Do you know when is the perfect time to start a streaming service like Netflix? Right Now!!
The video streaming business model is a very lucrative multi-billion dollar entertainment application development.
Netflix has become the modern equivalent of renting a blockbuster in the good old times of the 90s. We’ve come a long way with personalized on-demand entertainment consumption. It’s still not late to be the part of the success that video streaming services like Netflix, Disney+, Amazon Prime, Hulu, and Apple TV+ are reaping.
There are also several production houses and TV channels that are launching their own streaming service with all the titles produced and showcased on their TV network. Some of the big names are HBO NOW, Hotstar, Sling TV, etc.
How to Start a Streaming Service like Netflix in This Year ?
A better question is how to create a video streaming app like Netflix. So dig into the process with us…
How to Create an App like Netflix? Here is the 6-step plan:
1. Prepare a viable business strategy to start a Netflix-like app startup.
2. Get the best entertainment app development company.
3. Learn about the requirements and tech stack needed to create streaming services like Netflix.
4. If you lack money to build the complete app; build an MVP with basic features to present to investors.
5. With the gathered funding, expand your app as well as your business reach.
6. Keep researching on the best new design trends and features and keep upgrading your app and business model.
These 6 steps are not as easy as it seems. The whole process from finding a proficient technology partner (app development company) to launching your video streaming app takes a lot of time (around 8-10 months.) But, if you find the right streaming app development company and precise business model, then half your troubles will get resolved easily. So, that’s how you can start a video streaming service like Netflix.
Facts About Netflix & the Global Video Streaming Market
Netflix is not the only big name in video streaming and OTT video content business. Other major players in the video streaming industry are Amazon Prime. YouTube Red, Apple TV+, Hulu, Twitch, Dailymotion, Crackle, etc.
Features of Netflix like Service
What is the right strategy to start a business like Netflix?
You need to understand that blindly following Netflix’s business model may not guarantee 100% success. However, Netflix has built a very firm business model that may seem just fine for short term goals, but when you see the bigger picture, it is one of the most lucrative business ideas in the entertainment industry.
What Netflix initially did in the early days was get rights for the released movies (and shows) to air on their platform. This was a great idea five years back. But today is the era of original content – your business plan has to incorporate the same.
Netflix knew that people wouldn’t pay for shows and movies that are also accessible on their TVs or internet. So, they started making original content that’s only streaming on their OTT platform. This way, they created award-winning shows and movies loved by people that they could only watch on Netflix.
It could be difficult to create and stream original content on a relatively new and smaller streaming platform (that you wish to launch). The solution is to partner up with smaller production houses and video content creators who will continuously provide new content for your video streaming platform.
Source: Visual Capitalist
Subscription Video on Demand Model (SVOD)
Netflix gives a 1 month trial period to any new user for them to try out their platform. This strategy is a brilliant one because no single person has enough time to watch all the shows on the platform in 1 month. But, a month is enough for them to get hooked on such content so they will keep paying for further service.
Multiple Subscription Plans
We already discussed that Netflix offers 3 types of accounts: Basic, Standard, and Premium. But what is the difference between these plans? Netflix did a beautiful thing while making these plans; they didn’t separate content according to what you pay. Instead, they separated accounts according to the number of user logins.
Simply said, they made all their content accessible to every user, and only charge extra for the number of users that can log in from 1 account. So, the basic plan is for a single user, while the standard plan allows 2 people simultaneously viewing. The premium plan is ideal for big families where 4 screens can play simultaneously (on different devices, obviously).
Source: Business Insider
Original Content is Company’s Best Asset
The entertainment industry always needs new content because the audience demands to watch something new and original for the price they pay.
Any smart business person will always advise having an exit strategy for every startup. All the original shows and movies of Netflix is their Exit Strategy. If in any case, the company dissolves then they still own the original content which can be sold to the highest bidder, giving them enough capital to start something new.
It doesn’t only have to be an exit strategy scenario. If the company needs some extra juice in their capital, they can sell one of their originals to other video streaming or hosting platform.
No Advertisement Model
What do people hate the most about TVs? It’s the advertisements that come in between their programs. Netflix takes that out of the picture by providing no advertisement platform. This is one of the most important reason after their original content why people are subscribing to their service.
Which are the Technology Stacks used to Build Netflix?
Good video streaming apps have the following features – go through the infographic.
How Much Does It Cost to Build an App Like Netflix?
Now we come to the most awaited question – i.e., “How much does it cost to build an app like Netflix?” To create a streaming service, various factors play a role. The app development cost depends on the app development timeline and other factors like team structure. You may not believe it yet, but there is more than one answer to this question.
Cost of Complete Netflix-like service
If you wish to develop a complete Netflix-like streaming solution, then the cost will be as follows:
| Development Module | Development Cost |
|---|---|
| iOS App Development | $37,000-$54,000 |
| Android App Development | $38,000-$54,000 |
| Back-end Development | $37,000-$48,000 |
| Front-end Development | $29,000-$38,000 |
| Total Cost | $141,000-$194,000 |
Cost of a Netflix App MVP
It is possible that you may not have enough budget to go through the entire app development alone. That’s when an MVP (Minimum Viable Product) comes into play. An MVP is a very basic version of the app with only the most needed features to function.
You can use this MVP app as a demo for interested investors. When others are just showing predictive charts and future plans, you can show hard proof of your concept with this MVP. This prototype app can create all the difference in the world that makes you worthy of their capital.
Creating an MVP App will cost you far less than the whole solution. Probably just 40% of the total cost.
Cost of a Netflix Clone
There is also a 3rd option. If done correctly, it can be a good approach, but, if done wrong, it would be a pure waste of money and resources. The option is getting a fully customized Netflix clone app. Several app development firms provide this service, but not everyone is good enough.
Here, you purchase a Netflix-like app clone and then change the code according to the design and app features that you want for your video streaming app. Developing a clone app is definitely the most budget-friendly option as it will only cost around $5000-$8000 approximately.
The project cost you see here are general market price range and not our project bid. You can talk to our business executive to get a custom price quote as per your app development requirements.
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Let’s Build Your Netflix-like Streaming Startup
People love Netflix, whether it is for the weekend-long binging or some Netflix & chill. This global OTT video streaming platform has become an integral part of our modern entertainment culture.
If you wish to create a Netflix-like app and profit from this startup vertical, then you need a proficient entertainment app development company like Netflix as your technology partner. We can be that partner for you and build your app platform and website like Netflix. Although, why only Netflix, we can even help you build apps like DC Universe – A combination pack of series and comic apps.
Learn How to launch your own OTT after Digital Transformation in Media Industry
FAQs on How to Start a Business like Netflix
If you are an expert in the matters of starting a new business startup-like Netflix and are here just to clear a couple of doubts; we’ll first go through a quick and brief frequently asked questions round on Netflix.
Although, if you are in for the whole nine yards, then you can skip this section and learn further everything about creating a Netflix like streaming app/website.
FAQs
An online streaming service (in this case a video streaming platform) is an online website and/or app platform where people can watch shows, movies, and events of their choice. Netflix particularly follows an OTT (Over The Top) video streaming option.
Netflix streaming is the best option for people who hate to download and save entire movies and shows to view. What the OTT streaming does is it sends the whole video in small chunks of data, this way only small parts and downloaded at any given time. If you pause, then no more chunks are downloaded.
So, you don’t need to have the entire video to view it at any given time. Also, once you’ve watched the video or episode, the downloaded chunks are deleted automatically, saving your storage space.
The short answer on how to start a streaming service like Netflix is to get an entertainment app development company to build your video streaming website and app portal. Remember to choose a company that has previous experience, more than sufficient knowledge, and the latest resources to build you an app like Netflix.
For a longer and more detailed answer, keep reading the blog.
As answered above, Netflix offers 3 types of accounts: Basic, Standard, and Premium. So these accounts have different levels of features and different pricing models.
The alternative Netflix plan charges are as follows:
A more accurate question would be, “What is the monetization model of Netflix?” or “How does Netflix make money from all its titles?” What Netflix does is, they buy rights to popular movies, series, and other visual entertainment programs; in addition to producing original Netflix video content (available only on their platform).
Now people who want to watch these titles (that’s what they call their content) buy the subscription of Netflix. The users can purchase a subscription for 3 types of accounts: Basic, Standard, and Premium.
Netflix makes $950 million a month. If you multiply this to determine its approximate annual revenue, it makes over $11 billion annually.
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