How OTT Licensing Deals Are Structured - Rights, Windows, MGs & Revenue Share

Streaming platforms don’t just press “play” — behind every show or movie you watch there’s a licensing deal.

List of all OTTs

These contracts decide who pays whom, where a title appears, for how long, and how revenue is split. If you’re a creator, producer, distributor, or curious viewer, this guide explains the structure of OTT licensing deals in clear language — with real examples, common clauses, and practical tips you can use right away.

The Big building blocks: rights, windows and exclusivity

At the core of any OTT deal are three simple questions: What rights? Where? When?

• Types of rights: Digital streaming rights can be split into SVOD (subscription), AVOD (ad-supported), TVOD (transactional), FAST/linear and more. Platforms choose the rights they need depending on their business model.
• Windows: The “window” is the time frame when a platform can show content. A common sequence is theatrical → pay TV/PPV → OTT (first window on a single platform) → free TV/AVOD or library rotation. Shorter theatrical-to-OTT windows became common in 2024–25 to capture streaming momentum. 
• Exclusivity: Exclusive deals give one platform sole streaming rights (often for a premium). Non-exclusive licenses let producers sell the same title to several platforms or territories, which can raise total revenue but reduce per-deal value.

A platform may buy global SVOD rights for 12 months exclusively — meaning only that streamer can show the film worldwide during that period.

How money moves — common commercial models

Two payment styles dominate: minimum guarantee (MG) and revenue share — plus hybrids.

• Minimum Guarantee (MG): The platform pays a fixed advance to the content owner. This is safe for producers because MG is paid regardless of how many views the film gets. MGs vary: indie films see smaller MGs; big theatrical hits can command large sums.
• Revenue Share / Back-end: The platform pays the producer a share of ad revenue or subscription-derived revenue, often after a threshold. This aligns incentives but is riskier for producers.
• Hybrid deals: MG + performance bonuses are common — a base MG plus extra payments if the title reaches milestones (views, hours watched, top-10 placement).

Negotiations often hinge on a title’s box office, cast, franchise value and marketing plan. Big names = higher MGs and stricter promotional commitments.

Important contract clauses

Contracts are long — but certain clauses matter most:

• Territory: Defines where the platform can stream (India only, South Asia, Global). Narrower territory = lower fee, wider = higher fee.
• Term & holdbacks: How long the platform keeps the rights, and what rights are withheld (for example, delaying free TV until after OTT window). Holdbacks protect theatrical or pay-TV revenue.
• Exclusivity vs non-exclusivity: Exclusive rights cost more; non-exclusive can let you sell to multiple buyers.
• Deliverables & quality specs: File formats, subtitles, dubbing, closed captions, metadata, DCP vs mezzanine files — platforms are strict and will reject content if specs aren’t met.
• Moral & legal warranties: Producers must guarantee the work doesn’t infringe IP, has clearances for music, footage, and releases from cast/crew.

Co-productions, pre-sales & output deals — different ways to fund content

Not all content is sold after it’s finished. There are alternative deal types:

• Co-production: The platform contributes to production costs and gets ownership/rights. This reduces producer risk but often involves creative input from the platform. 
• Pre-sales: Producers sell rights to platforms or territories before finishing the film — useful to finance the shoot. WIPO and industry guides discuss this as a long-standing practice.
• Output deals: Platforms sign multi-year agreements to buy all or a set number of titles from a studio/producer (useful for steady revenue). These often include volume discounts and first-look terms. 

Metrics, reporting and audit rights — how platforms measure value

Platforms care about engagement (hours viewed, completion rate, new subscribers acquired). Contracts typically include:

• Reporting cadence: Monthly viewership reports and revenue statements.
• Audit clauses: Producers can audit platform statements (rarely used, but present in big deals).
• Performance bonuses: Milestone payments for reaching top-10 lists or subscriber-attribution targets.

Dubbing, localization & marketing commitments

To make regional films pan-India, platforms often require dubbing/subtitles and marketing support:

• Localization: Platforms may request or fund dubbing into other Indian languages; sometimes the cost is shared. This widens audience and can justify higher license fees.
• Marketing: The license may include platform marketing commitments (featured placement, push notifications). Better placement = higher viewership, so this is a critical negotiation point. 

OTT licensing can feel like a maze — but the map is simple: know the rights, know the money model, and can nail the deliverables.