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Date:
March 5, 2021

New Rules for Regulation of Digital Platforms in India

India's government has established new rules for digital news organizations, social media intermediaries and OTT platforms under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, released by the Electronics & Information Technology Ministry and the Information & Broadcasting Ministry on Feb. 25 2021.

Framed under the Information Technology Act or the IT Act, 2000, the guidelines for digital media and OTT will become active on the date of publication in the official Gazette of India . The rules consist of three main parts, where Part I defines the terms and Parts II and III delineates compliance requirements. The regulation of social media intermediaries like WhatsApp, Telegram, Facebook, Instagram etc., is detailed in Part II and will be overseen by the Ministry of Electronics and Information Technology (MeitY). Regulations for digital news media and OTT platforms like Netflix, Hotstar, Amazon Prime etc., are contained in Part III, which will be managed by the Ministry of Information & Broadcasting.

Under the IT Act, 2000, OTT platforms were not previously regulated. The new rules however, framed under this Act, seek to exercise the power to regulate them, which can constitutionally only be done via a parliamentary enactment.

Code of Ethics
A Code of Ethics for OTT platforms is outlined in the Appendix of the Rules, under which is present a three tier Grievance Redressal mechanism. Level I -- Self-regulation by the applicable entity, Level II -- Self-regulation by the self-regulating bodies of the applicable entities and Level III -- Oversight mechanism by the Central Government. There does not appear to be any legislative backing or a parliamentary law behind the Oversight Mechanism, which also allows the Ministry emergency powers to block content.

Grievance Redressal and Self-Regulating Mechanism
Level I states that OTT platforms must draw up a grievance redressal mechanism which will be headed by a Grievance Officer who must be an Indian citizen. A 15-day time period has been allocated for the Grievance Officer to address the complaint and revert, beyond which it will be escalated to Level II. In case the complainant is not satisfied with the publisher's decision, they also have the choice to appeal to the self-regulating body in Level II within 15 days of receiving such a decision.

Level II contains the independent self-regulating body, comprising of publishers or their associations and is expected to be headed by a retired judge of either the Supreme Court, High Court or any eminent personality from the fields of media, broadcasting, entertainment or other relevant fields and have a maximum of six other members from these fields. This body must register itself with the Ministry of Information & Broadcasting and has the power to provide warnings, censure, admonish or reprimand the publisher, require an apology from the publisher, reclassify ratings, make changes to the content descriptors, synopsis, access control measures of the content or even censor the content. It will then pass on its decision to the publisher in the form of a guidance or advisory and inform the complainant of its decision within 15 days.

In Level III, if the complainant is not satisfied by the self-regulating body's decision, they can appeal to the Oversight Mechanism of the Central Government within 15 days of receiving the decision. Non-compliance by the publisher to the self-regulating body's directions can also result in the complaint being forwarded to Level III. This level comprises an Inter-Departmental Committee consisting of representatives from the Ministry of Information & Broadcasting, Ministry of Women & Child Development, Ministry of Law & Justice, Ministry of Home Affairs, Ministry of Electronics & Information Technology, Ministry of External Affairs, Ministry of Defense and such other Ministries and Organizations, including domain experts. The Chairman of the Committee will be a Joint Secretary from the Ministry of Information & Broadcasting. The primary objective of this Committee will be to address complaints regarding decisions taken at Levels I and II, and it is empowered to delete or modify content for preventing incitement to the commission of a cognizable offence relating to public order.

Rules for providers of OTT content
OTT content publishers are forbidden from showing any content that is prohibited under Indian law. There is also mention of exercising caution when showing content that can be detrimental to the sovereignty and integrity of India or has the potential to cause friction with its allies. Additionally, OTT providers are asked to remain sensitive when portraying the culture, beliefs, practices or views of any racial or religious group in the country. Also required is self-classification of the OTT content into five new age-based categories -- U (Universal), U/A 7+, U/A 13+, U/A 16+, and A (Adult). Access control mechanisms like parental locks for content classified U/A 13+ or higher and reliable age verification mechanisms for content classified as "A" must be implemented by the OTT providers.

A major concern for OTT providers is the Oversight Committee's power to block access to content that it deems unfit for the public which is seen as the government's overreach to suppress creativity. However, the secretary of the Ministry of Information & Broadcasting, Amit Khare, moved to quash these concerns -- "There will be no authoritarian process. The regulation system is accountable to the courts. Any misuse of power can be checked."

Khare said that these rules represent a paradigm shift in policy. "As of now, any movie that released to theaters needs to be approved by the Classification Board, but for these OTT platforms, no such requirement is there. The government has left the decision up to them. They can decide what labels to use. The idea is that the viewer should be aware of what they will be watching."

He stressed that government would in no way alter the content available. "Films only have three categories, while we have provided five for OTT platforms. The government is willing to consider extending a similar classification for movies released in theatres as well." Khare also highlighted how OTT platforms have democratized entertainment. "These rules were debated for over a year-and-a-half. We have also taken a conscious decision to not set up a web portal where grievances can be filed as we wanted to make sure people didn't think the government was needlessly interfering," he said. "The people can directly complain to the platform and if the complaint is not resolved by their standards, it can be escalated to the ministry."

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NAB 2025 – Recognizing a Changed Industry

Another National Association of Broadcasters (NAB) conference is in the books, and if anything has changed in the media and entertainment industry, the conference and attendees were there to discuss it. From content evolution to changes in audience preferences to AI being everywhere, to trade uncertainty, it was a topic of conversation at NAB 2025. Official categories included: Artificial Intelligence, Cloud Virtualization, Creator Economy, Sports, and Streaming. If a general conclusion could be drawn, it’s that the legacy media business no longer cuts in today’s market, and to survive these new realities, businesses must rethink how they fit in.

Everything Is Changing

One of the biggest takeaways from NAB is the impact the creator economy is having on the industry. Dozens of panels focused on how individuals and small-team productions have upended traditional business models and economics, attracting large audiences from traditional producers while also siphoning away ad revenues and production contracts. Recognizing this trend, hundreds of exhibitors demonstrated how their products or services support all types of creators while also providing benefits to traditional media companies. The NAB also introduced two new initiatives to support this growing sector: the Creator Council and the Creator Lab.

In a keynote session, media cartographer Evan Shapiro highlighted the extent of the shift, pointing out that by 2027, the creator economy is expected to grow to half a trillion dollars, nearly doubling its value from last year ($250 million). Shapiro, recognizing the difference between the creator economy and influencers, cites their effectiveness in attracting and engaging large audiences without having to deal with “gatekeeper-led content.” His final point was that this new reality presents the M&E industry with two options: embrace it or get left behind.

Market and Regulatory Uncertainty

The current uncertainty in global trade markets and the impact of tariffs on product purchases has cast a significant chill on many exhibitors at NAB. This was especially true for those companies whose products were manufactured or included parts from impacted countries or markets (services are not yet subject to tariffs). Many companies encouraged customers to expedite purchases to take advantage of existing inventories and avoid significant cost increases as tariffs are implemented. Attendees and speakers also expressed concerns about how regulatory changes from the FCC and regulators in other countries might impact  children's television programming, the news distortion policy, technical rules (e.g., ATSC 3.0), and TV carriage rules (e.g., non-duplication, and syndicated exclusivity).

Monetization Evolves as Markets Evolve

The continued growth of OTT/FAST and the rapidly expanding creator economy means competition for eyeballs and ads will only become more intense. Evidence of this was on clear display during NAB 2025:

  • Traditional Broadcast Disruption: The rise of streaming services and changing viewer habits are challenging traditional broadcast models, necessitating a reimagining of revenue strategies.
  • Fragmented Audiences: The audience is increasingly fragmented across linear streaming, on-demand platforms, and traditional broadcast, making it more difficult for advertisers to reach consumers effectively.
  • Hybrid Models: Streaming services are increasingly adopting hybrid monetization models, such as AVOD or FAST, to supplement their subscription revenues.

A key component of all of these strategies is high-fidelity metadata. Without it, content marketing, search, and discovery, as well as contextual advertising, are much more difficult to achieve. With it, compliance, brand safety, and audience acceptance increase significantly.

AI Everywhere

Artificial Intelligence (AI) and its increasing impact on content creation, marketing, and virtual production were everywhere at NAB 2025. Nearly 300 exhibiting companies from around the world demonstrated products that included or were enhanced by AI across every phase of content production, marketing, advertising, and distribution. Among them, Spherex highlighted its flagship product, SpherexAI, and demonstrated how it is transforming global video compliance and contextual advertising through scene-level intelligence and cultural insight. It also facilitates ad placement where they will resonate and yield better audience results.

The takeaways from NAB 2025 paint a clear picture: the media and entertainment landscape is in constant flux, demanding adaptability and innovation for survival. The undeniable surge of the creator economy, coupled with market and regulatory uncertainties and the evolving monetization models driven by streaming, presents both challenges and opportunities for traditional and new players. Overlaying all of this is the pervasive influence of artificial intelligence, poised to reshape every facet of the industry.

Ultimately, NAB 2025 underscored a fundamental truth: standing still is no longer an option. The future of media and entertainment belongs to those who embrace change, leverage new technologies, and understand the shifting dynamics of both content creation and audience engagement.

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Experience SpherexAI at NAB 2025

Spherex is headed to Las Vegas for NAB 2025, and we’re bringing a bold new expansion of our flagship product, SpherexAI. Join us at Booth W1456 in the West Hall of the Las Vegas Convention Center from April 6-9 to see how we’re transforming contextual advertising with cultural and emotional intelligence.

As the media and advertising industries look to AI for smarter targeting and better brand alignment, SpherexAI offers a groundbreaking solution. By analyzing the cultural and emotional context of streaming video at the scene level, SpherexAI helps advertisers engage audiences more meaningfully while reducing the risk of misaligned or unsafe ad placements.

The Power of Scene-Level Intelligence

At the heart of our advertising innovation is SpherexAI’s multimodal platform, which processes thousands of signals from every frame—visuals, audio, dialogue, and on-screen text—to create rich metadata that understands the tone, mood, and narrative context of video content.

This deep, scene-level intelligence powers a range of capabilities that can dramatically improve campaign effectiveness:

  • Smarter Ad Targeting – Ads are delivered when viewers are most emotionally receptive, based on the precise tone and content of each scene.
  • Seamless Integration – Ads align with the story arc instead of disrupting it, increasing both engagement and recall.
  • Cultural Sensitivity at Scale – Our patented Cultural Knowledge Graph ensures ad messaging aligns with local customs, values, and regulations in over 200 countries and territories.
  • Enhanced Brand Safety – SpherexAI actively prevents ad placements in scenes that could be offensive, inappropriate, or reputationally risky.

Whether you're building a global campaign or fine-tuning messaging for a specific region, SpherexAI ensures your ads resonate with cultural nuance and emotional precision. Best of all, this isn’t vaporware; SpherexAI can be added to your workflows today!

See It In Action

At NAB 2025, we’ll be demoing how SpherexAI empowers advertisers to connect with audiences in powerful new ways—by aligning their campaigns with the content people are already emotionally invested in.

Book a Demo

Ready to experience the future of contextual advertising? Book a meeting with the Spherex team or drop by Booth W1456 during NAB 2025. We’re excited to show you how scene-level cultural intelligence can elevate your strategy and unlock deeper audience engagement.

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Teresa Phillips Joins OTT.X Buzz Panel to Celebrate Women’s History Month

On March 19, 2025, Spherex CEO Teresa Phillips joined a distinguished panel of female executives for the OTT.X BUZZ session—Women’s History Month Edition. This engaging discussion covered the latest trends in OTT and digital video while shedding light on women's unique experiences navigating the media and technology industries.

Moderated by Charlene Polite Corley, VP of Diverse Insights & Partnerships at Nielsen, the panel featured:

  • Teresa Phillips, Chief Executive Officer, Spherex
  • Jenn Chen, Chief Revenue Officer, JWP Connatix
  • Maria Hellström, Chief Executive Officer, Codemill
  • Laura Martin, Managing Director, Senior Internet & Media Analyst, Needham & Company
  • Paige Sherman, Director, Digital Video Programming, Shout! Studios

Teresa shared valuable insights on leadership, career development, and the evolving role of women in media. Reflecting on her journey in a male-dominated industry and the U.S. Army, she emphasized the impact of mentorship and sponsorship in shaping successful careers. Offering practical advice for early and mid-career professionals, Phillips highlighted the importance of adaptability, recognizing career pivot points, and leading through times of transition.

Key Takeaways from the Discussion Throughout the session, the panelists tackled some of the most pertinent topics facing women and the industry today, including:

  • Work-Life Balance and Corporate Support: The panel explored how companies can better support caregivers, highlighting policies that enable a more inclusive and sustainable work environment.
  • The Rapid Evolution of AI in Media: With AI and automation playing an increasingly central role in content distribution, Phillips emphasized Spherex’s role in leveraging AI-powered tools to help studios navigate cultural and regulatory landscapes worldwide.
  • Leadership in a Shifting Industry: The panelists reflected on how they’ve adapted to significant industry changes, from the rise of FAST channels to the increasing role of data-driven decision-making in content strategy.
  • Challenges and Opportunities for Women in Media: The discussion tackled informal workplace dynamics that impact women’s success, from navigating corporate culture to advocating for fair representation at leadership levels.
  • Balancing Authenticity and Career Growth: Panelists shared insights on maintaining personal authenticity while adapting to workplace expectations in male-dominated spaces.

Looking Ahead: Women Driving Industry Innovation -The panelists reinforced that women’s leadership in M&E is not just necessary—it’s a competitive advantage. As AI, automation, and viewer behaviors evolve, diverse leadership will play a pivotal role in shaping the future of streaming.

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