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ALT Digital Media Entertainment Ltd, the OTT arm of Balaji Telefilms, posted ?45 crore in revenue for FY24, down from ?54 crore the year before, before being banned by the government for streaming obscene content, according to financials sourced from Tofler. Despite lower revenues, the streaming service narrowed its losses to ?18 crore from ?76 crore in FY23.
The numbers, however, tell only part of the story. Beyond the topline decline, ALTT’s filings reveal persistent governance gaps. Since June 15, 2023, the platform has operated without a Managing Director, CEO, or Whole-Time Director, non-compliance under Section 203 of the Companies Act. The absence of a woman director throughout FY24 also constituted a violation under Section 149, as flagged in the auditor’s report.
For ALTT, the absence of key managerial personnel and the failure to appoint a woman director were not just procedural misses—they were breaches that, combined with content-related controversies, made the platform a regulatory target.
Despite public clarifications from Ekta Kapoor and Shobha Kapoor claiming no association with ALTT since June 2021, Balaji Telefilms, where Ekta remains Joint MD, continues to be the parent company. This corporate linkage has kept the controversy within Balaji’s shadow, underscoring the reputational risks when subsidiaries falter on compliance.
One Ramesh Sippy is officially listed as Non-Executive Director and Chairman of the Board, according to financials. Industry sources, however, emphasise that he is not the veteran filmmaker but a long-time associate of Ekta Kapoor’s father–actor Jeetendra.
Repeated attempts to reach Ekta Kapoor, founder of Balaji Telefilms, for her comments remained unanswered.
From Early Wins to Strategic Missteps
ALTT, launched in April 2017 as the digital arm of Balaji Telefilms, was once hailed as an early mover in India’s OTT landscape to serve Indian audiences, particularly those hungry for bold, urban Hindi dramas.
“Riding on Balaji’s content library and Ekta Kapoor’s brand equity, the early momentum for the streaming services came from ambitious series like The Test Case and Bose: Dead/Alive, which attracted millions of users and drove revenues upward. The platform later experimented with AVOD formats (such as Lock Upp) and aimed to capture ‘Bharat’ beyond metros by keeping subscriptions affordable and expanding localized offerings,” said a producer, requesting anonymity.
But cracks began to appear after the founding team stepped away around 2021. The new leadership leaned heavily on revenue generation while content quality slipped. ALTBalaji was rebranded ALTT, and shifted focus to low-cost, adult-themed programming, brought in executives from rivals known for such content, and distanced itself from its earlier, high-ambition originals, industry observers said.
“I’ve been observing ALTT’s journey since its inception, and it’s clear to me that its downfall stemmed from poor hiring practices, a weak understanding of audience behavior and revenue models, and an overemphasis on pleasing investors and balancing P&L accounts—rather than advancing the platform’s original vision,” claimed Pep Figueiredo, COO – PTPL India; former SonyLIV executive and the author of Evolving Global OTT Landscape.
Once the new team prioritized quick returns over compelling content, the brand lost both its creative edge and viewer trust. “Subscriber growth soon stalled, dropping from 4.7 million in FY21 to 3.88 million in FY22, while investments in creative production and storytelling declined sharply. The platform eventually collapsed as funds ran dry,” said an insider.
What remains a mystery is why the Kapoors chose to exit the board — and why the platform ventured into bold content, former executives wondered.
Figueiredo adds, “While the founders walked away with healthy profits, the ban dealt a severe blow to a platform that had already lost its way once leadership changed hands. ALTT’s story shows what happens when profit is prioritized over narrative: the creative spark fades, subscribers drift away, and trust erodes. In the OTT business, quick fixes can never replace consistent, quality programming that truly engages viewers.”
There was a time ALTT could’ve taken the Applause route, a former executive notes, referring to Sameer Nair-led Applause Entertainment, now recognized for high-quality, mainstream digital originals. “But ALTT doubled down on adult-themed storytelling, and the audience ceiling was always going to be low.”
Industry observers say this strategy was the undoing of ALTT. “Initially, the risqué positioning gave it quick traction,” says a former ALTT executive. “But it also limited its ability to attract premium advertisers, scale beyond a certain user base, or build partnerships with mainstream platforms.”
The audience noticed the fall. Production processes deteriorated, many employees from the content team were laid off. Public backlash over provocative content followed, culminating in the platform’s ban by the Indian government in July 2025—a final blow to its operational viability.
The Compliance Overhang
The government ban has now amplified scrutiny of OTT governance standards.
Legal experts point out that under the Companies Act, persistent non-compliance can trigger penalties and disqualification of directors. For parent companies, such lapses can also invite shareholder questions on oversight mechanisms.
As content boundaries expand and regulation tightens, platforms must ensure that risk-taking in creative strategy is matched by rigour in compliance and leadership oversight.
“OTT is no longer a freewheeling space,” says a senior media analyst. “The platforms that will survive are the ones that can balance creative freedom with governance discipline. ALTT shows what happens when one side of that equation is ignored.”
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