"If you look at our children's content, it's almost negligible, and the little that I see is very scary... It scares me to see the kind of children's content they are making," Khan, who also directed the film 'Taare Zameen Par', said at the annual Ficci Frames event here.
He said that 80 per cent children are watching content not made for them.
He further said the film industry should focus on inculcating values like honesty and caring in the content, which will help in shaping a child's mind.
"Today, unfortunately, we are in a time where dishonesty is looked upon. How do we bring in a quality that people can admire?"
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He said the industry, which is the biggest in the world, has the unique opportunity to "transform the way we think, the way we address issues."
The 50-year-old actor said the industry can have an impact on a generation of people if they made suitable content for children.