The thesis evaluates the  competition law and new legislation adopted under the Digital Single Market Strategy framework and itf effect on the principle of copyright territoriality and current territorial licensing practices. The interest of consumers to access cultural content, the interest of right holders to exploit their work in exchange for renumeration and interest of distributors to secure a broader audience and high income are interests which are taken into account. The thesis discusses how the EU legislation reflects and balance these interests. The thesis also discusses the role of principle of copyright territoriality for business and financial practices in the audio-visual industry.