Content Licensing
The practice of granting permission to use copyrighted content (film, TV, music) in exchange for fees or royalties.
Definition
Content licensing is the business of allowing others to use your intellectual property under specified terms. In entertainment, this includes licensing films to streaming platforms, TV shows to international broadcasters, music to films or ads, or clips to news outlets.
Licensing generates revenue from content after initial release, creating long-tail value. Rights are typically licensed non-exclusively (multiple licensees) or exclusively (one licensee) for specific territories, timeframes, and uses. Complex licensing deals involve different rights for different windows and regions.
Why It Matters
Licensing turns content into renewable assets. A film licensed to a streaming platform generates revenue years after theatrical release. A TV series licensed internationally creates income from territories where it never aired originally. Music licensed for commercials or films generates additional publisher and writer income.
Understanding licensing is essential for content creators because licensing revenue often exceeds initial release revenue over a property's lifetime. Smart licensing strategies maximize total content value across all possible uses and territories.
Examples in Practice
"Friends" generates $1 billion+ annually from international licensing decades after the show ended, demonstrating the long-tail value of popular content.
A documentary filmmaker licenses their film non-exclusively to educational distributors, streaming platforms, and broadcast networks—each generating revenue without limiting the others.
A music supervisor licenses a catalog song for a film trailer, creating a viral moment that drives streaming and leads to additional licensing opportunities worth more than the original sync fee.