How To Build an App Like Netflix?Vikash Soni
The on-demand video streaming app market has experienced exponential growth in recent years, revolutionizing the way we consume entertainment. Its worth was estimated at a staggering USD 376.06 billion in 2020. And is projected to reach USD 932.39 billion by 2028, at an impressive CAGR of 12.1%.
With such a massive market opportunity, it is no wonder that entrepreneurs and tech enthusiasts are eager to join the streaming revolution. And build the next big thing in on-demand video entertainment.
Are you ready to join the streaming revolution and create your own application like Netflix?
Before embarking on custom app development services, it is essential to equip yourself with the right knowledge and resources. By gaining a comprehensive understanding of market trends and industry standards, you can build a successful app.
In this detailed blog, we will delve into the intricacies of creating a top-notch video streaming app similar to Netflix. From discussing the key advantages of incorporating the latest technologies, and exploring various monetization models to outlining the development process, we will cover it all.
So, get ready to learn about creating a world-class video streaming app that can compete with the likes of Netflix.
But before we move forward let’s have a quick overview of the story behind Netflix’s triumph.
Let’s get started!
Story Behind Netflix’s Success
Netflix is a streaming service that started out as a DVD-by-mail company in 1997. It was founded by Reed Hastings and Marc Randolph. Over time it evolved from a DVD-by-mail service to one of the world’s largest streaming services.
In 2007 Netflix launched its on-demand streaming services which allowed subscribers to stream movies and TV shows online. At first, the service was only available on personal computers but it quickly expanded to other devices such as game consoles, smartphones, and tablets.
One of the key factors in Netflix’s success was its ability to produce and distribute its own original content. They started with the political drama “House of Cards” in 2013. And become one of the first companies to invest in producing its own shows and movies.
Since then, this strategy has come to be known as the “Netflix model” and it has been highly successful. Today Netflix has produced numerous critically acclaimed original series and films that have helped it become a leader in the streaming market.
Overall, Netflix’s success can be attributed to a combination of factors, including its focus on producing high-quality original content, its commitment to innovation, and its ability to attract a diverse and engaged user base.
Advantages of Online Streaming Video Applications
The biggest advantage of online video streaming applications is the convenience they offer. Users can access their favorite movies and TV shows anytime, anywhere, and on any device with an internet connection. They don’t have to worry about scheduling the time around television programming or missing a show they wanted to watch.
2. Wide Selection
Video streaming applications offer a vast library of movies and TV shows to choose from, including popular and classic titles. So users can browse from thousands of options and discover new content based on their viewing preferences.
3. Original Content
Many streaming applications produce their own original content, which is exclusive to their platform. This includes popular TV shows, documentaries, and movies.
These are generally more affordable than traditional cable and satellite TV services. Most services offer monthly or annual subscription options, making it easy for users to budget their entertainment expenses.
5. Interactive Features
Some video streaming applications offer interactive features such as
- Ability to download content for offline viewing.
- Multiple languages options
- Ability to create and share playlists with friends and family, and many more.
6. High-Quality Video
These apps use advanced technologies to deliver high-quality video content. This includes high-definition and 4K streaming options which provide a visually stunning viewing experience.
Top Competitors of Netflix Video Streaming Application
Netflix is one of the leading players in the video streaming industry but it faces tough competition from several other top companies as well. This is because OTT platform development has revolutionized over the decades.
Below are some of the top competitors of Netflix globally:
- Amazon Prime Video
- Disney+ Hotstar
- HBO Max
Revenue Model of Netflix Mobile Application
The revenue model of the Netflix mobile application is primarily based on a subscription-based system. In this model, users pay a monthly fee to access the platform’s extensive library of TV shows, movies, and, original content. Netflix offers three different subscription plans including Basic, Standard, and Premium which vary in the level of access to content and features.
- The Basic plan allows users to access the platform’s library on a single device in standard definition.
- The standard plan offers access to the library on two devices in standard definition
- The premium plan provides access to the library on four devices in 4K ultra-high definition and supports streaming on multiple screens.
Apart from the subscription-based model, Netflix also generates revenue from licensing its original content to other platforms and through product placements.
Additionally, the company has started testing a new feature that allows users to purchase or rent certain movies and shows directly from the platform. This allows for generating income from each sale or rental.
Step By Step Process To Create a Video Streaming App Like Netflix
1. Find Your Niche & Develop a Unique Strategy
The process of app development always starts with a unique idea and strategy. Here in this step, your prime objective is to find the type of content you want to stream on your video streaming app.
To help you out we have explained the different types of content categories below.
- Entertainment: It is a popular type of content that includes various genres such as comedy, thriller, action, and more. This type of content is highly profitable as it appeals to a broad audience and people are always looking for something new to watch.
- Fitness: Fitness is another type of category that has the potential for a live streaming app. As people are always looking to stay fit and having access to on-demand fitness videos can be highly attractive. As an entrepreneur, you can consider including various features such as Zumba, yoga, and diet conditioning to experience higher conversions.
- Education: The shift towards instructional videos has made education a prime niche for live streaming apps. Whether it’s a new hobby or skill, or simply expanding one’s knowledge, people of all ages are eager to learn and grow. An informational video streaming app offers the perfect platform for this pursuit of knowledge. That ultimately provides users with easy access to valuable information and resources. Investing in this type of platform can bring out substantial returns in the future as demand for educational content will continue to rise.
2. Decide On Content Availability
When it comes to developing a Video On-Demand application like Netflix, one of the crucial steps is deciding on content availability. As it is the backbone of your VoD app, it is essential to have a clear understanding of the type of content you want to offer to your users. This could include entertainment, educational, or fitness content.
You can choose to either source videos from other distribution channels, build a live streaming app or set up your own content media house. Furthermore, you could also consider reaching out to other media houses and forming partnerships for content.
Regardless of the approach you choose, it is crucial to utilize digital marketing strategies to increase app downloads and promote your content effectively.
3. Choose The Monetization Model
When it comes to developing a live-streaming app, generating revenue is the ultimate goal. Therefore it is crucial to select the right monetization model that will effectively maximize your earnings.
Some of the popular monetization models include
- Subscription-Based Model
The subscription-based model involves users paying a recurring fee, either monthly or annually, in exchange for access to premium content. This model is well-suited for live-streaming apps that offer a large amount of premium content or unique features that are not available on other platforms.
- Pay Per View
Pay-per-view is a monetization strategy in which users are charged a fee for accessing individual pieces of content. This model is often used in live streaming apps where users pay a one-time fee to watch a live event. Whether it can be a concert, sporting event, or exclusive lecture.
The advantage of PPV is that it provides a way for creators to generate revenue from unique and time-sensitive events. For instance, if a popular musician is hosting a live concert, then a live streaming app could offer access to the concert for a fee. In this way, both the artist and the app can generate revenue from the event.
- Advertising-based Model
In an advertising-based model, companies pay to display advertisements on the live-streaming app. By offering a platform to media buyers, the app generates revenue by providing space for promoting its products or services. This model is particularly effective if the app has a large and engaged user base. As it provides a captive audience for advertisers to reach.
Furthermore, in this model, the app displays advertisements in various forms such as pre-roll ads, mid-roll ads, or post-roll ads.
Pre-roll ads appear before the content starts, mid-roll ads appear during the content, and post-roll ads appear after the content has ended. The app can also display banner ads or interstitial ads, which are full-screen ads that appear between content.
4. Know About The App Requirements
Now that you are done with the significant planning, it’s time to proceed to the first stage of mobile app development. Here you need to understand your app requirements. As this stage will help you identify the necessary factors that will impact the functionality and performance of your app.
Below are some of the key pointers that you might consider!
- Internet Speed
Internet speed is a crucial aspect that impacts the quality of your video streaming app. The minimum internet speed required to stream standard-definition movies is over 2 MB per second. However, this may vary depending on several factors such as
- The quality of the content you plan to offer in your app.
- The file size of the video.
- The number of users accessing the content simultaneously.
Overall, in order to ensure an optimal streaming experience, it is essential to have a robust internet speed that can handle the demands of your users.
- Cloud Hosting & Computing Architecture
This factor plays a very important role in determining the performance and efficiency of a video streaming app. As such, it is imperative to consider this aspect from the very beginning of the app development process.
With cloud computing, you have access to scalable resources and can easily add or remove computing power as needed. This is especially important for video streaming apps as the amount of data and traffic can fluctuate rapidly in these.
Security should be the prime concern while developing a video streaming app. Because no user wants their data to be accessed by an unauthorized person. That’s why you must ensure that the user’s data and the content being streamed are protected from security breaches.
- Subscription Logs
This feature will help you manage the increasing number of users and their data effectively. With subscription logs integration you will be able to determine
- The video streaming quality.
- The view streaming data information.
- The number of screens that the user is logged in.
As a whole, you can use this information to tailor your content offerings, provide recommendations and improve the overall user experience.
5. Create an MVP Model
Do you know why MVP is an important part of mobile app development? This is because it allows validating ideas about the app before investing a significant amount of time and resources into the full development process.
6. Gather Feedback
After creating an MVP, it is crucial to validate it through diverse methods and gather feedback from early adopters. This will help you understand the pain points and essential features required in the app. And also provide insights into how users react to it.
As to ensure the success of your MVP, it is important to test it in a real-world scenario.
Overall, it is essential to understand the user’s perspective and what they expect from the app. Gathering feedback from early adopters will help you make necessary changes and improvements to your MVP. This iterative approach to custom app development will ensure that your MVP is well-received by users and meets their expectations.
How Much Does It Cost To Develop A Video Streaming App Like Netflix
Platform dependency is another important factor that affects the cost of a live streaming app. There are several popular platforms available including iOS, Android, and the web. Each platform has its own set of features and development challenges, which can impact the app development cost.
Additionally, if you want to launch the app on both iOS and Android platforms simultaneously, then you can go for cross-platform app development. This approach involves using a single codebase that can run on multiple platforms. Thereby reducing the overall development cost and time.
2. Features & Tech Stack
The cost of developing a live-streaming app is highly dependent on the features and technologies you choose to include in your app. The more complex the features, the higher the cost will be.
3. Payment Gateway
The cost of integrating a payment gateway into your live-streaming app can vary depending on the provider you choose. Some providers may offer basic payment integration for free, while others may charge a fee for their services.
The cost can also vary depending on the complexity of the payment process and the security measures required to protect sensitive data. Therefore, it is important to carefully evaluate your options and consider factors such as cost, reliability, and security when choosing a payment gateway provider.
On average, the cost of developing a basic video streaming app for one platform can range from $50,000 to $100,000. While the cost of a complex app with multiple platforms can range from $150,000 to $250,000 or even more. (Although, these numbers are not precise.)
That’s why it is advisable to consult with an on-demand app development company to know the exact cost as it will vary depending on your specific requirements and goals.
Latest Technologies To Make Your App Successful
The video streaming industry is continuously evolving and new technologies are emerging. That’s why to make your app successful and stand out in the market it is important to use those technologies. Below are some of the latest ones to consider.
A. Artificial Intelligence
It is one of the latest and most innovative technologies in the tech industry. AI plays a crucial role in improving the overall user experience by personalizing the content for each individual user.
Furthermore, content piracy is a major issue faced by video streaming apps and AI plays a significant role in detecting it. AI algorithms detect unauthorized distribution and usage of the content of the app. This ensures that the app content is protected and only accessible to authorized users.
B. 5G Network Technology
The 5G Network promises to revolutionize the way we interact with technology.
The high-speed connectivity of 5G networks allows for seamless video playback with minimal buffering and lag. This improved connectivity results in better video quality, making the overall user experience more enjoyable and engaging.
Additionally, 5G technology can also help to improve the performance of video streaming apps, allowing for more efficient data transfer and increased responsiveness.
By incorporating 5G technology into your streaming app, you can provide your users with a seamless and high-quality viewing experience.
By utilizing the decentralized and secure nature of blockchain, video streaming apps can protect their content from piracy. And provide a more secure and transparent payment system for users at the same time.
The use of blockchain development services for payments allows for fast and secure transactions without the need for intermediaries. This will lead to a more efficient and cost-effective process for both the users and the app.
Lastly, Blockchain technology offers an immutable record-keeping system. This ensures that the content distribution process is more secure and transparent.
Bonus Read: Software Development Trends that will define 2023.
D. Machine Learning
The trend of using machine learning in the video streaming industry has been increasing over the last few years. Some common applications of machine learning in video streaming include
- Recommendation Systems: To recommend content to users based on their viewing history, preferences, and other factors.
- Content Optimisation: Optimizing video quality, resolution, and format according to the viewer’s device and network conditions.
- Object Detection & Recognition: To automatically detect and categorize objects and scenes in videos for easier search and contact classification.
- Automated Content Moderation: To filter out unwanted or inappropriate content using computer vision and NLP algorithms.
Building a successful app like Netflix requires a combination of creativity, technical expertise, and a deep understanding of the market. With the right mix of features and monetization strategies, you can create a platform that appeals to a large audience and generates significant revenue.
If you are considering developing a video streaming app like Netflix, you are in luck! However, the journey to creating a successful app can be challenging especially if you lack the technical knowledge or the resources required to get started. But don’t worry. We are here to help you!
At DianApps, we have a team of experienced app developers who specialize in delivering top-notch development solutions. Our experts are well-versed in the latest app development technologies and can provide you with all the guidance you need.
As a reliable app development company, we understand that every business is unique and that’s why we take a custom approach to app development. From the initial concept to the final product, we will be on your side, ensuring that everything runs smoothly and efficiently.
So if you are ready to take the next step and build a video streaming app like Netflix, get in touch with us today!