownership and Rights

Licenses build on intellectual property rights. If you produce your own material from scratch, you likely hold these rights. Alternatively, you might secure them through agreements that spell out how you can use material that's been created by someone else.

Sometimes this isn't simple and straightforward. Music rights, for instance, can be quite complicated if you plan to include a popular song in your show. You may need to obtain synchronization rights for the recording or the composition, depending on your situation, but no matter the scenario, every piece of music, footage, or image you use in your content must be properly licensed.

Territorial and Time-Based Licensing

Many distribution deals confine streaming rights to certain areas; sometimes, these deals limit when you can show the content. Commonly, you'll only be able to show the content for a window of a few weeks or months. These conditions often seem arbitrary, but there are reasons for them.

For example, another broadcaster may have already secured exclusive rights in a certain location, in which case your deal can't be competition by overlapping. In other cases, a distributor may insist on a tiered release schedule so they premiere the film in theaters in a certain region before you start streaming it. Whatever the cause, it's important to read the details of all conditions closely.

Monetization Models and Licensing

If you want to earn income from your content, you have to match the right licensing approach with the right payment model. Perhaps you prefer to keep your productions behind a subscription paywall, or maybe you want a transactional model where viewers pay per view. Either approach can be formalized through license agreements that set revenue-sharing rules, payment thresholds, and data reporting responsibilities. But be aware that many license deals also put some boundaries on how ad placements are allowed to function.

Whatever content you're putting out there, we can help you distribute, monetize, market, and even develop apps for various platforms, all in one convenient place. Contact us at Lightcast.com now for a free demo.