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.