Nowadays, video streaming apps like Netflix are growing more than ever before. By 2024, the over-the-top (OTT) media industry will be worth nearly $160 billion. Despite increased competition, Netflix remains king due to its simplicity and uniqueness. Therefore, if you want to know “How to make a streaming service like Netflix? How much does it cost to build a streaming service? or How to start my own streaming service?” Don’t worry, this blog has everything you will need.

Without further ado, let’s get started!

So, you’ve planned to make a streaming service? Great! But, the question is – how to start a streaming service like Netflix, Hulu, or Amazon Prime Video? Should you make a Netflix clone or build a streaming platform? Let’s go on a journey together to learn how to start a streaming business.

Before we dive in and define how to create a streaming service, let’s look at some statistics here:

Insights Into Industry Growth: How Popular Is Streaming Service?

• In 2019, the global video streaming market was worth $42.6 billion. From 2020 to 2027, the market will grow at a 20.4% annual rate and reach more than $150 billion. (Grand View Research)
• According to statistics, approximately 76.7% of US consumers get entertainment from streaming and on-demand content.
• OTT platforms such as Netflix, XUMO, Starz, Sling, Showtime, Amazon Prime, and others have over 200 million users in the US.
• The number of video streaming service users will reach 14 billion by 2026. (Statista)
• 90% of Americans prefer watching videos on the internet to watching television.
• According to the most recent OTT market statistics, the market worth $121.61 billion in 2019 will grow to $1.039 trillion by 2027.

It is no surprise that the market will experience rapid growth in the coming years. As a result, businesses are wondering how to create a streaming service that users will enjoy. After reading the upcoming sections, you will understand everything about the entire process.

What Are the Types of Streaming Services?

Netflix and Twitch are video streaming services, but no one would compare them because they take very different approaches to streaming. They are not only conceptually distinct but also content-wise. Netflix offers streaming video on demand (SVoD). Twitch, on the other hand, is a service that provides live video streaming.

Some of the different types of streaming services are as follows:

• Streaming Video on Demand

SVoD is similar to downloading video to your computer, but without the actual downloading. You can watch a movie or TV show whenever the mood strikes and the stars align (i.e., you have time and opportunity). 

Currently, Netflix is the world’s leading streaming service for movies and TV shows, including those produced by the company. It is available in 190+ countries and consumes 15% of global internet bandwidth. The company has developed its own personalization algorithm that stores and analyses user data using Apache Kafka and Amazon DynamoDB.

• Video Live-Streaming/Broadcasting

Live video, in general, is streamed on a specific channel in real-time, and you either catch it or miss it. Live streaming is becoming increasingly popular outside of the gaming industry. People use live-streaming features on Facebook, Instagram, and TikTok to stream anything they want. One of the benefits of live streaming is that viewers can comment on the video in real-time, and the streamer can respond to comments immediately if they wish.

• TV Live-Streaming

TV live-streaming allows users to watch TV over the internet rather than installing cables in their homes. It’s not the same as user-generated content like Twitch or on-demand video streaming. Many users prefer TV streaming to stay up-to-date with news and sports broadcasts, though TV streaming also provides movies and TV series – just not on-demand.

• Audio Streaming

Most popular audio streaming services provide on-demand streaming. Spotify, Apple Music, Amazon, and Google’s YouTube Music are all options for music. For podcasts, the main providers are Spotify, Google Podcasts, Apple Podcasts, and Amazon Audible.

What Are the Potential Benefits of Creating a Streaming Service?

• Streaming services give you access to more media channels.
• You don’t need to watch commercials.
• You can view the most important sports event.
• You can save money on tickets.
• Watching sports or movies at home is more convenient.
• Subscription television can keep your kids entertained.
• The most recent movies and television shows are always available.
• You can use Pay TV for educational purposes.
• You can keep your children from seeing inappropriate content by booking a wide range of plans.
• Particularly useful in areas where there is nothing else to do.
• You are no longer required to obtain files illegally.
• Using streaming services does not necessitate the use of storage space.
• Ordering streaming services is simple.
• Feeling of liberty

Step-By-Step Guide: How to Start Your Own Streaming Service?

Creating a streaming service app like Netflix may seem to be a simple task, but it is not. To create a highly interactive, engaging, and responsive streaming service app like Netflix, follow these steps:

# Find Your Niche

Once you’ve decided to build your streaming platform, the first thing you should do is define your niche. Of course, this could include entertainment programs, top TV shows, stand-up comedy, and documentaries. But why not try something different? Your online video platform‘s specific functionality, as well as its unique content, could become your punch line.

# Focus on Your Target Market

The streaming market is becoming increasingly competitive, with new streaming players entering the fray every month. Unfortunately, many of them fail by the time you hear their name.

To stay in the game, you should focus on a specific audience of users rather than trying to embrace the entire world. It will benefit you more if you define your target audience clearly from the start and make every effort to win their hearts. Analyze the market, conduct user research, identify your customers’ pain points, and close the gaps.

# Find Your Content

Content reigns supreme, especially when it comes to video streaming platforms. Finding content that relates to your customer’s interests is therefore critical. You can, however, use two types of content to accomplish this: licensed content and self-created content. You can also make content for streaming. Streaming service subscription growth is driven by exclusive original content. With 447+ original shows available for streaming, Netflix took the lead.

# Select the Monetization Model

Determine the best monetization model for your platform. Here are some monetization models to consider:

Advertising: Companies can pay you to run video advertisements on your platform. This monetization strategy, however, will only work if your platform becomes well-known among users.

Pay-Per-View: This is the simplest pricing scheme, in which the user pays for each video that he or she watches. This model works best if you build a platform that broadcasts trade shows, sporting events, boxing, conferences, etc.

Subscription: Professional broadcasters benefit from the subscription model. A monthly fee is charged to subscribers to gain access to a content library. You can use this monetization technique if you consistently publish new content on your platform.

# Know the Streaming Platform Requirements

You must meet certain requirements to build your dream streaming platform. Before you launch your streaming service, here is a checklist of things to think about:

Cloud Hosting and Computing Architecture: You need a secure space to store your content because you deal with a ample amount of it. As a result, we recommend cloud hosting.

Network Connectivity: If you expect your platform to grow in the future, you must make it flexible to the increased traffic.

Security: When dealing with licensed content and user data, security is crucial.

Payment Gateway: It is best to offer your subscribers multiple payment options.

# Develop an On-Demand Streaming Service MVP 

The development stage is the final step in the process of creating a streaming service. During this stage, you must clarify functional and non-functional requirements, set timelines, consider design, and so on.

You can conduct an extensive user research, fill in any gaps, and rent top content to stream. However, until you test your platform with real users, you will never know if it is acceptable. The MVP stage is for testing your product’s usability and gathering user feedback. 

How Much Does It Cost to Start a Streaming Service?

Building a video streaming business no longer has to be expensive! Once you’ve decided how to make a streaming business, estimating app development costs will be simple. However, to create a streaming service, you will need a significant amount of time and money. The development process includes the creation of various apps for end users and administrators. As a result, the price will increase even more.

Some of the factors that determine the cost of app development are as follows:

• App Features
• Cloud Hosting
• Streaming Devices
• Multilingual Content Delivery
• Content Protection
• Payment Gateway

And considerably more.

Concluding Notes

Netflix has become a part of our lives, allowing us to watch lots of shows and movies without breaking the bank. The subscription-based model allows the company to scale and invest in technological innovations. When developing a video streaming app, look at industry leaders like Netflix to be your successful example. After that, you can tailor their business strategy to your video service. So, if you’re ready to move from ideation to development, it’s time to schedule a free consultation with experts.