How to Develop Video Streaming App Like Netflix? [Development Cost, Business Model & Features]


Written by Hemendra Singh on March 26, 2021 | Updated on: June 22, 2021


How to Develop Video Streaming App Like Netflix? [Development Cost, Business Model & Features]

Gone are those days, when family members used to argue about what to watch next! Now is the era where you can watch anything, anytime, and from any device, thanks to online movie streaming services. As per the predictions, the global video streaming market is expected to be worth over $125 billion by the end of 2025. Hence, in case you want to join the party, this is the correct time!

We all must have heard about Netflix right! It is possibly the oldest and most favorite video streaming app. Today, it’s considered the big daddy of on-demand video services and has outgrown many traditional media houses. The craze for Netflix can be seen with the fact that today around 15% of the world’s total population uses Netflix.

And on top of that, the explosion of smartphones has led users to watch their favorite content anywhere, anytime with complete freedom.

The success of Netflix has caught the attention of several tech entrepreneurs to reap the fruit of video on demand (VOD) apps. Everyone wants to capitalize on this. That’s the reason several other players like Amazon Prime, Disney Hotstar, Sony Live, and Zee5, etc. have entered the market and established their respective brands in a very less time.

We, as an established company in the live streaming application development domain, thought to share the knowledge regarding how you, as an entrepreneur can build an application like NETFLIX or Amazon Prime and become the next big thing in this on-demand video streaming market. So stay tuned with us and read the full article to gather complete knowledge. Lights, camera, sound, and action!

How Did COVID-19 Influence Video Streaming Apps Consumption?

With the Covid-19 crisis, almost every business is impacted but with a few exceptions. Unlike other businesses, the online or digital sector has boomed to a great extent. One of the best examples is the Video-On-Demand Apps. There has been tremendous growth in online video streaming solutions like NETFLIX due to the Covid-19 quarantine.

As per a study, a person on average is streaming 7-8 hours of content daily during the coronavirus outbreak. Experts also claim that today people have access to 4 or more streaming applications while around 40% of the surveyed individuals are logging into 5 or even more of such services.

History of Netflix (Movies and TV Shows Streaming App)

video streaming app like netflix

Netflix was incorporated by two entrepreneurs named Marc Randolph and Reed Hastings in Scotts Valley who led this company to become one of the world’s leading internet entertainment platforms. Initially, NETFLIX started as a movie rental service solely focused on providing a web-based movie rental service.

If you notice, the work NETFLIX is a combination of two words – Net (Internet) and Flicks (Movies). Therefore, combining these words becomes NETFLIX. In the year 2010, the company started its movies and tv shows streaming app & website, and after that, there was no looking back. Blockbuster was its biggest competitor and in 2010 it declared itself bankrupt giving the crown to one and only NETFLIX.

Currently, the platform has a market of more than 150 million subscribers in more than 190 countries. Undoubtedly, NETFLIX has taken over the world in the video-on-demand industry.

The Story Behind Netflix Success

netflix app market
Source: Statista.com

When we talk about Video Streaming Industry, NETFLIX is a leader. Started in 1997 as a DVD-by-mail company, today Netflix has more than 118 million paid subscribers. In the American market alone, this service is used by more than 50% of the population. But the real question is why Netflix is so popular? Let’s try to understand!

Netflix launched a web-page in 1998. Apart from that, Netflix changed to the ‘Monthly Subscription’ model from the ‘pay per rental’ model. In the early 2000s,’ the primary focus of Netflix was on online streaming services which proved to be a big success. Finally, in the year 2008, Netflix introduced the streaming service and the rest is history.

Today we know Netflix for creating its original shows, television classics, and movies. In the year 2019, the platform earned a whopping revenue of more than 17 billion worldwide. Now before deep-diving into the topic, let us understand Netflix more by having a look at some of the main facts and statistics.

Also Read: On-Demand Food Delivery App Development Cost and Features For App like GrubHub, UberEats

Facts and Stats about Netflix Video Streaming Services

facts about netflix

  • Netflix occupies more than 60% of the entire video streaming website market.
  • Having a reach in more than 190 countries, the platform made more than 18 billion last year.
  • Netflix has more than 150 million paid subscribers worldwide including 60 million alone in the US.
  • If we calculate in numbers, one human life is just not sufficient to consume the entire content of Netflix.
  • In just 50 seconds, global users of Netflix collectively watch 694,444 hours of content.
  • Netflix takes a 26.6% share of the Global Video Streaming Traffic market (YouTube is 3rd in Position).

When we talk about video streaming and OTT platforms, Netflix is not the only single player. There are other major players in the market too like Amazon Prime, Hulu, Apple TV+, Disney Hotstar, Crackle, YouTube, Dailymotion, etc. So the completion is quite tough and content is the king!

Netflix Business Model

The business model of Netflix is not just based on monetizing but also on embracing its audience. Apart from that, the business model is able to create such an ecosystem where the organization can scale upwards in the future.

The business model of Netflix is subscription-based. The company focuses on global expansion and the model simultaneously helps the company to scale up its operations steadily and quickly.

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Netflix Value Proposition

There are four essential elements included in Netflix Value Proposition which are explained below:

Accessibility

The video content Netflix provides is available across various platforms, devices, and operating systems. Netflix easily multiplies its fan base using this approach. Subscribers around the world watch their favorite movies and TV shows via tablets, browsers, and other devices.

Unique Content

Netflix telecasts original programs, and third-party publisher’s shows. Apart from that, it also offers some in-house-shows exclusively available on the Netflix platform.

No Advertisements

The ads on Netflix are only shown to the free account users. We all feel irritated when there is an ad popping up in between our favorite shows. Those who have premium subscriptions have the liberty to enjoy their favorite shows without any interruption. This motivates the users to pay for a subscription for an uninterrupted streaming experience.

Recommendation Algorithm

Netflix has thousands of movies, TV shows, and originals available for streaming. The algorithm works in such a way that it gathers relevant content as increases user engagement with the platform.

Netflix Recommendation System

The task of the recommendation algorithm is to analyze user data from multiple sources. The algorithm of Netflix works in such a way that it learns algorithms for ratings, ranking, searching similarity, and more. Netflix also collaborates with groups of various tastes. Therefore, recommendations are affected as each subscriber fits into many groups.

Also Read: How to Develop an On-Demand Handyman App Like Uber?

How Does Live Streaming App Netflix Make Money?

netflix business model

Source: garyfox.co

For Netflix, the primary source of revenue is subscriptions. Mainly there are three subscription monthly plans that the users can opt for – Basic, Standard, and Premium:

  • Basic – This plan will cost you $8.99 per month. Subscribed users can watch TV Shows and movies on TV, Computers, mobile phones, and tablets. This plan does not include high definition viewing and users can watch the content on only one screen at a time.
  • Standard – This plan comes with a cost of $13.99 per month. At this price, users can view HD videos at 1080p resolution. Also Unser this plan the videos can be seen on two devices at the same time.
  • Premium – Premium plan costs $17.99 per month. Under this plan, users can watch 4K + HDR videos on four screens at the same time.

As far as the target audience is concerned, NETFLIX has three main business operation segments namely Domestic streaming, International Streaming, and Domestic DVD:

  • Domestic Streaming – The platform generates revenue from the monthly fees paid by US subscribers.
  • International Streaming – The fees of monthly membership come from subscribers outside the US.
  • Domestic DVD – The platform earns revenue from US subscribers who pay DVD by mail monthly subscription fees.

Key Features for Video Streaming App Development Like Netflix

features of netflix app

Here are some key highlights of Netflix that make it a perfect choice for online video streaming:

  • Seamless Video Streaming
  • Valuable Content
  • Ad-free Movies and TV Shows
  • Video recommendations as per your taste
  • 30 days of a free trial

Hence, with such a mind-blowing video streaming application, you will never miss your favorite TV shows and movies irrespective of whether you are at your home or not. Below are the advantages of utilizing a video streaming application:

  • Free Access: You can access the application anytime and from anywhere. It resembles carrying an entire TV inside your pocket.
  • Millions of shows: One can watch their favorite shows and movies without any interruption. Also, they can choose the kind of content they like to watch.
  • Efficient: An application like Netflix helps in sparing a lot of time to app developers in such a way that there is no strain of missing the significant match or show. The platform can store everything for you.
  • Multiple payment options: There are various installment plans for a video streaming app like Netflix. You can impart the record to various clients like your friends and family members and offer the installment. Therefore, it gets moderate also.
  • Ad-free videos: Unlike in Televisions where you have no choice but to bear with the irritating and never-ending advertisements, the video streaming application like Netflix gives you an advertisement-free video watching experience.

How to Develop Video Streaming App Like Netflix?

The task of video streaming app development like Netflix is not as easy as it sounds. In fact, for developing a highly engaging, interactive, and responsive streaming service application, you have to do the following steps:

Choose Your Niche

This is the first step in which you decide the type of content your app will stream to users. The content can be of three types:

  • Entertainment: Like Netflix and HBO, your app can stream content related to entertainment. There is a huge market in this particular category around the world and you can surely think of becoming the next big thing.
  • Fitness: As far as the Video on Demand services are concerned, fitness is yet another crucial niche. Fitness enthusiasts would be happy to pay you a certain amount for which they can see quality-oriented fitness content anytime.
  • Education: Nowadays, people are keener on learning stuff via watching online tutorials rather than reading guides and manuals. Therefore, there is always a huge market for education-related content.

Decide The Availability of Your Content

It is very important to decide the content type as it forms the backbone of any ‘Video on Demand’ service platform. Answer these questions for better understanding:

  • Would you create your own videos for your platforms?
  • Or would you use videos from other distributors?

You would be needing a license if you are dealing with video distributors. You can do that either of the ways:

  • Renting a movie from an authorized distributor along with a license.
  • Or contacting the copyright holder

Decide the Model of Monetization

Below are three monetization models for a live streaming app development like Netflix:

  • Pay-Per-View: Under this scheme, the user pays for every video he or she watches. It is the most straightforward pricing scheme. This particular model is well suited for a platform that broadcasts sports events, trade shows, conferences, wrestling, boxing, etc.
  • Advertising: The companies will pay you for running their video advertisements on your platform. Although, in order to make this advertisement strategy successful, your platform needs to be famous and well known.
  • Subscription: Netflix and other platforms are using this monetization strategy under which companies charge a subscription amount as a monthly fee to give access to a contnet5 library. This monetization technique can be used especially if you upload fresh content re3gularly on your platform.

Go Through The Requirements of Your Video Streaming App

You need to integrate the following characteristics to make your video streaming app platform worthy:

Speed of the Internet
Internet speed directly impacts the ability of the platform to stream videos on demand. The minimum speed for streaming standard definition videos is more than 2 MB per second. But, for broadcasting movies of higher definition like HD, 3D, or 4K, your speed must be much higher.

Cloud Hosting and Computing Architecture
There are a lot of benefits of using cloud hosting platforms for your app:

  • Cloud hosting platforms are cheaper than hard drives.
  • The cloud platform allows quick access to video content.
  • Such platforms have flexibility so that space can be increased automatically.

Focus on Your Audience

Here are three primary ways to find the audience for your app:

  • Social Media Channels – You can share your videos on popular social media channels like Facebook, Twitter, Instagram, etc. for promoting your services and finding the right target audience.
  • YouTube – For brand promotion, YouTube is a very powerful tool. You can do video marketing through YouTube and promote your product.
  • Newsletters – It involves sending your potential customers a letter with a detailed description of the service you provide. One must ensure that the letter is well written and provide all the necessary details of the platform.

Also Read: How to Build a Doctor Appointment Mobile App for Your Clinic?

Technology Stack for Netflix Clone App Development

Development Tools

1. Database MySQL, Oracle, Cassandra
2. Languages Java, Python, Swift, Kotlin, JavaScript
3. Cloud Hosting Amazon EC2
4. Cloud Storage Amazon S3
5. Frameworks Node.JS
6. JS Libraries React, WinJS
7. BDaaS (Big Data as a Service) Amazon EMR
8. Operating System FreeBSD, Server: Nginx

DevOps Tools

1. Code collaboration & version control GitHub
2. Continuous Integration Jenkins
3. Log management Sumo Logic
4. Server management Apache Mesos

MVP of VOD Service Like Netflix

Netflix is such an application that requires a heavy backend for the processing of streaming data transfer. The Netflix clone app development cost and other similar Video on Demand applications depend entirely on the number of features it will contain. The more features it has got, the more costly it will be.

Video on Demand App Like Netflix Cost Factors

As per research conducted on 10,000 students earlier in the US, around 37% of teenagers viewed Netflix consistently. After Netflix came to YouTube with 26% of viewing and then came digital TV with 25% of viewing. This indicated a descending pattern for links and an upward pattern for YouTube. On-demand application popularity increasing day by. Some examples of on-demand apps:

Music streaming app like Gaana, Spotify, Apple Music, YouTube Music, Amazon Music, Tidal, Deezer, Xbox Music, etc.

Home service app like Urban Company, HouseJoy, UrbanPro, Mr. Right.

These applications fall under the category of database category applications which needs a substantial backend for seamless data streaming making it one of the significant cost central components. One must consider these pointers before hiring mobile app developers:

App Features

The more the features, the more would be the cost. This means that features and functionalities are directly proportionate to the cost. One needs to plan smartly to keep control of the cost and decide the features and functionalities of the application accordingly.

Design of The Application

The application should be simple and smooth. Hence, it is very important to keep the structure as straightforward as you can. A simple structure helps in creating user-friendliness among the clients and encourages them to remain loyal to the application.

Portable Wallets

It is always a great idea to incorporate versatile wallets into your application. This means you are simplifying things for your user. This involves some investment in your application to enable users to make installments but it is worth every penny spent.

Application Platform

This guide can help you: Android or iOS app, which one would you develop? This is one of the most important stages where the platform of the application is decided – iOS or Android. Android Application would be costlier as compared to the application built for iOS as it should be considered for multiple gadgets and screen sizes. One can also consider building a cross-platform application for both major operating systems.

Application Developers

Choosing the correct developer for your dream application is very important as choosing the wrong one would make all the efforts, time and money go in vain. You can contact The NineHertz and kick start your online video streaming mobile app development journey and make a fortune. We are well experienced in delivering such projects at affordable prices.

How Much Does it Cost to Build a Live Streaming App with The NineHertz?

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Video Streaming App Development Cost Like Netflix

netflix app development cost

It is very important to know the price related to all these applications before you hire mobile app developers. The following factors need to be taken into consideration in order to determine the cost of app development.

  • Application Design
  • Application Features
  • Technology Stack
  • Hourly rate of developers
  • Development timeline

The most significant variable here is the hourly rate. Below are the hourly rates of the various popular destination for app development:

REGION PRICE RANGE AVERAGE PRICE
India $10 – $90 $30
Australia $35 – $145 $120
Eastern Europe $20 – $100 $40
North America $50 – $225 $180
South America $30 – $130 $55
United Kingdom $40 – $170 $30

Based on the differences and fluctuations in price range, a video streaming app containing the same set of features and functionalities can cost you from $30,000 to $200,000 depending upon the country where the app development is taking place.

When we talk about regions, India is becoming one of the most popular destinations for app mobile app development. Majorly this is because of two reasons. The first is quality and the second is affordability. India is a land of talented and experienced mobile app developers and you can get your job done at a very reasonable price.

Here we are splitting applications into three categories – Simple, Moderate, and Complex along with two types of hourly rates. Below is the cost estimation to construct an application like Netflix based on the above-mentioned criteria:

Complexity Notes Time/Hours Cost at $50 rate Cost at $100 rate
Simple No back-end, no API Integration, basic UI components, basic features like email, social login, calendar, subscription, etc. 400 20,000 40,000
Moderate API Integration, Custom UI features, payment features, back-end server, headsets, and tablets adaptation 500-800 40,000 80,000
Complex 3rd Party Integrations, Multi-language support, custom animations, complicated back-end, real-time features, professional design. 800-1500 75,000 150,000

hire netflix app developer

Final Thoughts

In the end, it is correct to say that performance matters the most. It is the key to every successful online video-streaming platform and there is no shortcut to it. Hence, if you are planning to launch an app like Netflix, you need to take the utmost care in creating a world-class app that can attract users worldwide. Undoubtedly, Netflix has turned out to be the ultimate game-changer in the video-on-demand industry and has integrated limitless opportunities for the online streaming business. You can too create your video streaming app like Netflix just by contacting an on-demand app development company and we will make sure that you get a world-class app. So what are you waiting for, call us now!


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