OTT platform Ullu, known largely for graphic and sexually gratifying content, has come under glare for crossing the line in a recently streamed reality TV show
Inc42 takes a sneak peek into the controversial adult entertainment app to understand the business model it runs on and the way it woos subscribers
Despite repeated crackdown on similar platforms for obscenity, Ullu has stayed online with its user base multiplying and revenue surging over the years
When Vibhu Agarwal launched Ullu in 2019, he took inspiration from the Hindi word for owl—a nocturnal creature long associated with mystery and mischief. It was a fitting emblem for a streaming platform that built its empire in the shadows of mainstream entertainment, riding the thin line between sensual storytelling and soft porn. The symbolism? Bold. The strategy? Even bolder.
In a country where sex remains taboo but still sells, Ullu found its niche in erotic web series and short films, mostly in Hindi and other regional languages like Bhojpuri, Tamil, and Telugu. The formula clicked. But with growing visibility comes scrutiny—and the questions of legality, morality, and market size are now circling the owl.
The Allure and the Outrage
Ullu’s content strategy—primarily adult-centric dramas flaunting sexually suggestive posters—has attracted millions. But it has also triggered moral alarms. Earlier this year, the platform had to take down its reality show House Arrest after a viral video clip showing contestants enacting sex positions caused political uproar and drew the ire of the National Commission for Women (NCW).
The controversy underscores a paradox: India is one of the largest consumers of adult content, yet producing or distributing it within the country often invites legal and societal backlash. Since the government’s 2018 ban on over 800 porn sites, including global giants like Pornhub and Brazzers, viewers have turned to VPNs and alternative platforms. This digital vacuum opened the door for local players—Ullu among them.
Ullu by the Numbers
Despite controversies, Ullu has soared. With 10 million+ app downloads, 2 million paid subscribers, and an FY24 revenue of ₹99.6 Cr with a ₹12.6 Cr profit, Ullu even surpassed Netflix India’s subscriber count, according to a now-deleted LinkedIn post.
Its IPO ambitions, however, hit a pause after backlash over its content. Ullu filed for a BSE SME listing to raise ₹135-150 Cr, but the move sparked debate about whether such content should be publicly traded. The company hasn’t responded to media queries regarding the delay.
The Content Machine Behind the Curtain
Ullu operates via two main production models:
- Partnering with external creators, who pitch concepts and scripts.
- Creating content in-house, where the Ullu team generates ideas based on user insight and controls the entire production pipeline.
The platform has even built a studio near Meerut, with budgets per show ranging from ₹25 Lakh to ₹50 Lakh. From scripting to post-production, Ullu manages it all—assuming full responsibility for any content that crosses legal or moral lines.
“Let’s be honest. It’s mostly soft porn dressed up as drama,” says one insider. “All they need are recurring sex scenes and a suspense thread.”
Smart Marketing Meets Small-Town Appeal
Ullu keeps its marketing lean and clever. It avoids splashy ad campaigns and instead relies heavily on social media clips—7 to 8-minute teasers of 30-minute episodes—shared on Facebook and YouTube. These previews act as bait, drawing users into the paid app experience.
The strategy works particularly well in Tier III and rural India, where the curiosity factor is high, and access to mainstream OTTs is limited. Ullu offers affordable plans (₹99 for 3 days to ₹693 for a year) and gives away the first episode of any show for free, hooking viewers psychologically before prompting payment.
This word-of-mouth growth is backed by massive followings across Ullu’s official social pages and its actors’ personal accounts. Collectively, these social assets fuel engagement without significant marketing spend.
The Grey Legal Reality
What truly sets Ullu apart is how it operates within India’s ambiguous legal space around adult content. Currently, OTTs are self-regulated under the IT Rules, 2021, which require disclaimers, age warnings, and classification of content. But enforcement is weak.
“There’s no real age check. Anyone can click ‘Yes’ and access content,” says a digital policy expert. No KYC, no ID verification. And yet, 18 other platforms like Voovi and Besharams were banned in 2023 for “obscene content,” while Ullu continues to operate.
The core of the issue lies in the lack of a consistent definition for ‘obscenity’. India’s laws—ranging from the Indian Penal Code to the Indecent Representation of Women Act—penalize the publication or transmission of sexually explicit content, but the line is subjective.
“What’s obscene for one may be art for another,” says an industry veteran. “Without clarity, enforcement becomes arbitrary.”
Even the Broadcasting Services (Regulation) Bill, 2023, introduced to control OTTs, was rolled back amid backlash from creators citing censorship fears. Ullu itself acknowledged in its IPO papers that such legislation could severely impact revenue.
The Edge of Controversy
Ullu’s rise is a case study in capitalizing on gaps—in market demand, regulation, and mainstream OTT aversion to risqué content. It has built a business model where low content and marketing costs yield high margins, riding on forbidden allure and smart psychology.
But with rising public backlash, regulatory tightening, and political pressure, how long can the owl stay in flight?
Until the law defines where the line truly lies, Ullu will continue to walk it—with millions watching.
