https://www.prismetric.com/video-streaming-app-development-cost/
Features and Cost to develop a video streaming app like Netflix, along with a brief overview on why it is one of the most popular apps on OTT platforms.
If you love watching movies or video series, you will have a high chance of having a Netflix account.
Netflix is the grand-daddy of video-on-demand services today and has outgrown many traditional media houses.
You can gauge the impact of Netflix on the world by the fact that today Netflix consumes around 15% of the world’s total bandwidth.
With the onset of smartphones, Netflix exploded, as users have now got freedom of watching their favorite content anywhere, anytime. The success of Netflix has started a mad dash amongst tech entrepreneurs towards the leprechaun’s gold, video on demand (VOD) apps.
Being an expert in mobile app development, we thought we should share our knowledge regarding how you, as an entrepreneur, can build an app like NETFLIX and become the director of your success movie.
So lights, camera, sound, and Action!
History of NETFLIX
Two serial entrepreneurs Marc Randolph and Reed Hastings started the company in Scotts Valley and have grown to become the world’s leading internet entertainment platform. Working on the principle of Blockbuster, Netflix first started as a movie-rental service solely focused on providing a web-based movie rental service.
The term Netflix is a combination of the words Net (internet) and flicks(movies). Once the company started online streaming service in 2010, there was no looking back. As its biggest competitor, Blockbuster filed for bankruptcy in 2010; the crown was open for Netflix to take.
With over 150 million subscribers in around 190 countries, Netflix has taken over the world in the video on demand industry.
How Much Does It Cost to Build Video Streaming App Like Netflix?
The cost of building an app like Netflix or any app for that matter depends on the number and the complexity of the features that you decide to inculcate. While a simple video streaming app will cost less, the costs will shoot up as you go on adding features like Multi-language support, Multi-screen compatibility and so on. Hence if you want to keep the costs down start with a bare minimum app and then build the feature list once you get a hang of things.
Usually, a basic to medium complexity app will cost you around $12,000-$25,000. The more complex the app is, the more would be the cost of developing it.The cost also depends upon the location of your app developers. If your app development company is from the US or Western Europe, it will charge you around 3-4 times more than an Indian App Development Company.
We have just scratched the tip of the iceberg in terms of the online video streaming market. The market potential is enormous. It is expected that by 2021, the digital video penetration will reach around 84% in the US alone, with 236 million digital viewers hooked up to digital content.
With so much potential, competition is bound to be there. In the VOD market, Netflix currently faces competition from the following players.
- Amazon Prime
- Disney Hotstar
- Hulu
- HBO Now
The entry barriers to the industry are low, and regions like Asia-Pacific are relatively less explored. It is luring big tech companies like Google, Apple, HBO, Disney, and others to the industry.
There is little differentiation between various players in terms of subscription plans and video quality. Hence the real distinction lies in producing a wide variety of original content. The industry is becoming a media production industry.
Netflix currently enjoys a leadership position in the industry and has a user churn rate of only 9%. It is producing original shows like “House of Cards” and is reducing its dependence on production houses like Disney, who are pulling out their content from Netflix and other VOD apps.
Differentiating factors contributing to the success of Netflix
No Advertisement Model
What is the most annoying thing about TVs? We believe the unanimous answer would be commercials that spoil the fun of watching your favorite content. Netflix has very smartly addressed this issue by providing an advertisement free platform. The no-advertisement policy of Netflix is a significant reason why people subscribe to Netflix in such huge numbers.
Original content
Netflix knew that once the big media companies like Disney get a taste of OTT platforms, they will stop selling content to Netflix. That’s why Netflix has invested in producing original content. The decision has proven to be a game-changer for Netflix. The platform has produced successful shows like House of cards and Fractured, The king, and so on. The original content produced by Netflix has attracted many users on to the platform.
Differentiating factors contributing to the success of competitors
Amazon prime video is gaining ground against Netflix by adopting the same strategy as Netflix, original content, and ad-free programs. The advantage that Amazon Prime has is that its parent company, Amazon has deep pockets, and they provide premium features on its e-commerce platform, also along with the Amazon prime subscription.
YouTube is another competitor that is posing a threat to the dominion of Netflix. A pioneer in user-generated content, YouTube has started offering no-ad experience, live streaming, and play in the background features with its YouTube premium subscription.
Hulu is another worthy competitor of Netflix. Hulu’s advantage is that it is a platform created by media giants like 21st Century Fox, Time Warner, and Walt Disney. Hence the platform has access to a wide variety of content already.
How does Netflix work?
Netflix follows an OTT(over the top) model in its app that allows people to watch their favorite shows, movies, or events without needing to download them. With ever-increasing reach of high-speed internet networks, the idea of downloading your film or show to watch it later just didn’t work. Netflix saw the opportunity and started streaming video in HD quality.
In OTT streaming Netflix sends the whole video in tiny chunks. Thus, ensuring that only little parts of the video are sent to your device at a time. This way, the network does not get clogged with too much data. Also, the user’s device does not keep the downloaded data, and the data gets deleted automatically.
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