From auto payments to multi-device chaos: do OTT users always know what they're paying for?

ZEE5 did not respond to Mint's queries.

“Auto-renewal was designed to reduce friction for the subscriber, the idea being that uninterrupted access leads to better engagement and retention. In principle, it is a reasonable model. In practice, however, the responsibility of clear communication falls entirely on the platform, and that is where many fall short,” said Kaushik Das, founder and CEO of Odia platform AAO NXT. When reminders are buried in terms and conditions or renewal notifications are easy to miss, subscribers do end up paying for services they are no longer actively using, Das added.

Tushar Agarwal, founder and managing partner at C.L.A.P. JURIS, Advocates & Solicitors, said that while consumers know headline features like price, content, and streaming quality, digital contracts are rarely read in full, as users often consent within seconds. As a result, many don't realise that benefits can change, content can be pulled due to licensing issues, or refunds can be restricted in certain cases.

Platforms accused of burying renewal terms

“Many users, especially those on multiple services, can lose money when renewals occur for unused plans. Fairness depends on disclosure and cancellation ease; regulators stress clear consent, a simple opt-out, and timely reminders. When platforms bury renewal terms or make cancellation convoluted, the balance tips toward consumer harm and justifies complaint or regulatory intervention,” said Alay Razvi, managing partner, Accord Juris.

That said, many believe that auto-payment is convenient for a lifestyle product. “OTT is consumed daily; it isn’t a one-off purchase, so paying manually every month is pure friction. It interrupts the experience, risks losing access mid-series, and adds a recurring chore for no benefit,” said Sandeep Bansal, director, Chaupal, a platform specializing in Punjabi, Haryanvi and Bhojpuri content. He added that auto-debit for OTT mirrors how electricity and telecom billing work: continuous services are billed continuously, with users watching by default unless they actively opt out.

Auto-renewal of subscriptions is a globally accepted practice adopted across digital services, including in India. In most cases, recurring billing is clearly disclosed and requires explicit user consent before the final payment is processed, according to Chandrashekhar Mantha, partner and media and entertainment sector leader at Deloitte India. Therefore, it may not be entirely accurate to suggest that subscribers are unaware of recurring charges.

Amazon Prime Video drew criticism last year after shifting its ad-free paid tier to include ads, with an ad-free option now offered only at a higher price. Defending the move, Gaurav Gandhi, vice-president, Amazon Prime Video, Asia-Pacific & Middle East-North Africa, said, "We're giving people the choice…Customers can choose how they want to consume the content, and we shall adjust and learn as we go along."

Complaints over multi-device access are rising, especially around live sports, premium content and event-based plans. Ankit Sahni, partner at Ajay Sahni & Associates, said this stems from a mismatch between how platforms define access, distinguishing registered devices, simultaneous streams, mobile-only plans and casting restrictions, and how consumers simply expect to watch on more than one device without unreasonable limits.

Multi-device terms vary widely, confusing users

“The complexity arises because 'multi-device' may not always mean simultaneous viewing on all devices. For example, a plan may allow four registered devices but only two active streams. Therefore, platforms must explain device limits clearly before purchase, especially when the plan is marketed around major events or sports content,” said Rahul Hingmire, managing partner, Vis Legis Law Practice.

To be sure, industry experts say most users are aware of basic terms like subscription fees, content availability, and device compatibility. They are also aware of auto-renewal, but might not understand the terms or forget to cancel. Also, users are somewhat aware of content guidelines, but might not know about specific rules or changes. According to Harini Niveda, counsel, JSW Steel, awareness is very limited and largely cursory. It is mostly a click-through attitude rather than trying to understand the critical provisions related to automatic renewals, data usage, dispute resolution, and jurisdiction clauses.

Rajat Agrawal, chief operating officer, Ultra Media & Entertainment Group, said users often skip reading the terms and conditions, leading to surprises later. Policies like data usage, simultaneous streaming, and account sharing can be unclear. Also, users might not stay up to date on changes to the terms and conditions. The gap is because OTT guidelines can be complex and hard to understand. Additionally, users often prioritise convenience over reading the fine print.

Rajesh Sethi, partner and leader-media, entertainment and sports, PwC India, said awareness of OTT terms in India remains low, with most users focused on price and content rather than cancellation rules, device limits or renewal cycles, and called on platforms to spell out key terms upfront in plain language. “There’s a clear need for better transparency, simpler plan descriptions, reminders before renewals, and clearer communication changes,” he said.