Extra regulation will kill OTT industry

The ministry officials flagged obscenity and violence in OTT content and said that even in a June meeting the streaming firms were asked to proactively oversee that the Code of Ethics for online curated content under the IT Rules, 2021, was adhered to by all the platforms

It’s easy to see why Sunder Aaron, co-founder and managing partner at the content production company Locomotive Global Inc, is bullish on India. The company’s web series “Rana Naidu” on Netflix has been a big hit. It has other projects in the pipeline including a crime series and an ambitious romantic drama. “We have the ability to do something which can have global impact,” says Aaron. A new PwC report endorses his faith in the sector slated to generate $ 3.5 billion in revenue by 2027 with a growth rate of 14.32%.

Extra regulation will kill OTT industry

However, despite the positive outlook for the sector, OTT platforms in India are currently stressed out. Production houses like Aaron’s and streaming services like Amazon Prime Video, Netflix, Disney+Hotstar and SonyLiv, among others, are anxious about the information and broadcasting ministry’s new proposal suggesting the addition of another layer of scrutiny for OTT shows.

In a meeting with representatives of OTT services on July 18, I&B minister Anurag Thakur mooted the idea of setting up an independent supervisory body to approve all scripts for various platforms before being produced. The ministry officials flagged obscenity and violence in OTT content and said that even in a June meeting the streaming firms were asked to proactively oversee that the Code of Ethics for online curated content under the IT Rules, 2021, was adhered to by all the platforms.

The government has sought the industry feedback on the proposal in 15 days’ time.

Streaming services are obviously frazzled. It’s not clear if they are mulling a collective response to the government but they claim that at the meeting they clarified that the platforms are already following the required rules in rating content by age, displaying content descriptors, and implementing kids’ profiles and parental locks. They address and resolve most grievances received at the platform level and only a few complaints reach the self-regulatory bodies, they said.

Clearly, an additional layer of script scrutiny is unviable. For starters, the number of complaints received in comparison to the vast library of content held by various platforms is minuscule. “I would say that the self-regulation model is working,” said the executive of a broadcasting company that owns a streaming platform.

Secondly, sending each programme script to a supervisory body will not just be a logistical nightmare, it is hard to imagine rival platforms sharing their scripts with a common group of people.

The bigger problem is the impact such inspection will have on creative freedom of a medium which is ready to take off, is highly competitive, and has a plethora of quality content from across the world.

Speaking on condition of anonymity, the head of a production company said everybody in the content business is already cognizant of the government’s influence. “Production houses and platforms have legal teams that go through the material and scripts through the finished episodes. We are very careful and the platforms are very aware too,” he said.

“Getting into this certification zone for streaming content is very troubling and will ruin the growth that we are seeing and the dynamic we have in India right now,” he said, adding that the country is teeming with artistes and storytellers across languages waiting to be tapped for great content.

Given the constant pressure from the government, creators will end up with a narrow band of subject matter and treatment of shows and movies. “You will also end up with a favoured group of artistes who are the ones who are allowed to work freely in the market,” the person said.

The streaming industry has long argued that OTT is a “pull” platform and not a “push” platform like TV. On a streaming platform you can control what you wish to watch and all content is age-gated and comes with descriptors.

The government has mooted the idea at a time when it has been talking of building India as the centre of high-quality global content. Last year, expressing pride in India’s participation as the Country of Honour at the Cannes festival, the Prime Minister said India has the potential to become the content hub of the world. The I&B minister reiterated the point at IFFI (International Films Festival of India) last November where he spoke of establishing India as a global content hub. He called India a land of stories which also had skilled manpower.

The irony of such policy flip flop isn’t lost on the entertainment content creators.