Video streaming is mounting as stay-at-home and social distancing is turning people to TV series and movies to ease their isolation and pass their time. A recent report by Conviva, a streaming media research firm, disclosed that video streaming services around the world have increased by 20% in the month of March. The USA alone has experienced a 26% rise in the number of people logging in for video streaming services. After looking at the stats, you also want to create a streaming App like Netflix. Let’s first understand why OTT Platforms.
Today OTT platforms like Netflix and Amazon Prime are drawing TV viewers from all over the world. What is the secret behind its popularity? The answer is access to thousands of web services and movies and service packages that can satisfy any taste.
If you are also planning to build one such application, then the time is appropriate. Maybe you can beat the Netflix fever by creating something similar to that application and adding new features to it.
Here, in this article, we have covered everything that will help you understand what it takes to create a streaming App like Netflix:
Table of Contents
- Types of Video Streaming Applications
- Netflix Business Model
- Netflix Value Proposition
- How does Netflix Make Money?
- How to create Video Streaming App like Netflix?
- Find your Niche
- Decide on content availability
- Choose the monetization model
- Study the video streaming app requirements
- Focus on your Audience
- Important Features to Add When Creating a Streaming App
- Industries Have Great Demand For Streaming Solutions
- Technology Stack for Netflix-like Service
- Crucial Requirements for Streaming Services To Keep up With
- Total Cost of Netflix-like Service Development
- Final Hints
Types of video streaming applications
Before we get into what it takes to build a streaming platform, let’s take a look at some of the many types of video streaming services on the market.
Live video streaming
The number of gaming-focused streaming services is growing. There are lots of players in this niche in the market. Netflix is one such big name that is a pioneer of live video streaming services. You can also create an app like Netflix to take your business to new heights.
On-demand video streaming
Nowadays, almost every home has a mobile device with on-demand movie streaming apps. Netflix, Amazon Prime, Hulu, Apple TV and many more are in the race for streaming services.
In addition to SVoD, certain apps for streaming video on demand are now beginning to offer live TV. For an instance, Hulu offers over fifty live TV stations, including local ones.
Streaming apps from TV networks
Additionally, TV service providers and individual networks provide video streaming apps. The streaming options for these would be Showtime or HBO NOW. Users may now gain access to programs for each premium channel separately, as opposed to paying for pay channels as part of a cable bundle as was the case in the past.
Fascinating Live Streaming Data
- 70% of customers prefer watching videos over reading and listening, making them the most popular form of content.
- In the period from April 2019 to April 2020, the live streaming market expanded by 99%.
- 600 million people in China will be watching live streaming in 2020.
- According to 80% of US customers, live video is preferred over blog posts.
- At the end of the second quarter of 2021, 8.99 billion hours of live streaming material were watched across all streaming services.
- In comparison to on-demand videos, live streams are seen 10–20 times more frequently.
- More than 30% of Generation Z has expressed interest in live streaming, particularly on social media.
- Businesses that take advantage of video features increase income 49% more quickly than non-video users.
Netflix Business Model
Netflix’s business model is not simply about the way you monetize your business, but it also about how you embrace your audience. The business model of these video streaming services is based on an organization ecosystem, which can scale upwards in the future.
Netflix uses a subscription-based business model. Along with the global expansion, this business model will allow the company to scale up steadily and quickly.
Netflix Value Proposition
The Netflix value proposition includes four elements, such as:
The company delivers video across different operating systems, platforms, and devices. This approach helps Netflix maximize its fan base. Subscribers watch their favorite video content via tablets, browsers, and other devices.
All the programs broadcasted on Netflix are exclusive and third-party publisher’s shows. Apart from this, the service offers some in-house shows which are not available on any other platform.
Ads are shown only to free account users. We all know how irritating it is to watch ads when you are watching your favorite series. Premium subscription owners enjoy ad-free services, hence motivating users to buy a subscription.
Netflix has thousands of TV shows, which are available for streaming. The recommendation algorithm gathers content according to the user query and increases engagement with the platform.
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How Does Netflix Make Money?
The essential source of revenue for Netflix is subscriptions. Users can choose one of the following monthly plans:
- Basic plan starts at $7.99 per month. This plan doesn’t include high-definition viewing, and users can only watch videos one screen at a time.
- Standard plan, for $10.99 per month. This plan allows users to watch H.D. videos on two simultaneous wings.
- Premium plan, costs $13.99 per month. After paying the subscription fees, users can watch 4K videos on four screens.
As for the target audience, Netflix has the following three business segments:
- Domestic Streaming: The platform revenue mainly comes from monthly fees, which is paid by U.S. subscribers.
- International Streaming: Monthly membership fees which are generally generated from the subscribers who are outside the United States.
- Domestic DVD: Revenue generated by US subscribers who pay DVD-by-mail on monthly subscription fees.
Now, let’s have a look at how to create a video streaming App like Netflix and what is the estimated cost of developing such a video streaming app.
How to create a streaming App like Netflix?
Developing a streaming service app like Netflix might appear to be an easy task, but it is not. To develop a highly interactive, engaging, and response streaming service app, you have to go through the following steps:
Step 1: Find your Niche
The first thing to do is to decide what content your app will stream to users. Here are some ideas:
- Entertainment: Like HBO and Netflix, you can provide your customers with entertainment streaming services. The audience is whopping, you can surely think about becoming a new streaming provider.
- Fitness: Fitness is another crucial niche for VOD services. Fitness freaks under lockdown would be happy to pay for a subscription that provides them access to fitness-related videos anytime.
- Education: People sitting at home are increasingly searching for how-to videos rather than reading tutorials and instructions.
Step2: Decide on content availability
Since, the content is the basis of your service, decide what your content will be:
- Would you use videos from other distributors?
- Or, would you create your video content?
If you want to cooperate with video distributors, you need to get a license. Here are two ways to deal with that:
- Contacting the copyright holder
- Renting a movie from an authorized distributor along with a license.
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Step 3: Choose the monetization model
Here are three monetization models available for on-demand video services:
- Pay-Per-View: It is the most straightforward pricing scheme which means the user pays for every video he/she watches. This model is best if you develop a platform that broadcasts trade shows, sports events, boxing, conferences, and MMA.
- Advertising: You can charge companies for running video advertisements on your platform. However, this monetization strategy will only work if your platform will become famous among users.
- Subscription: As you remember, Netflix uses this monetization strategy. Besides this, the subscription model is effectively used by professional broadcasters. Subscribers are charged a monthly fee to receive access to a content library. You can use this monetization technique if you will regularly release new content on your platform.
Step 4: Study the video streaming app requirements
For your video to perform well, you need to balance the following characteristics:
- Internet Speed
Internet Speed impacts the platform’s ability to stream videos which are on-demand. The minimum internet speed to stream standard definition movies is more than 2 MB/second. But, to broadcast HD, 3D, or 4K, your Internet speed must be much higher.
- Cloud Hosting and Computing Architecture
For keeping video content we recommend using cloud hosting platforms because of the following benefits:
- The cloud platform allows quick access to video content.
- Cloud hosting platforms are cheaper than hard drives.
- Cloud hosting platforms are flexible and also increase the amount of space automatically.
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Step 5: Focus on your Audience
Here are a few ways to find the audience for Netflix like the app:
- Social Media: Popular social networks like Facebook, Instagram, Twitter, etc. Share videos on these channels to promote your services and find the right target audience.
- Use YouTube: This service is very powerful for brand promotion, hence it is good to use build a trustful attitude towards the product.
- Arrange Newsletters: Send your potential customers a letter with a detailed description of your service, but make sure you make the letter presentable and attractive.
Important Features to Add When Creating a Streaming App
You can add the features listed below to add a little customization over other user interfaces in addition to the necessary components that usually remain there for interaction.
Social Sign In
People nowadays are actively using social media platforms in their day-to-day activities. Offering them the ease of connecting their social media account to their video streaming account will provide them more flexibility.
It will allow them to easily sign up using their social network accounts with a single touch, saving them from having to fill out time-consuming forms.
Machine Learning Algorithm
The most important component of video streaming software, other than the fundamental ability to feed content, is arguably AI. You must provide the most pertinent material that is most likely to grab users’ attention if you want them to return to your app frequently.
Machine learning algorithms can help with that. To generate a virtual map of a user’s preferences, every user interaction may be automatically assessed and taken into consideration.
You must obviously keep in mind that your app’s audience will be global if you intend to make something similar to Netflix or Hulu. As a result, it is crucial to include a localization system for captions and the user interface. Multilingual support should be added initially. This function will improve the usability of your website and draw visitors from all around the world. Therefore, while developing a live streaming application like Netflix or HBO, make careful to support as many languages as you can.
For commuters and tourists without a reliable internet connection, downloading films to local storage is incredibly helpful. Yes, creating a mobile video streaming application entails more than just video streaming.
Industries Have Great Demand For Streaming Solutions
You might be asking at this point what your company might gain by integrating streaming video services. In actuality, there are several sectors where video streaming application development might be helpful. There aren’t many occupations that can’t in some manner profit from streaming video applications. Let’s go through some instances.
The market’s condition is self-evident. Even specialized suppliers such as Crunchyroll, Warner Archive, and MUBI may turn a profit because of the demand and profitability of this market. Additionally, this area is seeing an increase in live streaming app development.
COVID-19 has caused a tremendous rise in the use of remote education technologies, and this trend is expected to continue. For the purpose of adding visual aids to the classroom, this teaching methodology necessitates the creation of streaming platforms.
There are no indicators that telehealth will become less popular. While live video streaming applications is not required for all telemedicine solutions, the majority of them use streaming apps.
One of the most well-known businesses were using video streaming applications may be quite helpful is this eCommerce. Customers who want to see the product in action rather than merely photographs can view videos online. Despite the fact that many service providers have already integrated this functionality, others are in the process of doing so very soon.
Technology Stack for Creating Netflix-like Service
Database: MySQL, Oracle, Cassandra
Cloud Storage: Amazon S3:
Cloud Hosting: Amazon EC2
JS Libraries: React, WinJS;
BDaaS (Big Data as a Service): Amazon EMR;
Operating System: FreeBSD; Server: Nginx
Code collaboration and version control: GitHub;
Continuous Integration: Jenkins;
Server Management: Apache Mesos;
Log Management: Sumo Logic.
MVP of Netflix-like Streaming Service:
Netflix falls under those applications which require heavy backend for the processing of streaming data transfer. The total cost of development of applications like Netflix depends upon the number of features it will have. The more features app will have, the costlier it will be.
How Much Does it Cost to Create Video Streaming App Like Netflix:
There is no considerable difference between the app development for iOS or Android. But for the MVP, it is better to start with only one Operating System. Apart from this, you must also consider building an SVOD website as streaming services are used in web versions as well.
Hard-to-use applications alienate users and people are unlikely to use such applications. Therefore, for an app-like Netflix, a simple design is the best. It will also let users get the necessary information in the blink of an eye.
The first feature that is very crucial is registration. Registration via email and social networks makes it more convenient for potential users.
There is no need for a payment gateway if you are going to use an operating system from Apple or Google. Android and iOS have mobile payment systems that allow making purchases in Google Play and Apple Store with just one click of the button. The only thing that users need while making payments is to register their accounts. Apple and Google offer special frameworks for using their APIs.
Here users can add their favorite movies or web series. Also, it is possible to add more people so that you can add more content to a Netflix-like streaming service.
You have to provide your subscriber with options like “Selection by Genre” and “Selection by User Reviews.”
Chats and Comments
This may include options that would let users add a comment or communicate with other users.
Notifications will let you inform the user when new TV shows or series are released.
Selection of subtitles on/off, rewind, play/pause, audio track, volume control, etc.
It should be available obligatory since you as an admin will have access to manage users and videos as well, edit videos and block users if necessary.
Crucial Requirements for Streaming Services To Keep up With
How to make your Netflix-like service? You should that your streaming service should fulfill the basic requirements to ensure proper functionality, it has a direct impact on the user’s engagement.
Here are crucial requirements for a Netflix-like App:
Cloud hosting is the most reliable storage for any type of content. All your videos should be stored on a well-tried hosting to provide users with seamless content delivery.
Good Network Connectivity:
Apply Content Delivery Network (CDN) to create stable connectivity, give users shorter request time, and prevent servers overloading.
The combination of reliable CDN and video streaming will ensure high bandwidth and low probability of lagging.
Total Cost of Netflix like Service Development
It takes a lot of time and resources to create video streaming app like Netflix. But the cost of the final product is entirely dependent on how many features will be added to the application. Of course, the cost will vary, depending upon the functionalities that you want to include, but here is an approximate development cost of Netflix-like app:
What actions should be undertaken to achieve success through a video streaming app? Here are things to keep in mind to become a successful owner of other apps like Netflix.
- Proper estimation and planning during development.
- Pay attention to how your audience is immersing in your content. Also, there should be a large list of content.
- Various recommendation models should be built based on analytical information and A/B testing.
- Content security provision to avoid legal problems.
- Capabilities of income increase, audience growth, and advertising strategies.
- Analytics to improve data analysis and data collection, determine which features confuse users, and improve conversion rates.
- Quality of service, which refers to many app components whether it be streaming speed, transfer, delivery, user experience, or playback of the content.
To know more, you can get in touch with GraffersID, the best offshore software development center, to streamline your software development process and meet targets easily.
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