How to Start a Streaming Service like Netflix
The COVID-19 pandemic boosted the popularity of video streaming services. Overall, the industry rose by around 10%. Netflix registered a 50% growth in first-time installations in March 2020. The amount of viewership of Twitch increased by 31%. Grandviewresearch, 2020).
The success of Netflix, HBO, and Hulu is extremely inspiring. Looking at the results of their work, many businesses start thinking about how to create streaming services like Netflix. There is a lot of sense in the decision to make such a service today.
In 2019, Netflix’s total annual revenue reached over $20,15 billion. Netflix reported revenue of over $10,05 billion in North America.
The creation of a streaming service doesn’t end with development. The process comprises of 9 main steps and a number of sub-steps:
STEP 1: FIND YOUR NICHE AND CREATE USP
Before you move on to the creation of online streaming apps for video, you first need to identify your niche and unique selling proposition.
While working on this part of your application, it might not be a good idea to copy an already popular solution like Netflix. Big names have a huge user base and operate all over the world. Competing with them is extremely hard to impossible for small startups.
STEP 2: CREATE A COHERENT BUSINESS PLAN
You can’t decide how to start a streaming service without having a strict business plan that will guide all your actions. Thus, going through this stage and all its steps is essential for all startups.
- Find content creators
- Choose the best monetization model
- App location and content translation
STEP 3: LEGAL REGISTRATION & CONTENT LICENSING
Knowing how to start a streaming service from technical is not enough. Another significant part of preparation is making the business legal Aside from legal registration, content licensing is also an inseparable part of video streaming services creation.
In the USA, there are two main distributors of video content:
STEP 5: DECIDE ON THE FUNCTIONALITY FOR YOU LIVE STREAMING APP
Video streaming solutions can have a number of user roles:
- Video consumer — end-user who watches the content on a streaming platform.
- Video creator — this user role will be suitable for such solutions as YouTube or TikTok.
- Content admin — this role applies to the administrations of a streaming solution and should allow to moderate content, upload or delete videos, and perform other administrative roles.
STEP 6: CREATE UX/UI DESIGN
If you are wondering how to start a streaming service that users will love, there is no better way to gain their love than with a user-friendly interface.
When you create a streaming service, don’t try to copy the visual representation of Netflix or any other service. The best decision that you can make for the future of your startup is to create a unique style that will make your app different from the competitive applications.
STEP 7: TECHNOLOGIES TO CREATE A STREAMING SERVICE
If you want to know how to start a streaming service like Netflix, you need to understand which technologies go into the creation of such an application. Even though users don’t see this part of the app, building a streaming service with the right technologies is required for its proper functionality.
STEP 8: MARKETING AND PROMOTION
Knowing how to start a streaming service is not enough. Without a comprehensive marketing strategy, no one will know about your application. That’s why marketing and promotion should become integral parts of your strategy.
A compensative marketing campaign includes the following activities and stages: Paid ads, SMM, Influencer marketing, SEO, Events, Partnerships.
STEP 9: GATHER FEEDBACK & PLAN FOR IMPROVEMENTS
After the first version of your app is released, gather feedback from first users. This feedback will help you plan for further versions of your application.
Surveys, user interviews, and analytics data allows identifying points for improvement and advantages. This data should be used when you make plans for the features that you are going to release in the future.
HOW MUCH DOES IT COST TO START A STREAMING SERVICE?
After you decide how to start a streaming service, it’ll be easier to calculate app development costs.
When you create a streaming service, it takes a lot of time and financial resources. The more features you add, the higher will be the cost. The development process can also involve the creation of different apps for end-users and admins. Thus, the cost will grow even more.
An average video streaming app cost is estimated at ~$65,000 (for a single iOS or Android app) The development process usually takes 5–7 months for a single application.
Now you have an idea about how to start a streaming service.
As you can see, the creation of such an app is a complex process with a number of steps that should be followed. If you decide to create a streaming service, you will be tasked with overseeing the development process, building business relationships with content licensing companies or content creators, marketing and promotion, and planning for future growth.
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