OTT Agreement: Understanding the Basics

Over-the-top (OTT) services have become increasingly popular in recent years, offering viewers access to streaming content directly over the internet. With the rise of these services, content providers have found themselves in the position of negotiating OTT agreements with cable and satellite providers, as well as with individual platforms such as Netflix and Amazon Prime Video.

So what exactly is an OTT agreement, and what does it entail? Let`s take a closer look at the basics.

Definition of an OTT Agreement

An OTT agreement is a contractual agreement between a content provider and a distributor that outlines the terms and conditions for distributing content over the internet (as opposed to traditional cable or satellite TV delivery). These agreements are typically negotiated between the two parties and may include a variety of terms and conditions, such as pricing, licensing, and distribution fees.

Key Terms in an OTT Agreement

While the specifics of an OTT agreement can vary depending on the parties involved, there are several key terms that are generally included in these contracts. These may include:

– Licensing fees: The content provider may charge a licensing fee to the distributor for the right to stream their content.

– Distribution fees: Some agreements may include a distribution fee, which is a percentage of revenue or a fixed amount that the distributor pays to the content provider.

– Geographical restrictions: Content providers may restrict the distribution of their content to specific regions or countries.

– Length of agreement: The agreement may specify a set length of time for which the content will be available for streaming.

– Technical requirements: The agreement may include technical requirements for how the content is delivered and streamed, such as encoding standards or quality levels.

Benefits of an OTT Agreement

For content providers, an OTT agreement can offer several benefits. By distributing content directly over the internet, they can reach a wider audience and gain greater control over how their content is distributed and monetized. Additionally, by negotiating with individual platforms and distributors, they can potentially increase their revenue through licensing and distribution fees.

For distributors, an OTT agreement can also offer benefits, such as access to a wider range of content and the ability to offer more personalized viewing options for their subscribers.


As the popularity of OTT services continues to grow, OTT agreements are becoming increasingly important for content providers and distributors. By negotiating these contracts, both parties can benefit from increased revenue, wider distribution, and greater control over how their content is delivered and consumed.

As a professional, it`s important to understand the basics of a variety of topics, including OTT agreements. By staying up-to-date on industry trends and best practices, you can provide valuable insights and guidance to your clients and help ensure their content is optimized for success in the ever-changing world of online media.