Streaming platforms operating in India are reportedly considering a legal challenge against the recent order issued by the Ministry of Health, which mandates them to display anti-tobacco warnings. Executives from major streaming platforms, including Viacom18, Netflix, Amazon, and Disney+Hotstar, held a closed-door meeting on Friday to discuss their concerns and potential courses of action, according to sources cited by Reuters.
During the meeting, the companies argued that the Ministry of Information & Broadcasting and the Ministry of Electronics and Information Technology should have jurisdiction over over-the-top (OTT) platforms, rather than the health ministry. The meeting took place shortly after the health ministry issued a notification that requires streaming platforms to show anti-tobacco warnings at the beginning and middle of their web shows, as well as display a static warning at the bottom of the screen when tobacco products are featured.
Netflix reportedly expressed concerns that the new mandates would negatively impact the customer experience and could lead production houses to block their content in India. The streaming platforms are worried about the potential costs and logistical challenges associated with editing millions of hours of existing content to comply with the new rules.
Sources familiar with the matter indicated that the companies believe it is impossible to edit their extensive content libraries within the given timeframe of three months. As a result, they plan to consult with lawyers and write protest letters to challenge the notification.
The controversy surrounding the new rules has reignited the debate regarding government intervention in the OTT streaming arena. In 2019, the Indian government expressed concerns about the lack of mandatory anti-tobacco and health warnings in web series aired on platforms like Amazon and Netflix. At that time, there were discussions about mandating approval processes for OTT content due to the prevalence of smoking and drinking scenes. While TV and films in India already adhere to anti-tobacco warning requirements, OTT platforms were exempt.
While the new rules pose challenges for OTT platforms, health activists have welcomed the move, citing the increasing death rate associated with tobacco consumption in the country. Despite the controversies and legal challenges faced by OTT platforms, India’s streaming industry is expected to flourish as smartphone and internet penetration rates continue to grow. A report estimates that the Indian OTT streaming market will reach a size of $12.5 billion by 2030.
