Netflix, Viacom18, and Disney+Hotstar Contemplate Legal Action Over New Anti-Tobacco Rules
- ByStartupStory | June 3, 2023
Several streaming platforms in India are considering taking legal action against the Ministry of Health’s recent directive that requires them to display anti-tobacco warnings. According to sources, executives from prominent platforms such as Viacom18, Netflix, Amazon, and Disney+Hotstar held a confidential meeting on Friday to oppose the new regulations. This move comes as the platforms seek to address the issue and push back against the imposed rules.
During a private discussion, the companies explored the option of initiating a legal dispute against the recent regulations. They emphasized that the authority governing OTT platforms was the Ministry of Information & Broadcasting (MIB) and the Ministry of Electronics and Information Technology (MeitY), not the Ministry of Health.
The closed-door meeting occurred shortly after the Ministry of Health issued a notification requiring streaming platforms to incorporate anti-tobacco warnings at the start and midway through their web shows. Additionally, the platforms were instructed to display a fixed anti-tobacco health warning at the bottom of the screen whenever tobacco products were showcased or utilized in the program.
During the meeting, Netflix, a prominent OTT platform, reportedly argued that the new regulations would negatively impact the customer experience and potentially lead production companies to restrict their content in India. The OTT platforms expressed concerns that complying with the mandates would require extensive editing of millions of hours of existing content, resulting in significant financial burdens.
According to a source, the companies firmly believed that it was not feasible to edit their entire content library within a three-month timeframe. Another individual familiar with the situation revealed that the platforms had chosen to seek legal advice and draft protest letters in response to the recent notification.
The controversy has sparked a broader discussion on government intervention in the OTT streaming industry. Back in 2019, reports surfaced that the central government had expressed concerns about the absence of obligatory anti-tobacco and health warnings in web series available on platforms like Amazon and Netflix in India. At that time, the government had considered the possibility of requiring OTT platforms to seek approval before releasing content to users, primarily due to the significant portrayal of smoking and drinking scenes in their web shows. While regulations already exist in the country to mandate anti-tobacco warnings in television and films, OTT platforms were exempt from these rules.
While the new regulations have created challenges for OTT platforms, health advocates have expressed support for the move, pointing to the increasing death toll associated with tobacco use in India. Leading OTT platforms in India include JioCinema, Disney+Hotstar, Netflix, and Amazon. In recent times, these platforms have invested significant amounts of money to attract Indian users, introducing regional content and more affordable subscription plans. Despite the growing popularity of OTT platforms, the industry has frequently faced controversies and legal disputes, often resulting in police complaints.
With the increasing penetration of smartphones and internet connectivity, the OTT industry in India is projected to witness substantial growth. A report suggests that the domestic OTT streaming market is expected to reach a significant market size of $12.5 billion by the year 2030.
Follow Startup Story
Related Posts
