The end of its distribution agreement remains a blow to Netflix, which is spending about $6 billion in content in 2017. The vast majority of them – according to Forbes estimates – are focused on licensing films and television shows from the libraries of entertainment giants such as Disney, which grant the rights to their production for a fee. With the launch of its own streaming service, Disney will terminate its distribution agreement with Netflix for new publications, starting with the 2019 theatrical offerings. This means that the films that will be released in 2019, including Toy Story 4 and the sequel to Frozen, will only be available on their own streaming service in the US – not netflix. If your business depends on licensing and distribution agreements based on the territory, it is important to think about how your agreement covers your rights and obligations regarding the defined territory. Here are some guidelines to save yourself from the current problems related to the Netflix content license. However, as appears to be the case with Netflix, it may be of greater commercial interest to allow the licensee to attempt to remedy the infringement rather than terminate the agreement and interrupt the distribution of the licensee`s product in the territory. A content owner can license programming on multiple streaming platforms such as Hulu or Amazon Prime Video, meaning that licensing agreements between parties are not exclusive. Licensing agreements that are not exclusive are generally less expensive to obtain because non-exclusivity reduces the value of the content. However, the problem of offshore transactions is not only included in Netflix and could occur in almost all licensing and/or distribution agreements granting rights to a taker in a given „territory.“ This is a fairly standard obligation under licensing and distribution agreements that the taker cannot distribute to customers outside the territory. Subscriber fees, combined with raising capital through new debt, allow Netflix to invest in content, either through domestic production or through licensing agreements with content providers. It is therefore important that any company that enters into such agreements respects the rights and obligations of distribution in a given territory, so that both parties can ensure that their commercial interests are protected.