Commercial
Distribution Agreement
Definition
A B2B contract under which a studio or aggregator licenses content to an operator or platform, covering territories, commercials, and exclusivity.
Key takeaways
- A distribution agreement is a B2B contract under which a studio or aggregator licenses content to an operator or platform.
- Typical terms cover which games, which markets, the revenue share, any exclusivity window, certification duties and reporting obligations.
- Exclusivity has become a major lever: operators seek windows on premium releases, and studios use exclusivity to win better commercials.
Why it matters
Distribution agreements are the commercial backbone of the B2B content layer. The typical agreement covers which games are licensed, in which markets, at what revenue share, with what (if any) exclusivity period, with what certification responsibilities, and with what reporting obligations on both sides. Negotiation is often involved because the studio wants broad distribution at high revenue share and the operator wants exclusive content at low revenue share, and the bargaining position depends on the relative size and content quality of each party.
Exclusivity has become a major lever. Major operators negotiate temporary exclusivity windows on premium new game releases as a competitive differentiator; major studios use exclusivity as a way to extract higher commercials from the biggest operators. The terms of these agreements are commercially sensitive but the patterns leak through industry coverage as exclusivity announcements and content launches.
Frequently asked questions
How long are typical distribution agreements?
Multi-year is standard, with renewal options. Long enough to amortise integration cost; short enough to allow renegotiation as commercial dynamics change. Three to five years is a common window.
What's the difference between distribution agreements with studios versus aggregators?
A studio agreement is bilateral, covering that studio's specific content. An aggregator agreement is one-to-many, covering whatever content the aggregator has rights to distribute. Aggregator deals are simpler operationally but typically deliver less favourable commercials than direct studio relationships for high-volume operators.