The financial parameters that are typically used in VOD (Video-On-Demand) and live TV content licensing can vary depending on the specific terms negotiated between the content owner/licensor and the licensee. However, some common parameters may include:
- License fee: The amount of money that the licensee pays to the licensor for the right to distribute the content on their platform. This fee may be a one-time payment or a recurring fee.
- Revenue share: In some cases, the licensee and licensor may agree to split the revenue generated from the distribution of the content. This can be done on a percentage basis, with the licensee receiving a certain percentage of the revenue generated.
- Territory: The license may be limited to a specific geographical region.
- Duration: The length of time that the licensee has the right to distribute the content.
- Minimum guarantee: A minimum amount of money that the licensee agrees to pay the licensor, regardless of how much revenue is generated.
- Performance metrics: The licensee may agree to certain performance metrics, such as a minimum number of views or subscriptions.