Understanding International Distribution Rights for Asian Content

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Distribution rights are where ambition meets reality in international content deals. Whether you're a Japanese studio looking to license content to the US or an American company acquiring Asian IP, understanding the rights landscape is critical to avoiding expensive mistakes.

The Fragmentation Problem

Unlike domestic deals where you might acquire "all rights," international distribution typically involves carving up rights by territory, platform, and window. A single piece of content might have:

• Theatrical rights for North America

• Streaming rights for English-speaking territories

• Free TV rights for specific countries

• Home entertainment rights that may or may not include digital

• Merchandise and licensing rights are handled separately

This fragmentation creates opportunity but also complexity. I've seen deals fall apart because parties assumed they were negotiating for more comprehensive rights than were actually on the table.

What "North America" Actually Means

When a Japanese studio sells "North American rights," both parties need to clarify exactly what that includes. Does it cover Canada? Is it English-language only or does it include Spanish-language rights for the US Hispanic market?

These details matter enormously for valuation. English-language streaming rights for the US are worth far more than English Canada alone. But many Japanese rightsholders don't realise how these distinctions affect deal terms until they're already negotiating.

The Streaming Era Has Changed Everything

Traditional distribution followed predictable windows: theatrical, then home entertainment, then pay TV, then free TV. Streaming has collapsed these windows and created new questions about exclusivity and holdbacks.

When you license content to Netflix or Amazon, are you granting them exclusive streaming rights? For how long? Can you simultaneously license free TV rights? Can the content appear on AVOD platforms after the SVOD window expires? Every deal is different, and the standard terms are still evolving.

For Japanese rightsholders, this creates both opportunity and risk. The opportunity is that streaming platforms are hungry for content and willing to pay significant advances. The risk is that exclusive streaming deals might prevent you from building the broad market presence needed for successful merchandise and licensing businesses.

Holdbacks and Restrictions

Even when you've sold rights, various restrictions can limit what the buyer can actually do. Common holdbacks include:

• Geographic restrictions (can stream in the US but not Canada)

• Technological restrictions (linear TV but not streaming)

• Dubbing and editing rights (can subtitle but not create an English dub without approval)

• Merchandise and promotional usage

• Sublicensing rights

I've worked on deals where the buyer assumed they could create English-dubbed versions, only to discover that the right wasn't included and required separate negotiation with the original voice actors' union in Japan. These surprises delay launches and destroy margins.

The Merchandise Question

For character-driven IP, especially, merchandise rights are often more valuable than the content rights themselves. But Japanese companies frequently handle these separately from content distribution, creating coordination problems.

If a US streaming platform successfully builds an audience for your anime, but you've licensed merchandise rights to a different partner (or kept them in-house without US execution capability), you miss the critical moment when consumer demand peaks. Coordinating content and merchandise timing requires planning distribution strategies together from the start.

Due Diligence Is Everything

Before entering distribution negotiations, both parties need clear documentation of:

• Exactly what rights are available to the license

• What rights have already been licensed to other parties, and for what territories/windows

• What restrictions exist from unions, talent contracts, or underlying rights (music, etc)

• What master materials exist (4K masters? English scripts? Isolated music and effects tracks?)

I've seen deals collapse in final due diligence when buyers discover that critical materials don't exist or that previous licensing deals prevent the exploitation they planned.

Working With Experienced Partners

The complexity of international rights is exactly why working with experienced distribution partners matters so much. They know which questions to ask, understand how different rights interact, and can structure deals that maximise value while avoiding common pitfalls.

For Japanese companies, especially, having American partners who understand both the US market's expectations and Japan's business culture helps bridge gaps that sink less experienced deals.

The international distribution business is built on rights management. Master it, and you unlock value. Misunderstand it, and you'll spend years in disputes and miss opportunities.

About the Author: Doug Montgomery is the founder of Global Connects Media and a former Warner Bros executive specialising in international distribution and licensing. He has negotiated content deals across North America, Europe, and Asia for theatrical, home entertainment, and digital platforms.