Government Moves to Regulate OTT Platforms: License Fee Set at NPR 10 Million, Uncertainty Remains Over YouTube and Spotify

The government has brought Over-the-Top (OTT) platforms operating in Nepal under a legal and regulatory framework. By amending the National Broadcasting Regulations, the government has explicitly included both domestic and foreign platforms that provide video and audio content over the internet within the scope of regulation. With this new provision, internet-based services and apps operating in Nepal—such as NetTV, ViaTV, Digo, NTTV, and Clear TV—will now be required to comply with government standards and fall within the tax framework.

Path Opened for Foreign Platforms to Operate in Nepal The amended regulations have opened the way for globally renowned foreign OTT platforms such as Netflix, Amazon Prime Video, and Disney+ Hotstar to officially register and operate in Nepal. According to the regulations, any foreign company wishing to provide such services in Nepal must either register directly in the country or obtain authorization through a local content aggregator (a Nepali service provider). Previously, there was legal ambiguity regarding how OTT services should be classified compared to cable television and IPTV services. The amendment addresses this regulatory "gray area" and provides a clearer legal framework for OTT platforms. Challenge of Regulating YouTube While regulating subscription-based OTT platforms appears relatively straightforward, the government still faces challenges in determining how to regulate free, advertising-supported platforms such as YouTube and Spotify. According to Chabindra Parajuli, Director General of the Department of Information and Broadcasting, the government plans to gradually bring all platforms under the regulatory framework. However, he has not provided a clear answer on what actions would be taken if such platforms choose not to register.

Expensive Licensing and Fees The new regulations have introduced a high-cost structure for OTT operations and foreign content broadcasting. The key fee structures are as follows: OTT Operation License: NPR 10 million (1 Crore). Foreign OTT Platform Downlinking: NPR 1 million (10 Lakhs) per platform. Signal Distribution for Foreign OTT: NPR 2.5 million (25 Lakhs) per platform. Ad-free Paid Channel Downlinking (via App/IPTV): NPR 300,000 per channel. Foreign Franchise or Live Broadcast Approval: NPR 500,000. Online Radio Operation: NPR 50,000. Impact on Mega Events like FIFA World Cup The amendment also directly affects the live streaming of major events like the FIFA World Cup on OTT platforms. Under the new rules, the total fee for broadcasting such events is estimated to reach approximately NPR 12 million. This includes the NPR 10 million OTT license fee, NPR 500,000 for live broadcast approval, and various other downlinking and signal distribution costs.

Although this new provision is expected to help organize and regulate Nepal’s digital broadcasting sector, its implementation is likely to be quite complex, particularly for small service providers and foreign free-to-use platforms.