Obscenity ban sparks OTT industry shake-up; Netflix, Prime Video and others may tighten content checks
Govt’s ban on 25 ‘obscene’ OTT platforms may target fringe players, but it sends a loud regulatory signal to giants like Netflix, Amazon, and others to tighten compliance and tread carefully amid rising moral scrutiny.
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In a move that could fundamentally reshape how digital content is created, consumed, and regulated in India, the Ministry of Information and Broadcasting (MIB) has ordered the blocking of 22 OTT platforms, citing the streaming of obscene and sexually explicit content. While the affected platforms, such as Ullu, Rabbit, and others, cater mainly to tier 2 and tier 3 audiences and are considered niche or fringe players, the government’s sweeping action has left the broader OTT industry rattled.
The decision, made with the backing of multiple ministries, marks a significant shift in the government’s posture, from advisory to enforcement.
Also Read: Breaking: Govt bans OTTs like Ullu, ALTT, Desiflix, Big Shots for showing soft porn content
Legal experts, policy commentators, and media entrepreneurs believe this is not an isolated administrative act but part of a broader, coordinated effort to tighten content regulation across digital platforms.
Sourya Banarjee, Associate Director – Public Policy Comms at Jajabor Brand Consultancy, points out that platforms like Ullu exist precisely because they serve a large, paying audience in semi-urban India.
“Ullu alone has over 27 lakh paying subscribers. Banning such apps doesn’t erase demand, it pushes it underground. That’s a bigger problem. The audience will move to less regulated, potentially unsafe platforms,” he said.
He also warned that though big platforms like Netflix, Hotstar, or Prime are not directly affected today, the sentiment driving these bans has also been used in the past to target them for 'destroying Indian culture'.
This sentiment is echoed by several others in the legal and media landscape. Sonam Chandwani, Partner at KS Legal, noted that while the banned platforms are relatively small, “this move creates a precedent that larger OTT platforms cannot ignore.”
The regulatory environment, she said, is shifting towards tighter oversight, and companies like Netflix and Amazon Prime would be wise to reassess their content curation standards to avoid future risks under laws like the IT Rules, 2021.
India’s OTT ecosystem, which includes over 40 major and minor platforms, is currently one of the fastest-growing in the world. According to PwC, the CAGR for the Indian OTT market is an impressive 14.32% from 2023 to 2027, far surpassing the global growth rate of 8.4%. The market is poised to double, soaring from $1.8 billion in 2022 to a whopping $3.5 billion by 2027, with platforms like Amazon Prime Video and Netflix amassing millions of subscribers, as they invest heavily in India-specific content.
Yet, even these global giants are now sensing the pressure to recalibrate their content strategy.
Dinesh Jotwani, Co-Managing Partner at Jotwani Associates, said the bans were “a clear regulatory signal to the entire industry.”
While bigger platforms generally have robust moderation systems, they are not immune from scrutiny, especially under new laws like the Bharatiya Nyaya Sanhita (BNS), 2023, which includes provisions around public morality.
“The government is indicating that decency standards will now be more rigorously enforced—formally or informally,” Jotwani said.
For many in the industry, the issue is not whether vulgar content should be regulated—it’s how.
Vineet Recriwal, CEO of The Native, said the message was clear: all OTT players should revisit their content filters. “It’s not necessarily a warning, but it’s definitely a nudge. The regulatory gaze is here, it’s cross-ministerial, and it’s sharper than ever before,” he said.
Tanu Banerjee, Partner at Khaitan & Co, added that the growing intolerance toward sexualised or “borderline exploitative” content will now reflect in evolving thresholds of what is considered vulgar. “Even if larger OTTs are not the immediate target, they are very much part of the tightening net.”
Tanu Banerjee, Partner at Khaitan & Co, pointed out how government’s recent blocking of 25 OTT platforms marks a significant escalation in content regulation and reflects its intent to move beyond advisory-led self-regulation.
"While larger OTTs may not be immediate targets, given their scale and generally higher compliance standards, the government’s action does reflect growing regulatory intolerance for obscene or borderline exploitative material, with evolving thresholds for what is considered ‘vulgar’ or ‘obscene’. The involvement of multiple ministries and industry associations suggests a more coordinated, cross-sectoral approach to enforcement going forward, particularly in areas impacting women and minors, where compliance expectations are clearly becoming more stringent.”
Meanwhile, media strategist Yasin Hamidani observed that although mainstream platforms have stronger compliance systems, they must now pay even closer attention to local sensitivities—especially around minors, sexuality, and violence. “The public mood is shifting. Government scrutiny is rising. It’s time to be proactive rather than reactive,” he said.
Legal experts are also concerned about the precedent this sets for censorship.
Siddharth Chandrashekhar, a lawyer at the Bombay High Court, called it a “systemic internal policy shift” that signals the end of content autonomy. “Today, the rationale is vulgarity. Tomorrow, it could be any dissenting or progressive voice. Once vague morality becomes the benchmark, no one is safe—not even Netflix or Prime.”
Echoing these concerns, Ramya Ramachandran, CEO of influencer marketing firm Whoppl, said that while safeguarding women and minors is critical, the lack of due process is worrying. “The affected platforms weren’t illegal. Yet they were banned with limited transparency. That’s not just a compliance issue—it’s a freedom of expression issue.”
Whether this move leads to a healthier digital content environment or a chilling effect on artistic freedom remains to be seen. What is certain is that the Indian OTT industry has entered a new phase—one where regulation, morality, and creativity are set to collide more often, and more visibly.
