Age-gating: Business and Technical Challenges for OTT Platforms The IT rules mandate the OTT platforms to self-classify into five age-based categories

Netflix, Amazon Prime Video, JioHotstar and other streaming services operating in India have been nudged again by the Indian government to deploy stricter age-gating to prevent children from accessing age-inappropriate content.

Responding to a question in Rajya Sabha last week, Dr L Murugan, Minister of State for Information & Broadcasting and Parliamentary Affairs, noted that the government had notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, under the Information Technology Act, 2000, (dated 25th February, 2021).

"Part-III of these Rules provide for a Code of Ethics for publishers of online curated content (OTT platforms) which, inter alia, require the publishers not to transmit any content which is prohibited by law for the time being in force. The Code requires them to undertake age-based classification of content into 5 categories, based on general guidelines provided in the Schedule to the Rules. The Code also provides that the OTT Platform will put in place adequate safeguards for restricting age-inappropriate content for children," the minister said in the written response.

For the uninitiated, the IT rules mandate the OTT platforms to self-classify into five age-based categories namely U (universal) U/A 7+, U/A 13+, U/A 16+, and A (Adult). For content that is rated U/A 13+ and above, OTT platforms are required to have age verification and lock mechanisms to ensure inappropriate content is not accessible to children. The rules are part of a broader framework for digital media entities.

Entrepreneur India has reached out to Netflix, Amazon (Prime Video) and JioHotstar to learn more about the compliance.

Business and Technical Challenges for OTT Platforms

Age-gating has remained a big challenge for internet companies around the world. Moreover, governments, too, have been trying to keep children away from such platforms, which are susceptible to unchecked inappropriate content.

Just recently, Australia became the first country in the world to ban social networking platforms for children under 16 years old. According to reports, countries like Denmark and Malaysia are planning to follow suit as well. Earlier this year, select European countries were part of a pilot program for an age verification app. Even Norway is looking to prohibit social media platforms from offering their services to children under the age of 15.

Even as major focus has remained on social networking platforms, India's regulatory regime is also covering OTT platforms. It's worth noting that OTT platforms like Netflix do allow setting up children-only profiles, but there's no age-gating or multiple steps required to watch adult content. However, several third-party applications are available that can provide a parental lock for such apps.

For streaming platforms, deploying such an intricate age-gating mechanism will remain a huge challenge. From the government's point of view, it has already reiterated that it supports freedom of expression but is also cognizant of the risks posed by fake, false, and misleading information on digital platforms.

Experts are of the view that despite the noble intentions of the authorities, OTT platforms are yet to close in on an effective mechanism so that it remains compliant but at the same does not impose unnecessary viewer fraction or barriers.

Even for classifications into five categories, OTT platforms may have to rely on users' voluntary disclosure about their age. But it may not be very effective given multiple viewers in the same household. Another mechanism could be verification through the primary subscriber, often through the payment system or via a completely new mechanism for identity authentication. Then, they can expect that the subscriber will provide the right age details. This mechanism, however, may not be completely foolproof.

"But this system is flawed - parents may not fully understand or enable existing controls — and the minors may be far more tech-savvy than the adults in the household," tech industry veteran and senior advisor at FTI Consulting Prasanto Kumar Roy told Entrepreneur India.

Roy also added that a 'full verification' system that relies on every viewer in a household validating birthdates would be next to impossible to implement and enforce, with tech-savvy minors bypassing it in multiple ways. And parental controls like PINs are flawed, troublesome, and non-secure – often shared in a family and quickly known to minors.

"Classification itself is flawed. Automated classifiers often struggle with nuance (e.g., humor, mild violence) or simply with the use of words like 's**' in innocent contexts, leading to over-blocking (more likely in the Indian scenario) or under-blocking," he said.

Serial entrepreneur and media industry veteran Darshan M tells Entrepreneur India that age-based access control is no longer optional but has become a necessity and at the same time, protecting minors is not just a legal obligation but also an ethical one.

He also said that while most OTT platforms offer multiple user profiles, it remains surprisingly easy for a minor to access adult content.

"This isn't a technology problem, it's a design and intent problem," Darshan said.

According to Darshan, OTTs must explore existing and easy-to-deploy solutions such as OTPs. It could be as simple as an SMS with OTP sent to the guardian or parent's number whenever an adult content is accessed. It may cause some friction in the user experience but is easy to implement and quite cost-effective.

"We don't need overly complex or invasive technology to solve this. We just need the will to implement smart, responsible safeguards," he said.

Having said that, the government's fresh nudge on the implementation of the IT rules marks a step forward towards embedding ethical accountability into India's rapidly expanding OTT landscape.

According to Statista, revenue in the OTT video market in India is set to reach USD 4.47bn in 2025. Another EY report published earlier this year says that subscribing households will grow from 47 million to over 65 million by 2027 as per capita income grows along with the deeper penetration of smart TVs and low-cost high-speed data.

The EY report, however, also points out the action against the apps that were found disseminating obscene content. Platforms that were blocked included the likes of UIlu, ALTBalaji, and Desiflix.

"That said, the interpretation of terms like "obscenity," especially in the context of "Indian values," remains subjective and open to debate. As the regulatory framework evolves, its implementation will need to strike a balance between fostering responsible content consumption and preserving creative freedom, ensuring it avoids unintended constraints on artistic expression. Platforms will need to ensure agreements with licensors and production houses require compliance with content regulations and put in place a process for identification of noncompliant content. This should also extend to terms of use or license agreements with users that allow users to upload content on platforms," said the report.

Clearly, there is a precedent for stricter actions against the platforms in the case of non-compliance. OTT platforms must act faster, if not already, to ensure a responsible design that aligns with the local guidelines and rules, as well as ensure the user experience does not get affected much.