“In the world of entertainment, we are competing with sleep.”

These words by Reed Hastings, co-founder of Netflix, encapsulate the ever-intensifying battle to capture the hearts and attention of viewer.
In a world where traditional TV was losing its grip on audiences there was a group of tech visionaries armed with creativity and innovation to change the entertainment preferences.

With what?

The answer to this question is OTT APP DEVELOPMENT.

What Is An OTT Platform?

OTT (Over-The-Top) apps deliver audio, video, or multimedia content over the internet directly to users’ devices. It bypasses traditional cable and satellite TV subscriptions to offer a vast library of movies, TV shows, documentaries, anime, live content, and more.

OTT content is accessible over various devices like smartphones, tablets, smart TVs, and streaming players through applications. This means that custom OTT solutions provide wider reach and greater accessibility and can easily tap into the global markets.

Popular OTT applications like Netflix, YouTube, Hulu, Disney+, Amazon Prime Video, and many others have revolutionized how audiences consume and interact with media.

With a question of how to build OTT apps; let’s understand the particulars of OTT apps development:

Why Do People Prefer OTT Apps Over Traditional Platforms?

Several factors drive the preference for OTT apps over traditional platforms-

  • OTT provides personalization as it uses sophisticated algorithms to recommend content according to the individual’s preferences.
  • The biggest advantage is that the users have the freedom to watch content according to their convenience, eliminating the rigid TV schedules.
  • OTT applications offer flexibility in pricing models. Users can select subscription plans that align with their budget and content preferences.
  • The OTT giants like Netflix and Amazon Prime Video provide exclusive original content. These apps invest heavily in original content and unique shows to attract subscribers.
  • These platforms often permit multiple user profiles under a single subscription to view content according to the preference under their profile.
  • Certain OTT providers bundle their video streaming with music or complementary OTT app development services to add value to subscribers.

Planning On Creating A Netflix Clone App? Click here to learn more!

OTT App Development Market for 2024 and Why It’s Great Opportunity for Investment In 2024?

Custom OTT platforms are booming with the rise in demand for video streaming content. According to Statista, the OTT software development market anticipates generating over $200 billion in revenue by 2024 globally. However, the total number of active users across multiple OTT platforms is expected to reach 761 million by 2027.

These statistics show exponential growth and a growing preference for on-demand content. OTT apps provide businesses with global reach while offering content to diverse audiences without the need for traditional broadcast infrastructure. In the digital era, where streaming is the epitome of online entertainment, investing in OTT platform development shows a profitable opportunity for businesses.

Key Benefits of Investing in OTT App Development

Investing in OTT application development unlocks a world of opportunities in the digital entertainment domain. It is a strategic move that aligns with modern viewing habits, making it a lucrative business endeavor.
Let’s understand the key benefits of investing in OTT platform development:

Global Reach

The major benefit of OTT app development is the app transcends geographical boundaries benefitting content video streaming providers to connect with the audience worldwide. The popularity of streaming services is increasing with each passing day.

This provides a custom OTT platform for businesses to distribute content to diverse markets without the need for conventional broadcasting services. The global accessibility is set to maximize the audience and revenue potential, making OTT platform development a lucrative investment option.

Extended Monetization Opportunities

While investing in OTT software development, businesses get a chance to diversify their revenue streams through subscription models, pay-per-view options, and targeted advertising.

Furthermore, OTT apps can provide partnerships and sponsorships to expand monetization avenues. This segment of the digital entertainment industry is an advantageous path for sustainable profitability.

Growing Market

The OTT industry is expanding exponentially as the demand for live-streaming apps grows. The changing viewing habits, increased internet penetration, and expansion of smart devices drive this growth. Entering this market will allow businesses to capture a vast user base and stay ahead of competitors.

Increased Conversion

OTT apps provide a smooth user experience with easy-to-access high-quality content. With features like personalized recommendations and a user-friendly interface, these OTT applications encourage recurring usage. This increased user engagement often results in higher conversion rates and converts casual views into loyal customers.

Cost Savings

The increase in OTT apps’ popularity eliminates the need for traditional broadcast infrastructure, which can be costly to maintain.

Additionally, OTT apps provide a cost-effective distribution channel for content producers which reduces the expenses associated with physical media and cable networks. OTT apps allow businesses to adapt to changing user demands without massive investment.

Looking for an expert team to create your OTT Application?

How to Build On Demand Video Streaming OTT App Platform from Scratch?

Key Steps for Successful OTT App Development
When developing a successful OTT app one has to go through a comprehensive process of meticulous planning and execution. This journey involves defining objectives, designing attractive user interfaces, developing robust coding, rigorous testing, and continuous refinement.
Let’s understand these crucial steps on how to build OTT apps in detail in terms of OTT application development:

1. Conceptualize Your OTT Business Plan

Begin by asking yourself, “What unique value or content can my OTT platform offer?”
Identify your target audience and their preferences. Then outline your content strategy including the types of media you wish to offer like audio, video, or interactive content.

The next step in the business plan conceptualization is to consider monetization models and technical requirements like streaming quality and device compatibility. Lastly, create a budget timeline for development because a well-thought-out business plan will serve as a foundation for a successful OTT app development process.

2. Acquire Rights and Licenses for Engaging Content

If you are looking to start a streaming service like Netflix or similar OTT platform development, acquiring rights and licenses for engaging content is a crucial step. Firstly, decide on the content you wish to offer and then research the necessary copyrights, licenses, and distribution rights.

Engage in negotiations with content creators and distributors to secure these rights and ensure that you comply with legal regulations and agreements. You also need to consider international rights if you want to reach a global audience. For this, consulting a legal expert to navigate complex licensing agreements is the right choice.

3. Designing and Developing Technical Infrastructure

Creating a successful OTT architecture would involve defining your unique value proposition, target audience, and content strategy. Next, collaborate with experienced designers and OTT app developers to develop an engaging user interface that is visually appealing and responsive across various devices.

Create an OTT platform with a strong focus on user experience, smooth streaming, and interactivity. Regularly test to remove bugs or issues and refine the app to align with your vision. This step is crucial for building a competitive and user-friendly OTT app.

Choosing the Right Technology Stack

Frontend Javascript Frameworks like AngularJS, Angular, React.JS
Backend Node.JS, Express, Django, Flask, and Phoenix
Cloud-based Infrastructure Amazon Web Services (AWS), Microsoft Azure, and Google Cloud
Databases MySQL, PostgreSQL, Cassandra, Oracle
Streaming Technology Adaptive Bitrate Streaming (ABS) Technology
Payment Gateway Integration Stripe, Braintree, and PayPal
Analytics and Reporting Google Analytics, Mixpanel, and Adobe Analytics.
Content Delivery Network Akamai, Cloudflare, Amazon CloudFront
Video Encoding and Transcoding FFmpeg, Handbrake, and Media Encoder
Content Management System Drupal, WordPress, and Django

4. Deliver, Launch, and Market the Platform

Once the OTT app is developed and tested, the next critical step is to deliver, launch, and market the app. Choose an appropriate launch strategy while considering factors such as timing, target markets, and promotional activities.

Next, develop a comprehensive marketing plan that includes digital advertising, social media campaigns, and partnerships to build anticipation and awareness.

5. Maintain and Continuously Update

Maintaining and continuously improving your OTT app is pivotal for long-term success. It is mandatory to establish a dedicated team to monitor app performance. So that during any technical glitch, the fault can be addressed and the user can have a seamless OTT experience.
Regularly update content to keep it fresh and relevant to entice users to come to your app again and again. Ask for user feedback and reviews to identify areas for improvement and prioritize updates accordingly. So, look out for consistent maintenance and updates to enhance user satisfaction and demonstrate your commitment to providing a top-notch OTT experience.

What Are The Types of Monetization Strategies of OTT App Platforms?

Monetization Strategies of OTT App
OTT platforms can employ diverse monetization strategies to generate revenue from digital content offerings. These OTT business models address varying user preferences while maintaining profitability and sustainability in this competitive industry.
Here are the types of monetization strategies on how do ott platforms make money:

1. Subscription Video on Demand (SVOD)

SVOD is a popular monetization strategy used by OTT apps where users pay a recurring fee on a monthly or annual basis. This model offers a predictable revenue stream and encourages user retention.

Popular OTT platforms like Netflix, Disney+, HBO, Apple TV+, and others have successfully employed SVOD. It is an effective way to generate steady income while offering viewers with uninterrupted, ad-free entertainment.

2. Ad-Supported Video on Demand (AVOD)

In this model, users can access content for free but have to view advertisements during playback. It offers a broader audience reach as there are no subscription fees, so it becomes an attractive option for advertisers to showcase their products or services.

Platforms like YouTube and Tubi rely on AVOD to generate revenue through ad impressions and clicks. Through this model, advertisers gain exposure to a vast audience and valuable no-cost alternatives for views.

3. Transactional Video on Demand (TVOD)

TVOD model allows users to pay per view or purchase content on a one-time basis. This model is commonly used for renting or buying movies, specific TV show episodes, or premium content.

Platforms like Amazon Prime Video and iTunes utilize TVOD. It allows users to access content without ongoing subscriptions, making it ideal for occasional users. Through TVOD, content owners earn immediate revenue and offer viewers the flexibility to choose and pay for what they want to watch.

4. Multichannel Video Programming Distribution (MVPD)

MVPD is a monetization strategy that resembles traditional cable and satellite television subscriptions. This service offers bundled channels and content to subscribers for a monthly fee. These platforms like, Sling TV and YouTube TV, allow users to access live TV channels and content via the internet.

This model provides a familiar TV experience with the convenience of OTT streaming for viewers who prefer comprehensive channel packages and live programming.

5. Hybrid Model

The hybrid model is a flexible monetization strategy for OTT platforms that combines multiple methods to generate revenue. It often consists of elements of SVOD, AVOD, TVOD, and additional revenue sources like e-commerce and partnerships.

This approach caters to diverse audience preferences by allowing users to choose from subscription-based access, free content with ads, or one-time purchases. The hybrid model maximizes revenue potential by accommodating various monetization options within a single OTT platform.

6. Other Monetization Strategies

  • Freemium Model: It offers both free and premium content, attracting users with basic services while charging for enhanced features or exclusive content.
  • In-App Purchases: It allows users to buy additional features, content, or virtual items within the app for uplifting user experience.
  • Pay-Per-View (PPV) Events: The users can access specific live events or content for a one-time fee, typically for sports or special broadcasts.
  • Partnerships and Sponsorships: OTT platforms collaborate with brands or influencers to promote products or services to generate revenue.
  • Content Licensing: It involves purchasing or leasing rights to third-party content for distribution, which expands the platform’s content library and revenue potential.
  • Original Content Production: This involves creating exclusive shows, movies, or series, attracting subscribers and advertisers while boosting platform identity.

OTT App Development Cost: How Much It Cost to Build Full-Cycle OTT App Like Netflix?

The cost of developing an OTT app can vary significantly based on its complexity and features. Let’s break down the costs for a Minimal Viable Product (MVP App Development) and a fully-featured OTT app:

1. MVP OTT App Cost

  • An MVP app development typically includes core features like user registration, basic content delivery, and payment gateway integration.
  • Development costs can range from $18,000 to $20,000 or more, depending on the platform, design complexity, and location of the development team.
  • Hosting and streaming infrastructure costs should be considered as the amount can vary based on the content and expected viewers.

2. Fully-Featured OTT App Cost

  • A fully-featured OTT app offers advanced features like personalized recommendations, multiple user profiles, social sharing, and live streaming.
  • Development costs for a comprehensive OTT app can range from $75K to $150K, depending on the scale, custom features, and integrations.
  • Licensing fees for third-party content and ongoing maintenance expenses are additional factors to consider.

How Can Excellent Webworld Help You With OTT App Development?

When it comes to developing an OTT app, you will want to partner with a reliable and experienced entertainment app development company that understands your unique OTT app development requirements. Excellent Webworld offers expertise in developing cutting-edge, user-friendly OTT apps crafted according to your unique vision.

Our experienced team can conceptualize, design, and build your app that aligns with the industry trends and user expectations. We have specialized in developing OTT apps according to various monetization models to help you optimize revenue potential. We have proficiency in content licensing, partnerships, and marketing strategies to further your app’s success.

With Excellent Webworld’s support, you can gain a strategic partner to view the complex world of OTT. And, in turn, enhancing your app’s competitiveness and maximizing its impact in the online video streaming marketplace.

Contact us today to know more!


OTT platform development requires creating digital streaming services with audio, video, or multimedia content over the Internet. This doesn’t require a traditional cable or satellite connection. For OTT platform development, you require user interfaces, content management, app development, backend infrastructure, and content delivery to users’ devices.

Through developing an OTT app, you can expand your reach, engage customers through content, create new revenue streams, and adapt to changing consumer preferences in the digital era.

  • Content Licensing: Acquiring security rights of content can be complex and costly.
  • Data Security: Protecting user data and content from breaches can become extremely difficult.
  • Monetization Strategy: Choosing the right model from different models like SVOD, AVOD, or hybrid requires careful consideration.

To start an OTT startup, you need to follow these steps:

  1. Market Research to identify your target audience
  2. Acquire Content Rights for quality conten
  3. Contact the Tech Development Team to help you build an ap
  4. Choose a revenue model for Monetization
  5. Launch and Market to promote OTT services
  6. Continuously Update to improve based on the feedback

The best VOD revenue model depends on your content, audience, and goals. SVOD offers stable recurring revenue, AVOD relies on ads, TVOD monetizes premium content, and the hybrid approach provides combinational revenue. You should understand your business needs and adapt anyone for broader appeal.

Mayur Panchal

Article By

Mayur Panchal

Mayur Panchal is the CTO of Excellent Webworld. With his skills and expertise, He stays updated with industry trends and utilizes his technical expertise to address problems faced by entrepreneurs and startup owners.