The entertainment landscape has been dramatically transformed with the evolution of streaming services like Netflix, Hulu, and Disney+. The appeal of creating a successful streaming platform is clear for aspiring entrepreneurs. This article explores the rationale behind building a streaming service, the process of developing an app similar to Netflix, business models, necessary tools, essential features, important considerations, and the overall cost involved.

Why Building a Streaming Service is Beneficial

Before delving into the technical details of Netflix’s streaming service development, it is important to consider why it is beneficial. So, let’s review the primary advantages you can receive by building your own streaming platform.

Growing demand and market expansion

The streaming service industry has experienced significant expansion due to the prevalence of high-speed internet and the rise of smart devices. Global projections indicate substantial growth in the video streaming market in the foreseeable future, driven by evolving consumer preferences towards on-demand content instead of traditional cable television.

Multiple revenue opportunities

Streaming services have multiple revenue streams, including subscriptions, advertisements, pay-per-view, and in-app purchases, which help create a stable income and reduce reliance on a single source of revenue.

Content ownership and flexibility

Running a streaming service offers control over the type of content provided, enabling a focus on niche markets or specific audience demographics. This customization level can lead to higher user engagement and satisfaction, fostering a loyal customer base.

How to Create an App Like Netflix

Start with deep market research to understand your audience, competitors, and current trends. Identify unique content niches that are underserved and outline a clear value proposition. Decide whether you want to build music streaming app, create a video-on-demand platform, or another option. Develop a business plan that covers objectives, target demographics, content strategy, and monetization methods.

Find a software development partner

Decide whether to build your platform in-house or outsource development. In-house development offers greater control but requires substantial resources and time. Outsourcing can be cost-effective and quick, and it provides access to a wide talent pool worldwide.

Discuss project requirements

Share your streaming service vision with your IT partner. Together, you will define a feature list for your platform and create a design concept. Your vendor’s team will clearly estimate the required team composition, timeline, and costs.

Develop and launch

After receiving all requirements, the software development team will start building your streaming service. They will implement all the features create applications frontend, and backend (service side). The development process will be accompanied by thorough testing to ensure all the features work correctly and your platform can handle high traffic. After completion of the development and testing, your IT team is ready to launch your streaming service to make it accessible to the audience.

Essential Features of a Media Streaming Service

Each media service has its own unique set of features, differentiating it from others. However, there is a list of basic features that are essential for any streaming platform. Let’s explore them:

User profiles and personalization

Users can create profiles and set preferences to receive content recommendations tailored to their viewing history and tastes, improving user experience and boosting retention rates.

Search and navigation

An intuitive search function and easy navigation are essential. Categorize content by genre, add filters, and ensure a smooth browsing experience to help users find what they want quickly.

Multi-platform support

It is important to make sure that your service can be easily accessed on different devices, such as smartphones, tablets, smart TVs, and desktops. Having a responsive design and cross-platform compatibility is essential for reaching a wider audience.

Offline viewing

Offering offline viewing capabilities allows users with limited internet capabilities to access your content or attract those who prefer to watch videos on the go.

Parental controls

Implement a parental controls module to restrict access to certain content based on age ratings. This feature is essential for creating a family-friendly environment.

Social features

Including social sharing options, user reviews, ratings, and watch parties can enhance engagement and the communal viewing experience.

Total Cost to Build a Streaming Service

So, how much does it cost to create a streaming service like Netflix? Let’s review all the price-driving factors.

Development costs: the cost of developing a streaming service varies based on complexity and development approach. In-house development can range from $100,000 to $500,000+, while outsourcing might cost between $50,000 and $300,000+.

Licensing and content acquisition: licensing popular content can be expensive, with costs ranging from $1,000 to $10,000 per title. Original content production can significantly vary, with some series costing millions per episode.

Infrastructure and hosting: the costs associated with ongoing infrastructure and hosting depend on the scale of the operation. Expenses for CDNs, video hosting, and cloud services can vary from $5,000 to $50,000 per month, based on user traffic and content volume.

Marketing and promotion. A thought-out marketing strategy is critical for attracting and retaining users. Initial campaigns can cost between $20,000 and $100,000, with ongoing promotion costs varying based on strategy and reach.

Considering all factors, the total cost to build and launch a streaming service can range from $300,000 to over $1 million. Ongoing operational costs will depend on user growth, content expansion, and marketing efforts.

Developing a streaming service similar to Netflix requires extensive planning, resources, and financial investment. By conducting market research, selecting an appropriate business model, utilizing the right tools, and prioritizing key features, one can establish a successful platform. Despite the initial financial requirements, the potential for growth and profit makes it a viable opportunity in the constantly evolving digital entertainment sector.

Yuliya Melnik is a technical writer at Cleveroad, a social media app development company in Ukraine. She is passionate about innovative technologies that make the world a better place and loves creating content that evokes vivid emotions.