Sub-Licensing

Explanation

Sub-licensing occurs when a primary rights holder or licensee grants a portion of their content distribution rights to another party. In streaming, sub-licensing typically happens in two scenarios. First, a studio licenses a film to Netflix globally, but Netflix sub-licenses the streaming rights in specific territories to a local broadcaster or streaming service it doesn't operate in. Second, a channel partner arrangement (like Amazon Prime Video Channels or Apple TV Channels) functions as sub-licensing — the primary streaming platform passes rights access to the add-on channel at a revenue share. Sub-licensing agreements require explicit authorization from the original rights owner — a licensee cannot sub-license without permission. Sub-licensing is also how sports leagues function at a regional level: the league sells national rights to a broadcaster, which then sub-licenses to regional partners.