Video streaming services across India are urgently establishing legal teams and compliance frameworks as the country's new digital data privacy regulations officially come into force. The implementation of the Digital Personal Data Protection Act, 2023 marks a significant shift in how platforms handle user information, with particular implications for services targeting children and those with interactive gaming features.
New Compliance Landscape for Streaming Platforms
More than two years after parliament passed the Digital Personal Data Protection Act in 2023, the Ministry of Electronics & Information Technology (MeitY) has formally notified the rules and established a four-member data protection board. This regulatory body will oversee compliance, address grievances, and impose penalties for violations of the new law.
The board possesses authority to levy substantial fines, including penalties up to ₹250 crore for failing to ensure adequate security safeguards and up to ₹200 crore for not reporting data breaches to the board or affected individuals. Industry experts indicate that OTT platforms likely to be classified as significant data fiduciaries will face extensive compliance requirements.
Stricter Rules for Children's Content and Gaming
Platforms directed toward children or those offering interactive gaming capabilities will encounter additional regulatory burdens. These include specific requirements around obtaining consent, implementing age-verification systems, establishing data retention periods, and handling children's personal information with enhanced safeguards.
According to Rajat Agrawal, Chief Operating Officer and Director of Ultra Media & Entertainment Group, Indian OTT platforms are now preparing to comply with the DPDP Rules of 2025. While some services had preliminary measures in place, the new regulation serves as a wake-up call for robust data protection systems.
Compliance costs are expected to rise significantly, with technology budgets potentially increasing by 10-15%, according to industry estimates. Legal and process-governance expenditures will also climb, with some startups allocating 15-20% of their legal budgets specifically for DPDP Act readiness.
Impact on Revenue Models and Business Operations
The new data privacy regime may substantially disrupt existing revenue models, particularly those reliant on targeted advertising. Anupam Shukla, Partner at Pioneer Legal, explained that monetization will be affected due to restrictions on personal data usage, especially the prohibition against targeted advertising and tracking of children's data.
This could force platforms to shift from behavior-based advertising toward subscription models or contextual advertising approaches. The changes come at a challenging time for the industry, with production costs rising and viewer engagement becoming increasingly difficult to maintain.
Cyril Abrol, Partner at Remfry & Sagar, emphasized the urgency: "Now that the rules have been formally notified, the clock is ticking. The regulator has set clear obligations and timelines, penalties are substantial, and enforcement capability is beginning to take shape."
Many platforms are accelerating internal audits, renegotiating vendor contracts, and reevaluating data-sharing arrangements with advertising technology partners. The focus is shifting toward demonstrable compliance rather than mere paper compliance, particularly concerning minors' data, cross-border data transfers, and algorithmic profiling.
Differential Impact Across the OTT Ecosystem
The compliance burden will not affect all platforms equally. Larger OTT players, especially those with international operations, may already have mature privacy processes that reduce their additional burden. However, smaller domestic platforms face steeper challenges.
Ketan Mukhija, Senior Partner at Burgeon Law, noted that the fixed cost of compliance could weigh heavily on leaner business models, particularly those dependent on targeted advertising. Vikas Bansal, Partner at BDO India, highlighted that key operational factors like child consent mechanisms, notice requirements during login processes, and guest login protocols will require significant adjustments.
Hardeep Sachdeva, Senior Partner at AZB & Partners, summarized the situation: "Domestic OTTs will likely face a steeper adjustment curve. What previously functioned as a voluntary reputational safeguard has become a legally enforceable liability."
Despite the challenges, industry representatives express confidence in adapting to the new framework. A senior streaming platform official, speaking anonymously, stated: "We are in the process of structuring legal teams and will have more clarity over the next week or two. There will be a cost burden, but other markets have shown these processes are doable."
The official added that the 18-month transition timeline should help streaming services make the shift to the new data privacy regime smoothly. As the industry navigates these changes, the broader push toward higher accountability and technical maturity represents a significant evolution in India's digital ecosystem.
