In a significant clarification for India's booming digital entertainment sector, the government has officially stated that content on Over-The-Top (OTT) streaming platforms will remain outside the purview of the Central Board of Film Certification (CBFC). Instead, these platforms will be governed by a separate regulatory framework designed for the digital space.
Clarity from the Lok Sabha
The announcement was made by Union Minister of State for Information and Broadcasting, Dr L Murugan, in response to a query raised in the Lok Sabha. On Wednesday, the minister delineated the jurisdictional boundaries, confirming that the statutory authority of the CBFC is strictly limited to the examination and certification of cinematographic films meant for theatrical release in cinemas.
Dr Murugan emphasized that OTT platforms, which include major services like Netflix, Disney+ Hotstar, and Amazon Prime Video, are regulated under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. These rules mandate that platforms adhere to a published Code of Ethics.
The Three-Tier Grievance Redressal Mechanism
A key component of the IT Rules is a structured system for handling public complaints. The minister detailed the operational framework:
Level-I involves self-regulation by the OTT publishers themselves. When a complaint is received, it is forwarded to the concerned platform for resolution.
Level-II escalates oversight to an industry-led self-regulatory body, providing an additional layer of review.
Level-III entails government oversight, ensuring a final avenue for grievance redressal. This multi-tiered approach aims to balance creative freedom with accountability.
The Code of Ethics under these rules requires platforms to implement age-based content classification (such as U, U/A 7+, U/A 13+, U/A 16+, and A) and strictly refrain from publishing any content deemed illegal.
Enforcement and Industry Growth
Dr Murugan informed the House that the IT Act and its accompanying rules are instrumental in monitoring unlawful and harmful content online. The rules place specific obligations on digital intermediaries to ensure greater accountability for the material hosted on their platforms.
In a demonstration of enforcement, the minister revealed that the government has disabled public access to 43 OTT platforms in India for displaying obscene content.
Despite regulatory actions, the sector continues to exhibit robust growth. Citing the FICCI-EY Media & Entertainment Industry Report 2025, Dr Murugan shared that video subscription revenues from OTT platforms grew by 11% in 2024, generating a substantial Rs 9,200 crore in revenue.
The report further estimates that between 9.5 crore (95 million) and 11.8 crore (118 million) people in India currently pay for streaming content on various OTT services, underscoring the massive scale and economic importance of the industry.
This formal distinction between the regulatory regimes for theatrical films and digital streaming content provides long-awaited clarity for producers, platforms, and consumers alike, cementing a separate governance path for India's dynamic OTT ecosystem.
