Balaji Telefilms shuts down ALTT after MIB ban, repurposes ₹5.39 crore worth of assets

Balaji Telefilms Limited has officially discontinued its over-the-top (OTT) platform ALTT, following a directive from the Ministry of Information and Broadcasting (MIB) that instructed intermediaries to disable access to several content platforms allegedly violating Indian laws. The closure marks the end of an era for Balaji’s first digital entertainment venture, launched as ALTBalaji in 2017 and later rebranded as ALTT.

The MIB, earlier this year, identified and blocked 25 OTT platforms found to be in violation of Indian content regulations. These included ALTT, ULLU, Gulab App, Big Shots App, Desiflix, Boomex, Navarasa Lite, Hulchul App, Kangan App, Jalva App, ShowHit, Wow Entertainment, ShowX, Look Entertainment, MoodX, Hitprime, Feneo, Sol Talkies, Adda TV, HotX VIP, NeonX VIP, Fugi, Mojflix, Bull App, and Triflicks.

According to the government, these platforms were found to have breached the Indecent Representation of Women (Prohibition) Act, 1986, Section 67 of the Information Technology Act, and Section 292 of the Indian Penal Code (IPC), which prohibit the transmission or publication of obscene material. The crackdown is part of the ministry’s ongoing effort to bring digital content providers under a structured compliance regime similar to traditional broadcasters.

“The management has assessed that the action taken by MIB and intermediaries does not impact the recoverability of the related assets,” Balaji Telefilms said in its regulatory filing. “The discontinuation of ALTT and the launch of Kutingg are part of a strategic shift in the company’s digital content approach.”

The digital segment, which previously housed ALTT, reported a loss of ₹3.31 crore for the quarter and ₹5.63 crore for the half year ended September 2025, compared with a loss of ₹7.46 crore during the same period last year. Despite the platform’s shutdown, the company maintained that the recoverability of digital-related assets valued at ₹5.39 crore remains unaffected, as they are being repurposed for the new Kutingg app.

As per Balaji Telefilms’ FY24 annual report, the company had invested ₹795 crore in its OTT venture ALTT and extended loans totaling ₹103 crore, including accrued interest. A valuation conducted by a Big Four accounting firm pegged ALTT’s enterprise value at ₹1,209 crore — reflecting a 32% premium over its book value — driven by strategic initiatives such as cost optimisation and reduced cash burn.

As part of its ongoing digital transformation, the company had introduced a new OTT service titled “Kutingg”, which officially went live on September 9, 2025. The launch represents Balaji Telefilms’ renewed focus on content creation aligned with evolving regulatory and audience expectations. The company described the move as a strategic evolution rather than a financial setback.

In her clarification, Ekta Kapoor, Joint Managing Director of Balaji Telefilms, had said that neither she nor her mother Shobha Kapoor had any association with ALTT since June 2021. “Media reports have been circulating about ALTT being disabled by the authorities; however, contrary to such reports, both of us are not associated in any capacity with ALTT, and we stepped down from our roles way back in June 2021,” she said.

Kapoor had emphasized that Balaji Telefilms, a company listed on both the BSE and NSE, operates as a professionally managed entertainment group. “Following the recent amalgamation of ALT Digital Media Entertainment Ltd., which was earlier a wholly owned subsidiary, and the parent company, duly approved by the Hon’ble NCLT, Balaji Telefilms officially took over the operation of ALTT from June 20, 2025,” she explained.

She further clarified that any insinuation or suggestion linking her or her mother to the ALTT platform was false and completely denied. “We urge the media to report facts accurately and refrain from spreading misinformation,” Kapoor said, adding that Balaji Telefilms continues to uphold the highest standards of corporate governance and legal compliance.

In its statement, the company reiterated that it remains fully compliant with all applicable laws and continues to operate transparently. The company’s new digital offering, Kutingg, is expected to carry forward its legacy in storytelling with a sharper focus on compliance and curated mainstream content.

On the financial front, Balaji Telefilms reported a consolidated loss of ₹4.97 crore for the quarter ended September 30, 2025, compared to a profit of ₹4.62 crore in the same period last year. For the half year ended September 2025, the company posted a net loss of ₹10.92 crore, against a profit of ₹2.39 crore a year earlier.

The company’s revenue from operations declined sharply to ₹48.8 crore during the quarter from ₹144.4 crore in the corresponding period of the previous year. For the half year, revenues stood at ₹121.6 crore, down from ₹293.6 crore in the first half of FY25. Total income for the quarter came in at ₹51.45 crore.

Segment-wise, the commissioned programs division contributed ₹37.86 crore to total revenue, while the films division brought in ₹4.71 crore and the digital arm accounted for ₹6.33 crore. Total expenses for the quarter stood at ₹58 crore, resulting in a pre-tax loss of ₹6.55 crore.

Despite the near-term financial pressure and regulatory challenges, Balaji Telefilms remains focused on repositioning its digital strategy through Kutingg. The company aims to strengthen its core entertainment portfolio while aligning with the broader industry trend of regulatory compliance and responsible content creation.