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It’s hard to beat Netflix in terms of popularity. However, it is not the only content streaming service around.
Hulu, Amazon, Disney+, and others have found their niches. Does it mean you can repeat their success? Well, why not, if you choose the right strategy.
Let’s review the main stages you’ll have to go through and try to figure out the total cost of the project.
While we are speaking not only about Netflix, we’ll take it as an example, as it illustrates the functioning of streaming services well.
It provides on-demand video to its subscribers for a monthly fee. Once paying this fee, a user gets unlimited access to content from almost any device.
A lot of extra features let customize the app and add convenience.
Developing a streaming service from scratch is a complicated process.
No matter whether you are looking for how to make live streaming app or a website like Netflix, Here are six main steps you’ll have to go through.
Developing an app like Netflix is half the battle. On the next stage, you will have to think about a business model to make the most of your product.
Needless to explain, the mere fact of creating an app like Netflix won’t make you a millionaire overnight.
You’ll have to work hard to make your product profitable. In particular, you’ll need to develop a business model thoroughly.
Here are the main things to consider.
The main model of monetization for video streaming platforms is the subscription model where users pay a monthly (quarterly, yearly) fee according to their subscription plans.
Other possible models are video purchasing an advertisement.
The chart below displays the most popular monetization models depending on the type of the content streaming platform.
It’s important to understand the concept of the customer lifetime value (CLV) and be able to calculate it for your customers.
In a nutshell, this concept says that you shouldn’t be afraid of losing money on your customers in a short-term perspective if these customers will bring you profit in a long-term perspective.
There is one simple rule: to make customers buy more services you should keep them active.
Track each client, study his/her behavior, and offer new activities regularly.
This method is widely used by Netflix, which reduced the outflow of its customers by 4%.
Marketing is important but don’t go overboard with it. A well-thought marketing campaign is the key to success.
You need to understand that clients come from various channels, and your goal is to estimate the lifetime value of each group to decide how much you can spend on each channel.
The tech stack includes programmer tools (programming languages, frameworks, templates, and software) used to create the desired product.
In the chart below, you can see an approximate set of programming languages used to build some popular platforms.
Developing a website like Netflix takes long.
To speed up the process developers often use special third-party services.
Some examples are in the following chart.
While these third-party services are really useful, they often don’t come free of charge.
Here are approximate prices for using some popular tools.
To launch a streaming platform you should create an MVP (minimal viable product) first.
Its cost largely depends on the development time, which, in turn, is determined by the feature set and the number of platforms.
In the chart below, you can see average prices based on an hourly rate of $50.
As for the number of platforms, of course, best of all is to make your service compatible with all existing platforms.
However, when it comes to developing an MVP, you may start with a single OS – Android or iOS.
Choose the one that is more popular in your target region.
Basic features for a minimal viable product include the following ones.
If an MVP version of your project met or exceeded your expectations, you may want to develop a full-featured service with an expanded feature set.
An approximate price of such a platform development is displayed in the chart below.
Additional features can include the following ones:
These features are not mandatory, but you may add them if you wish.
Once your streaming app is created, make sure it complies with basic requirements to platforms of this type:
Developing a good content streaming service from scratch is an ambitious and complicated task with many things to consider.
The total development cost depends on two key factors: the number of hours required and the hourly rate of a developer team.
For an MVP version, an approximate development time varies from 1000 to 1500 hours.
Developing a full-featured product takes from 1500 to 3000 hours. Thus, with an hourly rate of $50, the cost of an MVP version can reach $50 000 – $70 000.
A service with an expanded feature set costs $115 000 – $134 000.