Territory
A specific geographic region for which distribution rights are licensed separately.
Definition
In film distribution, a territory is a defined geographic region where distribution rights are licensed independently. Major territories include North America, UK, France, Germany, Japan, China, and others, each with distinct market characteristics and value.
Rights holders typically maximize revenue by licensing territories separately to local distributors best positioned to exploit each market, rather than single global deals.
Why It Matters
Understanding territorial licensing is essential for film financing and distribution strategy. Different territories command vastly different values, and structuring deals optimally requires market expertise.
Territorial deals also affect release timing, marketing approaches, and creative decisions as content may need adaptation for different markets.
Examples in Practice
A film might sell North American rights to one distributor for theatrical release, UK rights to another, and multiple Asian territories to various local companies. Each deal is negotiated independently based on market-specific factors.
Streamers have disrupted traditional territorial licensing by acquiring global rights, reducing territory-by-territory sales opportunities for many projects.