New OTT guidelines: You can Netflix and chill but OTTs have their work cut out

A. NetFlix and Chill

Be it the controversy around Amazon Prime Video's web series Tandav starring Saif Ali Khan or Netflix's Sacred Games, content on over-the-top (OTT) platforms has been a cause of concern for many for a long time.

Addressing this concern, the government on February 25 introduced new norms to regulate content on streaming platforms.

While many are saying that the new norms will lead to a level playing field, there are still many clarifications that are needed.

So, content can be classified under different ratings like U rating (content suitable for all) or UA7+ rating (content that can be viewed by a person below seven years). But how do you make sure that adult content is not accessible to children?

There are ways.

"OTTs can block access to unsuitable content by enabling a parental lock on the app/platform. This can be like a toggle to display/hide unsafe content using a password. The other way this can be done is by having a dedicated children's section that's accessible without a password and password protecting the rest of the content," filmmaker Akshay Bardapurkar, who will soon be launching a Marathi language OTT platform, told Moneycontrol.

Adding to this, Shashank Singh, Cofounder & CEO - FLYX, said, "OTTs generally depend on providing parental controls with PIN based verification. OTTs may also try to enable two step verification by introducing OTP based verification on mobile number or email. Even if a child comes to know about PIN number, OTP will restrict the child from accessing the prohibited content through someone else’ profile."

Utkarsh Sinha, MD, Bexley Advisors pointed out that platforms like Netflix let users set different profile for children however, the filtration there is not so strong as there are stuff on a kid's profile that a children should not have access to.

Concurring with Sinha, Singh said that "many times movies and series which are restricted by PIN preferences are not hidden when searching for them on OTT platforms. PIN is required only for viewing the said content. As a result, kids also end up being exposed to trailers which they ideally should not be."

This is why he thinks that OTT platforms should upgrade by making sure that content with A ratings is visible on the search page of the platform only after entering PIN / OTP.

Neeraj Dubey, Partner - Corporate Law, Singh & Associates, pointed out that similar regulations exist internationally. "Singapore has the Infocomm Media Development Authority that mandates service providers to obtain a licence. There is a content code for OTT, classification of content, parental lock and age verification, apart from display of rating and content elements."

Singapore has the Infocomm Media Development Authority that mandates service providers to obtain a licence.

However, he said that how it will be made sure that a user is declaring the right age remains unclear.

"When it comes to children's safety, only a barrier/deterrent on the user's side would be foolproof," believes Bardapurkar.

So, OTTs have their work cut out for them when it comes to making sure that suitable content is made accessible to the right age group. But there's a lot more the streaming players will have to work on after the introduction of new norms to regulate OTT content.

And one such task will be to rate all content streaming on their platforms under U (Universal), U/A(above 7), U/A (13+), U/A (16+) and A for Adults.

Singh that while rating of new shows will be an on-going exercise, rating each and every piece of content available on OTT platforms right from inception is going to be a mammoth exercise.

Dubey added that OTTs already have a record of shows, which are 18+, and shows which are suitable for audiences below 12.

However, he said that "they (OTTs) would need to further rate content for people aged 13 and above, and for people aged 16 and above separately. This would mean that the OTTs need to introduce new rating categories, in addition to the existing one and rate their library accordingly."

But will the new norms impact OTT viewership?

The opinions are divided. Some say it won't others say that all will depend on the focus of streaming players for their upcoming content.

"OTTs are different because it is a more personal viewing experience. So if TV type of content will come on OTT then there will be conflict. But then look at a series as beautiful as Scam 1992 (starring Pratik Gandhi). It fits all the guidelines and it was a huge success. And such content have universal appeal. So, OTTs will have to look at creating more universal content. So, a particular type of content will reduce because they (OTTs) will now have to cater to a larger audience to drive subscription."

According to a KPMG report, OTT subscription revenue will be up by 4.8 times to Rs 4,600 crore in FY22. Despite the strong growth, it is a lot lower than what TV gets from subscriptions, which is around Rs 51,600 crore that it registered in FY20. So, OTTs have a long way to go when it comes to adding more subscribers. Hence, they have to focus on a content mix which caters to both families and individuals.

According to a KPMG report, OTT subscription revenue will be up by 4.8 times to Rs 4,600 crore in FY22.

Nigam Niggehalli, Dean, BML Munjal University pointed out that "the (new) rules spared a lot of time on grievances but they have not spared enough time on the people who will be solving those grievances like how to appoint, their tenure, among others."

He is right in pointing this out as it is not clear who the grievance redressal officer be-- will it be a person appointed by the OTT player independently or someone who will be appointed in consultation with the ministry?

"The rules envisage that the officer will be appointed by the OTT. But if it is in the hands of the media, will that not lead to conflict of interest? And this issue has ramifications across the board even with social media," said Niggehalli.

He added that Facebook had faced similar concerns. While it had redressal mechanism, the concern was how to trust that. "Facebook has tried to solve it by having an international oversight board which has got some credibility because it is independent of Facebook as well as the government. I have a feeling that mechanisms in the rules I think will need some rethink because right now the mechanism is neither independent of government or the OTT player."

While the new regulations solve a lot of concerns, many more need to be resolved.

Niggehalli who thinks that there could be regulatory overreach said that the government has to take a stand on how they perceive the new media. "Do they see it as an extension of traditional media or do they see it as a space for cutting edge content where creativity is encouraged. If they see it as the latter, as an incubator of creativity, they should have slightly more liberal attitude towards new media."

And Adhikari agrees. "If OTTs are more about personal viewing, it makes sense if they have little leeway as compared to TV and cinema," he said.