Growth of Advertising on Netflix, Amazon Prime, and YouTube Fuels OTT Platform Popularity

The global digital advertising market is increasingly shifting toward Over-The-Top (OTT) platforms, and this trend is beginning to emerge in Nepal as well. However, the lack of clear policies regarding OTT advertising, taxation, and content regulation in Nepal is creating long-term risks. In line with international practices, Nepal needs to establish explicit policies on OTT advertising registration, tax management, and user privacy protection.

With the rapid expansion of digital media, the structure of the global advertising market is undergoing swift transformation. Whereas advertising budgets were once primarily focused on television, radio, and print media, they are now gradually moving toward OTT platforms. This trend is becoming increasingly evident in Nepal. Despite this growth, stakeholders highlight the absence of comprehensive policy frameworks to guide this sector.

Globally, YouTube has already captured a significant share of the digital advertising market. Meanwhile, services like Netflix, Amazon Prime Video, HBO Max, and Spotify are adopting hybrid models that combine subscription fees with advertising. This development positions OTT platforms not just as subscription-based services but also as major sources of advertising revenue.

International experience shows that OTT and broadcast services are regulated under separate frameworks. Stringent rules are applied concerning data privacy and targeted advertising. Taxation on revenue generated by foreign OTT platforms is clearly defined. The hybrid model that integrates both subscription and advertising revenues is legally recognized. Considering the rapid growth of advertising revenue on OTT platforms, it is essential for Nepal to promptly formulate clear policies in this area.