Gone are those days when family members quarrel about which movie or show to watch next. Technology is already advanced and there are a lot of online movie streaming services now which allow you to watch anything from any device at any time you want. This post will show you how to start a video streaming app like Netflix.
Popular streaming services are growing sporadically and it is estimated that by 2025, the global video streaming market will be worth over $125 billion. In case you want to join the train by starting a video streaming app like Netflix, and earn your cool cash, then this article is for you.
Do you have a streaming app already and you are frustrated about getting underpaid for your content? Do you want to make more money from your videos? If the answer to the two questions is yes, then you are in the right place because you will get the nitty-gritty of how you can start a video streaming App like Netflix.
If you answered yes to both those questions, then you’ve come to the right place. This article will guide you step by step on how to start a video streaming app like Netflix. Read on as we walk you through everything you need to know about creating a successful video business and also the story behind Netflix’s streaming service success.
Why is the Netflix’s Streaming Service Successful?
When it comes to the video streaming industry, Netflix is leading in several aspects. Although in 1997, Netflix started as a DVD-by-mail company, currently it has over 118 million paid subscribers. Over 50% of families patronize this service in the U.S. alone. Do you know why Netflix is so popular? Well, check out the points below:
- Netflix launched a web page in 1998.
- Netflix changed from a “Pay per rental” to a “Monthly Subscription” template.
- Netflix concentrated on online streaming services in the early 2000s, and it was worthwhile.
- Netflix went a step further to introduce the streaming service we all know today in 2008.
- Currently, Netflix is famous for offering original shows, TV classics, and movies.
- Netflix’s revenue is estimated to be as high as $17.63 billion in 2019.
These and more are the reasons why Netflix is so successful. You can check out the business model of Netflix in the section below. This is how to start a video streaming app like Netflix.
Netflix Business Blueprint
When talking about business models, it doesn’t center on just the way you monetize your business but also on how you can embrace your audience.
Apart from the business model, Netflix was able to create an organizational ecosystem, that made it scale upwards swiftly over the years. For instance, Netflix utilizes a subscription-based business model which integrates with global expansion that allows the company to grow very fast and steadily.
How to Start a Video Streaming App like Netflix
The creation of a similar Business model to that of Netflix is not as difficult as it seems. To start a video streaming app like Netflix, you need to follow the several steps below:
Discover your niche
The first thing to do when starting a streaming app is to find a niche and select the content you want to stream to users. The following will provide you with clues on which profitable niche to dive into:
- Education. These days, most youths and even older generations prefer to watch simple “How to” videos rather than sitting long hours reading tutorials or instruction booklets. You can also select from many sub-niches, such as magic tricks, cake making, or even paper folding (origami) to attract a particular audience.
- Entertainment: If you will like to focus on Entertainment, then you can learn from HBO and Netflix as these two streaming services are profitable. You’d get a large audience to accept a new streaming provider.
- Fitness: Fitness is another expected niche for VOD services. People would love to subscribe to enjoy access to fitness-related videos anytime any day, especially those that want to shed some weight. Asides from that, several video categories such as dance training, healthy diet, or yoga can be added to build up a larger audience.
After comparing these niches stated above, you should be able to select one and stick to it that will make the streaming service business profitable for you. Check out other factors below to implement when you want to start a video streaming app like Netflix.
Know your Target Audience
Once you’ve been able to stick with a premium niche of your choice, then the next thing you need to iron out is who your audience will be and what they are expecting.
To have a better understanding of what your target audience needs and we love to invest their money in, you can answer these questions:
- What are the common themes your target audience shares? (age group, interest, lifestyle, etc.)
- What does your audience expect to get from watching your videos? (depending on the niche whether education, entertainment, fitness, etc.)
- What can you introduce to your niche that your audience wants and no other person is offering?
Once you can answer these questions, it will help you with the million bucks discovery and you will have a better understanding of what content to produce. This special discovery will become your unique selling point. This will be what will stand you out among other content creators in the same niche.
For instance, YBM creates tutorials on several ways people can plan and present their memories. They also group their content via the tutorial’s design.
Determine the content availability
Since you will be running an on-demand streaming service, you need to know what the content will be and how to make the content available.
Will you be using videos from other competitors or you will be creating your video content? In case you choose to collaborate with other video distributors, then you need to get a license for public performance. You can achieve this either by:
- Getting an authorized distributor with licenses and renting a movie.
- Or by contacting the copyright holder.
However, the two options are legit and the choice depends basically on your business goals. In case you chose the first option, you may need to contact one of the two leading authorized distributors of movies and T.V. series in the USA SWANK Motion Pictures and Motion Picture Licensing Corporation (MPLC). If you chose the latter option, then you need to reach out to the studio that is the rightful holder of the particular content.
Select the Monetization Model
You have three methods of video monetization you can choose from for your proposed on-demand video service, they are Advertising, Pay-per-view, and subscription:
Advertising: You can make extra cash by charging other companies who would like to run video advertisements on your platform. You will only earn big if your platform becomes very famous among users.
Pay-Per-View: This is the simplest pricing monetization model in which the user gets to pay for each video he or she watches. You can choose this model if you will like to create a platform to broadcast concerts, conferences, trade shows, or sports events, such as boxing and MMA.
Subscription: This is kind of the most common model and it’s what Netflix uses too. Apart from being common, this monetization model is also used by a third of professional broadcasters. Once you subscribe, you will be charged a monthly fee to get unlimited access to the content library. This model is recommended if you will regularly upload new content on your platform.
Check out other factors below to implement when you want to start a video streaming app like Netflix.
Inquire about the video streaming App Requirements
To get the best out of your video performance, you need to check out the following performance characteristics and balance them up, they include:
Internet speed is a very essential factor that affects the platform’s ability to stream on-demand videos. The minimum internet speed to stream quality definition movies is more than 2Mb/s (megabits per second). However, if you want to broadcast HD, 3D, or 4K, your Internet speed must be higher just like that of Netflix.
Cloud hosting and computing architecture
To keep your video content, cloud hosting platforms are recommended since cloud hosting has the following advantages:
- The Cloud hosting platforms are very flexible and help to increase the space amount automatically.
- These platforms allow fast access to video content.
- Cloud hosting platforms will help you save some cash since they are cheaper than hard drives.
An on-demand video platform that wants to make it big requires complex architecture. As your business grows, the involvement of your architecture will also increase. As time goes on, you will need to think about your platform growing from the very beginning which can help you avoid complex data migrations.
The cloud computing capabilities can also be used for diverse functions, such as:
- A\B testing
- Caching architecture
- Recommendation system
- Search engine
- Streaming service
In case your online streaming platform doesn’t grow fast, just believe it will in the nearest future. To achieve excellent network connectivity, you need to combine a content delivery network with your service. The content delivery network (CDN) streams videos to subscribers through a server network. CDN helps to turn your streaming app into an extensible system to handle outstanding traffic.
You need to protect your content from unauthorized access across various customer devices. To secure your video streaming service, follow the steps below:
- In case of server failure, the Network background offers 24/7 monitoring and content availability.
- No third-party source can access your videos without your approval with the help of the Token security.
- Domain restriction helps to lock content to a particular domain. All thanks to this feature which prevents other users from seeing the embedded link in the source code and inserting it into a different platform or website.
- The geographical restriction does not include some particular locations due to licensing agreements.
- When you watermark your content, this provides an extra level of Livestream security.
- With all these features, you will be able to maintain absolute rights to your content.
You need to provide different payment options to your subscribers to allow them to pay for any subscription plan of their choice conveniently from the comfort of their homes. You can use any of the following common payment solutions:
- Braintree: This payment option works in over 40 countries and receives payments in over 130 currencies.
- Checkout: This supports payments through Discover, MasterCard, Visa, JCB, PayPal, or other credit/debit cards.
- PayPal Payments Pro: This allows you to create and host your checkout pages for total control.
- Stripe: This supports different subscription services, and has premade UI components and an API-first approach to modify the payment option for your platform.
You can choose any of the payment options that work best for you and implement them. Check out other factors below to implement when you want to start a video streaming app like Netflix.
Create an on-demand streaming service MVP
During the development stage, you need to make the functional and non-functional requirements clear, set timelines, and choose the design you want and the like.
For your proposed platform design, be extra careful with your decision since an ideal user experience is always the key to any streaming app’s motive. Ensure your platform has an intuitive user interface that enables users to easily navigate between films and shows, search by genre, actor, and director, and create “lists” if need be.
Last but not least how to start a video streaming App like Netflix is to collate genuine feedback. Once you have been able to successfully launch the MVP, you must gather users’ feedback from your platform.
First, ask them how they view the existing features on the platform. Then, ask them what features they would like to be added to your on-demand video service. By taking this step, you will get to understand the experience of real users and get genuine responses about your service. You can collate user feedback in the following ways:
- Email survey.
- Social media.
Netflix continues to be one of the leading media industries with its subscription-based model since 1997. When starting a video streaming app, always learn from the best and most successful platforms like Netflix. By studying these successful platforms, you can also adapt their business strategy to improve your video service.
Once you have a clear shot of how you want your video streaming App to be, then you can involve mobile app developers to bring your idea into reality. That’s all about how to start a video streaming app like Netflix. Feel free to drop your suggestions and comments in the section below.