In the third quarter of 2021, Netflix generated 7.5 billion U.S. dollars of revenue and 207.64 million paying Netflix customers in the first quarter of 2021 alone. Enormous Profits, right? Want to start your streaming service like Netflix or Amazon Prime or Disney Hotstar?
We are here with this blog- a complete guide on How to start a streaming service like Netflix, Hulu, Amazon Prime.
Introduction
One industry that boomed and earned huge revenues during the pandemic was Over-the-top streaming platforms. The stay-at-home restrictions and social distancing norms have propelled people to seek entertainment alone and online.
OTT platforms are the most in-demand means of entertainment across the globe. People can stream the content they love anytime with 24/7 internet connectivity. Over-the-top streaming services are giving the most direct competition to traditional formats, such as TV with a rapid adaptation internationally. The entire globe, especially the millennials, are engrossed in watching online content on streaming services like Amazon Prime, Disney Hotstar, or Netflix.
But, Why are OTT Streaming Platforms gaining popularity?
According to a study, 58% of Millennials stream content on their phones every day. Not only the younger people but people aged 55 or older are influenced by the trend. 60.3% of them use a smartphone to stream video/TV content on OTT platforms at least once a week.
3 reasons why Streaming services like Netflix rule the media and gain popularity among Viewers?
1. Variety of Content:
Netflix, Amazon Prime, Disney Hotstar, Voot, Zee5, and other streaming services offer audiences a wide array and variety of content to watch. They can explore content in diverse genres like crime, thriller, horror, and comedy.
2. Sensible & Relatable Content:
The content is more sensible, thought-provoking, and relatable for the current generation. The stories are based on real-life stories and characters out of small towns and cities. People are more interested in exploring the genuine characters raising real issues.
3. Anytime Anywhere Availability:
‘Not sleepy at 3 AM midnight, open Netflix on your smartphone to stream your favorite web series.’ The availability of content anytime and anywhere entices people. No need to browse channels to watch something interesting.
Top Streaming Services- How and When they started?
Netflix
Netflix was once a company renting DVDs online. People could order DVDs on the website and get them delivered to their doorsteps. They started the streaming service in 2007 and have grown to become the world’s most favored OTT platform. Since then, Netflix has grown in revenue and subscribers and earned more nominations at the 2020 Oscars than any other film studio.
The profound success of Netflix enticed many companies to start similar services including Amazon Prime Video, Disney Hotstar, Apple TV, HBO Max, Peacock.
Amazon Prime Video
Amazon launched its video-on-demand over-the-top streaming service as Prime Video back in 2006 for its Prime members. Prime members get to stream thousands of movies, TV channels. Currently, Prime Video has 200 million subscription users and is available in 22 countries.
Disney Hotstar
One of the best video streaming apps to enjoy Indian entertainment with over 100000 hours of drama and movies in 17 languages. Launched in 2015, the Indian subscription-based video streaming service has 43.7 million paid members.
Hulu
Owned by the Walt Disney Company, Hulu- the American Streaming platform launched in 2007 offers movies and television series from CBS, ABC, NBC, or FX. Currently available in the United States, the platform is owned by Walt Disney and has 43.8 million subscribers.
Statistics
Netflix
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- Netflix generated $24.9 billion in revenue in 2020 and $14.5 billion in revenue till June 2021.
- Currently, Netflix has 209.18 million subscribers spending an average of 3.2 hours per day watching content on the platform.
- 80% of the most-watched original series in the US in 2020 belonged to Netflix.
- In June 2021 alone, Netflix’s mobile app for iOS & Android was downloaded 16.4 million times.
Amazon Prime
- Amazon has over 200 million Prime members worldwide.
- In the United States, 126 million users subscribed to the Amazon Prime service in the first quarter of 2021.
- In 2021, sales during Prime Day on Amazon reached $11.79 billion.
- Amazon Prime is available in 22 countries and registered $25.21 billion in annual revenue.
Disney Hotstar
- As of October 2021, Disney+ Hotstar has 46.4 million subscribers.
- The video OTT provider earned a revenue of over 16 billion INR in 2020.
- Amazon Prime Video holds over 19% of the total streaming market share whereas Netflix holds a 17% share.
How to build a Streaming Service App like Netflix, Hulu, or Amazon Prime?
You can start your Netflix-like streaming services by following this step-by-step guide on building a Netflix-like app.
Step 1. Decide the Target Audience and content genre
Although OTT streaming services are popular among all, you must target a specific audience to stay competitive. Millennials form the majority of Netflix, Prime, and other OTT service users. So, first, define your target audience. You can target kids, or the younger generation, or people aged 55 or above.
Second, what kind of content you will be offering. Disney Hotstar is renowned for streaming Indian TV shows and movies. Netflix and Amazon Prime offer the most intellectual web series on different genres. So, you must know your niche. It can be drama, or comedy, or sports, or health & fitness, or originals.
Some of the popular niches can be:
Gaming
You can choose to provide video games and movies on a rental or subscription basis model. Netflix started as a DVD rental agency.
Sports
Another great idea can be starting a Netflix-styled sports streaming platform. The users can stream all sports premier leagues for a subscription. The idea is already gaining a buzz on social media.
Mythology
Many faiths have started their on-demand streaming and live streaming platforms where believers can stream dedicated prayers, studies, motivational sessions, etc.
Education
The online tutoring trend is at its peak as the pandemic outbreak compelled people to resort to online education. So, you can also consider investing in a Netflix-style education streaming platform.
Step 2. Brainstorm the Content
Once you are clear on your niche, it is easy to build the content for your streaming service. You can brainstorm ideas on what kind of videos you should create to engage the target audience in your niche. If you have analyzed the demands and browsing preferences of your audience well, you can create high-engaging traffic-generating videos.
Some important things to consider:
- You want to create original shows or collaborate with various content providers for their content.
- You will release content as a series or individual episodes.
- What will be the length of the videos- short or long?
Collaboration with content and video distributors requires a license for public performance. You can either rent the content straight from the authorized distributor with licenses or contact the copyright holder.
Step 3: Is acquiring the content license easy?
Acquiring a license of the old and classic movies and TV shows for your streaming service is expensive. The licensing cost to acquire the content impacts the total cost of creating a Netflix Streaming app.
To curate content for your video-on-demand service, you need to constantly collaborate with content providers. But, it’s not that easy as many streaming services already in the race might have purchased the license already. You can approach small production houses looking for online distributions to get a license.
Step 4: How to get returns on your Netflix investments?
Starting a streaming service like Netflix involves huge cost investments and you must have feasible methods to get returns on investments made. The three popular monetization methods for a video streaming OTT platform are:
Pay Per View or TVOD:
Transactional Video on demand (TVOD) method where users pay for each content video they watch. If you plan to offer important concerts, or events, or trade affairs, this model is apt to choose as a monetization method. For instance, iTunes.
Advertisements or AVOD:
Viewers can watch the content for free but with advertisements popping in between. Under the advertisement Video on Demand method, some ads play before the video content, some at the end and some in between. Viewers can choose to skip the ads.
The revenue earned from advertisements is shared by the VOD platform and the advertisement content providers. For instance, Youtube.
Subscriptions or SVOD:
Subscription Video-on-Demand is the most common monetization method used by major streaming platforms. For instance, Netflix, Amazon Prime, Hulu, etc. Under this method, users are required to take a monthly subscription to get unlimited access to the content library. You can offer different subscription plans. Viewers can renew or cancel the subscription whenever needed.
Hybrid Model:
Under the Hybrid revenue model, you can integrate multiple revenue models to satisfy the demands of different viewers. For instance, Youtube TV, Amazon Prime Video, Netflix all use the hybrid monetization method.
Self-Licensed Content Monetization:
You can also choose to license your original videos and shows and offer viewers to stream as self-generated content. For instance, Netflix and Amazon Prime Video provide their self-licensed original shows and web series.
Step 5: The technology Stack for a Video streaming app
You need an advanced and the right technology stack to start a compelling video streaming service. You can consult a reliable on-demand app development company to guide you on choosing the right technology stack for streaming services similar to Netflix.
Here is the technology stack used by Netflix:
- Amazon EC2 Servers for Cloud hosting.
- Laravel framework for building data-intensive real-time applications for distributed devices.
- MySQL or Cassandra for Databases, warehousing, and logins.
- Dynomite for Database cluster management.
- React or Vue Javascript UI Libraries to develop user interfaces for hybrid apps. For Android, either Java or Kotlin, and for iOS, Swift
- GitHub for code collaboration and version control.
- Apache Mesos for Server management.
- Sumo Logic for Log management
- Crittercism for Mobile error management and monitoring mobile performance.
- Boundary, LogicMonitor for Performance monitoring on-premise, cloud-based, and hybrid data centers.
Application and Data
Utilities
DevOps
Business Tools
Other Critical technology requirements:
Video streaming service providers have to provide high-quality videos that stream at a lightning-fast speed. To ensure this, you have to meet the following requirements:
Internet Speed
To stream on-demand videos, you need constant high-speed internet. A minimum internet speed of 2 Mb/s (megabits per second) is required to stream SD(standard definition) videos.
For your streaming platform, you need to broadcast HD, 3D, or 4K videos that require much higher internet speed.
Cloud architecture
The on-demand video platforms have complex architecture. You need cloud hosting to better support the complexity of your architecture. You can easily scale and migrate your business data on the cloud for future needs.
Cloud hosting platforms offer more flexibility and space allowing quicker access to video content. Moreover, Cloud hosting platforms offer cheaper data storage services.
Content Delivery Network
You will also need a CDN (Content Delivery Network) to allow quick access to content on the website. A CDN network reduces the load time for faster streaming to improve customer retention.
Security from unauthorized access
Content protection and Security are crucial to running a successful video streaming platform. You need protection from unauthorized access to your content.
- Network background to provide 24/7 content monitoring and availability in the case of server failure.
- Token Security to prevent unapproved access of video content by 3rd-party sources.
- Domain restriction to protect embedded links in the source code from other users.
- You can exclude specific locations using geographical restrictions.
- Watermarking maintains the rights to your content by offering an extra level of security.
How can users make Payments?
You can provide various options of payment to users for convenience. For example, Stripe, 2CheckOut, PayPal Payments Pro, and Braintree. Integration of different payment gateways allows users from various countries to make payments in various currencies.
Features of Netflix MVP App
It is important to offer your viewers the most essential features for a better experience. You can also come up with some unique features to serve as your USP and attract more new users.
The most essential features required in an MVP for an app like Netflix are:
User Registration and Profile Creation
You can enable registration on the platform using an email or contact number or through social networks. You can also allow the creation of multiple profiles through one account. Many users can access the content through one account.
Search the Content
The viewers can easily scan and search for their favorite shows, movies, or web series using the search bar. They can search the content based on different genres, actors, reviews, or the most popular categories.
You can also integrate the content recommendation feature that recommends content to users based on their browsing preferences, interests, and viewing history.
Push notifications
They notify users about new content releases, updates, and billing details.
Multi-language support
Viewers can choose the language of video playback and turn on subtitles.
Screenshot ban
It prevents viewers from clicking screenshots and video recordings of the screen.
Geo-restriction
The feature bans the use of the service from certain locations.
Download feature
Authorized Viewers can download content to the local storage of devices.
Reviews and ratings
You should allow users to review and rate the content based on their experience. The feedback and reviews by users help you improve your future content and offer a better customer experience.
UI/UX Design
The User Interface (UI) and User Experience (UX) are significant to the success of any video streaming service. Make sure to create a compelling and highly attractive UI/UX design for your Netflix-styled VOD platform.
Content Library
The content library manages all the video content and makes it instantly available for audiences to stream.
Video Player
To let viewers stream the videos and shows, you need to integrate a high-quality video player delivering the best viewing experience.
Video Creation and Management
The Video management feature enables users to create and upload videos. The viewers can create playlists to organize the video content. They can also edit and modify the content.
Step 8: Netflix app development Partner
The on-demand video streaming services have a complex architecture and require consideration of many factors like features, technology stack, operating system, and others. To make better-informed decisions and build a top-notch Netflix-like streaming service, a trusted on-demand app development company can help you.
You can choose from the three ways:
In-house Team
You can either hire an in-house team of software engineers if you plan to make prominent investments. It will require you to conduct interviews, hire a management team, and once hired, the development team will need proper infrastructure, monthly salaries, and incentives.
Freelancers
You can hire freelancers flexibly based on your project needs for a much lower cost. The top websites to find the top software development freelancers are UpWork, Freelancer, etc.
Hiring freelancers is cost-effective but they may lack the quality of development and responsibility of completing the project on time. Generally, freelancers are inexperienced college pass-outs.
Offshore Development Company
The most feasible and cost-effective way to build a streaming service platform like Netflix is to outsource your project to an offshore development company. They allow you to choose and hire the top on-demand app developers and engineers across the globe. You can hire them flexibly on an hourly, monthly, and full-time basis.
Acanyon as a leading custom mobile app development company can help you develop high-performing on-demand streaming apps like Netflix, Amazon Prime, Hulu.
Step 8. BETA Test & final deployment
Before final deployment, you can launch your Netflix MVP for a BETA test for a particular audience to gather valuable feedback and reviews. The genuine reviews and feedback from the specific audience will help you improve on your features, technology, user experience.
Based on the feedback, modify and improve your app and deploy it for the general audience.
How much does it cost to develop a streaming app like Netflix?
The most crucial step of developing a streaming service is the cost investment. How much will it cost? The development cost varies depending on the number and complexity of features, development team, and their location, third-party integrations, and many other factors.
The major factors involve:
- App UI and UX Design
- Technology stack
- Features Complexity
- Hourly rate of Developers
- Developers location
- Development timeline
The approximate cost of developing a complete Netflix-like streaming solution range between $30,000 to $200,000. The cost varies depending on the country and the hourly rate of developers.
Ready to build your Netflix-like streaming Solution?
Netflix, Amazon Prime, Disney Hotstar, Hulu, Voot, Apple TV, and other OTT streaming platforms are loved by millions worldwide. The streaming service providers are making huge revenues as they offer exactly what people love and demand.
If you plan to create a Netflix-like app for your business in 2022, a top entertainment app development company like Netflix can assist you in the best possible way. You can partner with Acanyon as your technology partner to build a Netflix-like app and website for you. You can either build an on-demand streaming app from scratch or develop a custom white-label Netflix-like app.
Connect with us today at +91 84013 26950 for more details or visit acanyon.com.