26% FDI rule will not apply on OTTs just hosting digital feed of TV news channels
MIB issues statement saying it has received several representations from Chambers of Commerce and OTT platforms seeking clarification on it
The Ministry of Information and Broadcasting has clarified that the stipulation of FDI limit of 26% with government approval route would not apply to the OTT platforms that are just hosting the digital feed of a TV news channel.
“TV news channels granted permission under the Uplinking and Downlinking Guidelines, 2022 (and the earlier Guidelines of 200W and 20 11) Of the Ministry of Information & 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,” read a statement issued by the Deputy Director (Digital Media), MIB.
“It is accordingly clarified that when an OTT platform is hosting digital feed of a TV news channel granted permission under the extant Uplinking & Downlinking Guidelines, only as a medium and makes it available to its subscribers/users, such a OTT platform is not covered under the 26% FDI rule,” mentioned the statement.
The ministry said it has issued a clarification since it received several representations from Chambers of Commerce and OTT platforms (covered under the IT Digital Media Ethics Code Rules, 2021) seeking clarification on the matter.
