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Side Information (SI) generation is a key function in the DVC decoder, and plays a critical impact on the compression efficiency. This paper proposes an improved side information generation scheme of transform domain distributed video coding considering a novel content-based side information refinement technique, which is performed with the color and texture features to segment the side information into different regions with different reliance. Then the low-reliance regions' side information could be corrected by 3-D recursive search. In addition, an adaptive overlapped block motion compensation technique is implemented to improve performance on the base of results from the content-based approach. Experiments illustrated that a significant improvement of performance has been achieved by the proposed approach compared to the cases without it.