FDI limit of 26% does not apply to OTT platforms streaming news
1 min read . Updated: 10 Mar 2023, 05:42 PM IST
PremiumOTT platforms only provide a platform for carriage of third-party news and current affairs content of news channels.
New Delhi: The government’s 2019 decision to allow 26% foreign direct investment (FDI) in digital media does not apply to OTT platforms that host the digital feed of TV news channels, the ministry of information and broadcasting said on Friday.
“TV news channels granted permission under the Uplinking and Downlinking Guidelines, 2022 (and the earlier Guidelines of 2005 of and 2011) of the ministry of information and broadcasting and their entities operating the digital news content are already covered by FDI policy of the central government. Accordingly, when an OTT platform hosts the digital feed of a TV news channel (granted permission under the extant guidelines), the stipulation of FDI limit of 26% with government approval route would not apply to the OTT platform for the mere activity of hosting such feed," MIB said in a statement on Friday.
The ministry said it has received clarifications saying OTT platforms only provide a platform for carriage of third-party news and current affairs content of news channels on ‘as is basis’ without any editorial intervention, and that OTT platforms are not involved in any aggregation or curation of the news and current affairs content provided by such channels, but are only hosting the news feed provided by such entities much similar to a DTH (direct-to-home) or cable service provider.
“It is accordingly clarified that when an OTT platform is hosting digital feed of a TV news channel granted permission under the extant Uplinking and Downlinking Guidelines, only as a medium and makes it available to its subscribers or users, such an OTT platform is not covered the 26% FDI rule," it said in the statement.