How Much Does It Cost to Develop a Streaming App Like Netflix?

 

Quick Summary

You must know your customers' preferences to build a video streaming application like Netflix. Use competitor research to find gaps and integrate them into your application to create your unique identity. The cost of building an app like Netflix isn’t suitable for startups; hence, to reduce costs, start with an MVP, outsource the work, and use open-source technologies. 

Today, everything’s about convenience, as mobile applications make everything easier. There's an app for everything from groceries, booking a ticket, and investing your life savings. Similarly, getting entertainment is easier in the age of video streaming platforms, and they also bring the much-coveted convenience. 

To build an on-demand video streaming app like Netflix, you need several things, including the patience to compete in a highly competitive market and understanding how to create one. You bring the zeal to compete, and we will share the process to make the best possible application. 

What is an On-demand Video Streaming App?

Video streaming on demand services like Netflix, Hulu, Prime Video, etc., bring entertainment to your screens. Gathering content from different providers and their production, these applications aggregate the entire content onto a single platform accessible through a subscription, renewable monthly or yearly. 

Often referred to as Over the Top (OTT), Netflix-like platforms not only show movies, but also have TV shows, and some might also present live TV programs. It all depends on your requirements, where these platforms use adaptive streaming technology to deliver a smooth and glitch-free playback experience. 

Moving on, we will learn about the design and development process of an app like Netflix and the cost of video streaming app development. 

Market Overview of On Demand Entertainment App like Netflix

The OTT video market is projected to grow by 6.56% annually between 2025 and 2029, totalling $443.29 billion by 2029. Advertising is these platforms' most significant revenue stream; hence, making advertising easier to build video streaming apps is essential. 

If you are catering to a global audience, your target audience will also reach 4.9 billion users by 2029. This makes building the best subscription video on demand applications like Netflix even more critical. 

How to Develop a Subscription-Based Video Streaming App?

Netflix clone app development has three stages: Planning, Creation, and Improvements. For this blog, we will focus on the Planning and Creation stages. 

1. Define your Target Audience

To begin with Netflix-like app development, understand your target audience and what makes them use an OTT application. This means studying their habits, content preferences, ability to pay, and how much they can pay to access content on your platform. 

In addition to this, research your competitors. Know their strengths, customer base, what users like about them, and what they dislike. Doing so will help you identify areas of opportunity and where you can differentiate yourself from your competitors. 

2. UI/UX Design

Work on the application’s design, including the interface, graphics, navigation, animations, and everything else. Your goal should be to create a minimalist, intuitive, and accessible application. Ensure your users have control over the application. This means they must be able to access the features they need and watch content effortlessly. 

Areas to Focus:

Understand your users' needs and behavior with empathy. 

Personalize every touchpoint; share personalized recommendations and ask for explicit feedback. 

The design must be intuitive and straightforward. 

Netflix is the best example of UI/UX for streaming apps, showing how it should be done.

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3. On Demand Video Streaming App Development

Now let’s create the backend of a video streaming app. 

Create a microservices architecture that operates independently, ensuring you can scale and update on demand video streaming app as and when required. 

Build the cloud infrastructure, which ensures global content distribution through globalized servers. 

Work on the database structure to handle massive volumes of data and content metadata. 

Netflix uses a Zuul API gateway to route user requests across the different microservices architecture. 

Create the structure for backend video transcoding and content indexing while focusing on reducing latency. 

4. Application Testing and Analysis

Remember, rigorous testing is the key to building the best on-demand streaming application like Netflix and also helps optimize the cost. Here’s how: testing the application comprehensively from all aspects ensures you launch the best possible version of the application. 

You need to conduct functional testing, performance testing, security testing, usability testing, and unit testing. These will improve your OTT platform development and deployment, ensuring you create the best possible version of the streaming solution. 

5. Deployment and Maintenance

Once your on-demand entertainment app is built, deploy it on the relevant platforms. Follow the upload guidelines when publishing the mobile application, and launching for the web will be easier. 

But after the launch, ensure you have a team for monitoring, maintenance, and updates. As you gain market traction, keep adding more features and making changes to the design as required. The key is to keep improving as you receive customer feedback. 

Want to know how to build a video streaming app like Twitch, Here’s the guide.

The Cost for On Demand Video Streaming App Solution

There isn't a simple answer to how much it costs to build streaming on demand services. The cost and features of video-on-demand application can vary based on several factors, including

Features

An MVP costs less because it has fewer features than a full-scale version. Startups often build an MVP first to check the market response, and the basic features they ought to add are;

1. User registration and login
2. Multiple user profiles
3. Content search and filters
4. Watch list
5. Secure payment gateways
6. Push notifications
7. User management
8. Content management system
9. Subscription management
10. User feedback and reporting

In addition to these, there are advanced features, and adding them will also increase the cost. This includes;

1. Personalized AI recommendations
2. Adaptive bitrate streaming
3. Watch offline
4. Multi-device synchronization
5. Social sharing
6. Centralized dashboard
7. Live streaming preview
8. Parental controls
9. AR/VR technology integration
10. Gaming

Talk to our on-demand video streaming app experts to launch a more innovative and faster application within a budget. 

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• Development Team Location

Hiring a development team for an OTT platform in the USA will cost more than hiring one from Ukraine, India, Latin America, the Philippines, etc. 

The hourly rate of a team working from the USA is between $120 and $150, but the same if you hire a team from Asia or Latin America is between $25 to $50. 

• Deployment Structure

A native application meant only for iOS or Android will cost more than a cross-platform application. Native development offers more flexibility in terms of design and structure. Still, it also costs more as everything has to be done according to the device, its screen size, and capabilities. 

However, with hybrid or cross-platform app development, the costs of on-demand streaming applications are relatively less. Here, you will have a single codebase customized to iOS and Android, but some compromises must be made regarding fluidity, performance, and security. 

• Development Methodology

Developers usually use two development methodologies to build streaming on-demand services applications: Netflix, Agile, and Waterfall. Agile is an iterative process where changes are made with continuous feedback, and there’s enough flexibility to allow for innovation without increasing the cost. 

However, with the waterfall model, developers fix everything from the beginning, and the rigidity of this method may lead to expensive reworks later, which increases the overall cost. 

How to Reduce OTT App Development Cost?

To build an on-demand streaming application like Netflix, you must spend around $200,000, including everything from business analysis to design, development, testing, and deployment. But there are ways to bring this cost down;

• Build an MVP First: To reduce the cost of developing an OTT platform, create an MVP first. Launch the app with the bare essentials, and then you can pivot it once it gains traction and the demand grows. 

• Outsource to Cost-Efficient Teams: Hiring OTT app development company from Asian and Latin American regions will ensure you have the same high-quality product but at a much lower cost. 

• Use Third-Party Services: Ask the development team to use available video hosting and analytics platforms. Platforms like Firebase, AWS, Google Cloud, etc. work on a pay-as-you-go method, ensuring you pay for what you use. 

• Use Open Source Technologies: Open source development technologies like Flutter, React Native, and Node.js ensure a faster development cycle with lower costs, as you will get many pre-built structures customizable to your needs. 

To Sum it Up

The world thrives on instant content personalized to users' preferences. Launching an application like Netflix is challenging, but with the right approach and understanding, you can build a product to compete with established giants. Use innovative development methodologies and cost optimization techniques to ensure your OTT platform stands out. 

Don’t just build an application! Create a service that delivers value and a great user experience. Innovate the product with a market understanding to lead the industry, but with a solid plan. 

Apps On Demand provides on-demand video streaming app development services focusing on user-friendliness, intuitiveness, and scalability.