At this time it is not clear which companies will prosper and which will crash and burn. If you grant exclusive rights to a company that goes out of business, your Internet distribution rights will be an asset of the company and may be tied up in bankruptcy proceedings. It may take considerable effort and expense on your part to reacquire those rights. Consequently, it is a good idea to have the Internet distributor grant you a security interest so that you will have preference over unsecured creditors. Make sure to register the security interest to perfect your rights.
Territory becomes an almost meaningless term when applied to Internet distribution.
Anyone with a computer anywhere in the world can log onto the Internet and download data from computer servers wherever they are located. The expense of shipping a product internationally becomes irrelevant when the product is Netcast. Moreover, distributing your film worldwide subjects you to the laws of many different nations. As a practical matter, it may be difficult for a prosecutor in a foreign land to obtain jurisdiction over you, but if one day you visit such a country, you could find yourself the subject of legal proceedings. Many producers erroneously assume that if an American producer makes an American film, American law will determine ownership and rights to the film.