Why Should You Build Your Own Video Streaming App Like Netflix?

By Ruchir C.

Remember those days when we used to discuss with each other about the series or movies we want to watch next? Those days are gone long ago now, thanks to the internet and online entertainment platforms which are commonly called OTT platforms.

These online movies or video streaming services allow you to have your entertainment dose anytime you want from anywhere using your mobile device. The worldwide video streaming industry is expected to grow over $125 billion by 2025. This is one of the strong reasons why businesses are planning to enter this market. There are many marketplaces of this industry but the one which is dominating the worldwide video streaming Software landscape is Netflix. And we don't have to give proof for this statement. Now that we are talking about Netflix let us understand how its journey started.

The story behind video streaming app Development of Netflix and its success.

Netflix is the leading video streaming Software in the market. It commenced as a DVD-by-mail business in 1997. This small setup of 1997 now has more than 118 million paid subscribers in the world. If we co wider the US market, around 50% of the households enjoy Netflix services. Have you ever wondered why Netflix is so popular?

Netflix started its online journey in 1998 with a launch of a web page. It changed its business model from a ‘Pay per rental’ system to a ‘Monthly Subscription’ system. Post that, the core focus of Netflix was to boost and promote its online streaming services, and it worked. The Netflix that we see today was introduced in 2008. Today, the platform produces its original shows and movies along with streaming other popular works of art. 

However, before we go ahead and understand how Netflix has reached here and why businesses should undertake video streaming app Development or video conferencing App Development, let us take a look at the business model of Netflix:

The Netflix business model is not only about the way it monetizes your business. It is also about how it engages with the audience. Netflix is an ecosystem that is designed to scale upwards. This is how business models are supposed to be. As we know, Netflix runs on a subscription-based business system. When we think of Netflix Value Proposition, it covers four crucial factors:


Accessibility plays an important role in developing a video conferencing application and its success. As far as the Netflix video streaming app Builder is concerned, the platform works smoothly on every operating system, devices and platforms. This wide approach helps Netflix to maximize its fan base as the subscribers are allowed to enjoy the Netflix content via web, mobile devices, and other PC.

Original content.

Netflix has made sure its subscribers do not feel any need to go anywhere else for entertainment. Netflix broadcasts ‘Netflix original’ programs and third-party publisher's shows.

No ads.

One more thing that adds extra value to the services and user experience offered by Netflix is ad-free services. Who likes to get interrupted by frequent ads in between a good show or a movie? NO ONE.

Recommendation algorithm.

Netflix runs multiple T.V. shows which are available in the number of thousand. Netflix recommendation algorithm collects relevant content and recommends them to you to offer a more engaging user experience.

How does Netflix make money?

Needless to say, the core way of earning money and raising revenue for the business is through subscriptions. Netflix offers a few different subscription plans as of 2021. There is a separate plan for mobile, for one user. There is another plan in which a single user can enjoy Netflix services on more than one device. There are three more different plans named basic, standard and premium. Video quality chances as per every plan along with the number of users or screens who can enjoy the plan.

As far as the target customer base is concerned, Netflix has three main business segments:

Domestic streaming. Here, the revenue comes from monthly fees, paid by the U.S. Netflix subscribers.

International streaming. Revenue is generated from monthly subscriptions outside the US market. 

Domestic DVD. Revenue generated by the US subscribers who enjoy DVD-by-mail monthly services.

Now that we have understood how Netflix monetization systems work, let us understand how you can create your video streaming Software by using a robust video streaming app Builder.

Undertaking a video streaming app Development like Netflix is not difficult. You can adhere to the following steps:

Step 1. Find your niche

The first and foremost step in undertaking a video streaming app development process is to decide the niche of the content. This means to decide the kind of content that you want to scream for your users. Below, we have mentioned a few ideas to give you a better understanding:

Entertainment. There are many video streaming services providers in the market and all of them are enjoying a positive customer base which shows that there is enough scope for new market players who are ready to offer unique entertainment services to the customers. You can also offer music streaming services if your customer base is such. For this, you can undertake Music Streaming App Development and build a product like Spotify.

Fitness. Fitness is another attractive niche. The pandemic has pushed this sector even higher in the market as people are using online video streaming applications to consume fitness-related video content. Your customers would prefer to enjoy content yoga, dance Zumba, or healthy diet consultations. Here, you have a scope to develop a video conferencing application.

Education. There is a growing trend in the market where people prefer to watch “How to” videos over reading lengthy tutorials and instructions. You have a wide scope to choose from different sub-niches, such as magic tricks, origami or cake making, etc.

Step 2. Determine the content you wish to serve

As you are an on-demand video streaming Software, it is important that you decide the kind of content you want to offer to your subscribers or viewers. Depending upon the type of content you are offering, your customers will be able to engage with you.

Considering the next step.is to decide on the content type, you must ask the following question:

Are you open to using videos of other distributors?

Or, you wish to create exclusive video content?

In case you wish to partner with other video distributors in the market you need to get all the required licenses that will allow you to stream a public performance of those videos. This can be done in two ways:

The first way is to rent movies or shows from the authorized distributor with licenses, and the second one is to get in contact with the authentic copyright holder.

Both these options are valid, and depending upon your business goals, you can choose the option.

Step 3. Decide on the monetization framework

Every business tolerates for a profit. As a video streaming Software, or as someone who has undertaken video streaming app Development, you can go for three ways of monitoring your platform:


This way of monetization is as simple as its name. Here, the user pays for every video he/she watches. This way of earning from your platform is perfect if you are streaming independent, or exclusive or seasonal content like music concerts, conferences, trade shows, or sports matches of cricket, boxing and baseball, etc.

Read the blog- Looking to develop video chat app like Zoom? Here's the ultimate guide for developing video conferencing app


One way of earning money is to run advertisements on your platform and charge the concerned companies for that. This strategy is perfect if you are enjoying a broader customer reach.


If you know that many known streaming platforms, both video streaming software or those who have undertaken and run a Music Streaming App Development use this way of monetization. Netflix too. Subscription users are charged monthly, quarterly or yearly based on the platform policy. You can decide the subscription strategy based on your business objectives. This is a perfect strategy if you are planning to release new content regularly on your platform.

Step 4. Know the video streaming software requirements

If you want your video streaming platform well, you need to balance the following performance factors:

Internet Speed

Internet speed is an important factor as it affects the platform's ability to stream on-demand videos. The user must have at least 2 Mb/s internet speed. But if you wish to stream and offer broadcast HD, 3D or 4K content, you need stronger internet speed.

Cloud hosting and computing architecture

When it comes to storing and maintaining the video content it is recommended to rely on cloud hosting platforms as they offer you the following benefits:

Cloud hosting platforms are scalable and flexible, which means you can use as much space as you want to depend on your need.

Cloud platforms offer quick access to all the video content

They are cheaper than hard drives or physical storage devices.

An on-demand video streaming software demands a complex structure. As the platform starts streaming more and more content and more and more traffic starts incoming to the platform, it demands even more robust architecture to offer smooth service to every user across the globe. Cloud solution offers this.

Apart from the above benefits, cloud computing capabilities can be used in different operations like:

  • Recommendation system
  • A\B testing
  • Streaming service
  • Search engine
  • Caching architecture
  • Network connectivity

You might not be a popular video streaming platform at the moment, but you will grow in the future. In order to achieve this, you need robust and faster network connectivity. You have to incorporate a content delivery network (CDN) into your platform. The CDN will help you in broadcasting the content to the platform subscribers via a server network. CDN makes sure your platform is scalable enough to handle the increasing traffic.


Protecting your content from unwanted or unauthorized access across the devices is crucial. To make sure you offer a safe and secure content experience to your customers, you can take the following measures:

Your network background is offering you 24/7 tracking and content availability in case the server fails.

No user can access the third party video without your approval with the help of a Token security system.

With domain restriction, you can freeze the content to a specific domain only. This means other users cannot access the embedded link available in the source code and use the link on another platform.

Geographical restriction makes sure you are in compliance with the licensing agreements and excludes certain locations.

Watermarking also provides extra security so that you can maintain the right to your security.

Payment gateway

Smooth and secured payment is one of the crucial factors when it comes to a smooth customer experience. The payment gateway has to be reliable and easily integrate with your platform. Here are a few payment platforms you can use:

  • Stripe
  • 2CheckOut
  • PayPal
  • Braintree, etc.

Make sure the payment gateway is reliable, cost-efficient, easy to use, and easy to integrate.

Step 7. Build an on-demand streaming service MVP

This is the last step in the development of video streaming software. During the development of the MVP of the platform, you must be clear about the requirements, both functional and non-functional, fix deadlines, finalize the design of the platform, etc. Basically, be ready with all the details which are going to affect the customer experience and business. The user interface must be paid extra attention to as it is going to affect customer experience and interaction with your platform. Platform UI must be interactive, mobile-friendly, and intuitive. User-friendly UI means your users can easily navigate through the platform, searching different shows, building a wish list and more.

Step 8. Collect feedback

Once you build the MVP and launch it in the market the next important step is to collect feedback from the target customer. The first thing that you need to focus on if they have liked the platform and what are the features that they found interesting. Then you can ask them if they are expecting any additional features or if there are any changes that they would love to have in the platform. This will help you understand how the users are looking at the platform and if they are happy with the services. This feedback can be collected in different ways.

  • Social media
  • Email,
  • Online review platforms, etc.

How a live video streaming app Development can you grow and earn profit?

Real-time streaming helps businesses to stay in connection with their followers in real-time. Businesses can offer them the most latest content rather than sharing the recorded content with ads. It is an opportunity for businesses to take their marketing game a notch up by increasing inbound traffic. Live streaming through online platforms is also cost-efficient hence even small business enterprises can use them. The use of video conferencing Application has increased as it is allowing users to conduct live sessions and meetings, especially since 2020.

Live video streaming helps businesses in the following areas:

Relaxation and Entertainment:

Twitch is the greatest and most well-known gaming live video streaming software. Computer game fans can watch others playing their number one or trending games or stream video content themselves. In web-based dating, live video empowers matches to interact virtually prior to meeting in real life. Chinese dating application Momo experienced sensational development in the wake of adding live streaming in 2015.


Advertising in this industry generally relies upon the visual allure of products. A demo of, say, extravagance apparel in real-time or through live video can be charming. A launch of products in real-time is an extraordinary beginning. Retailers can improve sales numbers by empowering clients to buy while observing live video streaming.

Real estate:

Live streaming can be utilized to show properties to forthcoming purchasers. Clients may get information about the area, neighbours, security, taxes, insurance, and so on, by using an organization's application, without going anyplace.

Online courses:

Live videos not just enhance business. They decrease the distance between the business and the purchaser. That is particularly significant for organizations that don't draw in with the public straightforwardly. Most B2B organizations need a stage to give online directions or Q&A, share knowledge materials and get a prompt reaction from the clients.

Medical services:

Live video can offer robust and credible patient support, training and education of understudies, meetings with partners, interviews, etc.​


Organizations can utilize live video streaming software features to control the conveyance cycle. A webcam deployed in a truck's baggage space would transfer video for the delivery professionals, clients, or different associates. Geolocation and IoT incorporation will increase the value of such an application.

The important features of live video streaming software include:

Video Streaming and Playback Functionalities:

An MVP or the primary adaptation of your portable application might be restricted to web-based streaming and watching live videos. In any case, most famous applications provide video playback. The resulting version empowers the users to watch and possibly save the videos after the streaming is finished.

Individual profiles:

The video streaming service must be profile-specific. Clients ought to have the option to make an individual account, deal with the data, emails, passwords, and payment alternatives, etc. The platform must allow users to find profiles with similar content. Users must also be able to use their social media credentials to log in to the platform. The platform must have a system to authenticate the identity of the users.

Personalized Content:

Using the right filters and search options help users to find the expected content easily. The platform must offer fast location-based search features. Users must be able to see the recommended content or content they have added to the wishlist or the content they have liked.


The users and the steamers must be able to comment. Viewers must have a facility to rate and react to the life and saved videos.

Social Media Sharing:

Allow yours to share their favourite shows and movies streaming on your platform to others via social media sites. Integrate your application with known social media platforms like Facebook, and let viewers share details in a click.

Payment Methods:

If your video streaming software is being used across the globe, then you must be flexible enough to accept payment through different geography-specific payment options, such as credit cards, mobile wallets, debit cards, and instant payment networks, like UPI in India, etc.

Every streaming service provider or video streaming software must keep up with the following requirements:

If you are a video streaming platform, you have to keep up with certain requirements in order to offer the best functionality to the users and let them enjoy a premium entertainment experience on your platform:

Stable storage.

In today’s world if there is any system or technology that is being trusted by most of the businesses and individuals to store their data (every type of data), then that technology is cloud computing. It is one of the most cost-efficient and user-friendly technologies that offers easy access from anywhere at any time using any computing device. It also offers stable storage. Hence, streaming services providers must leverage it. It also ensures a seamless content streaming experience.

Good network connectivity.

Apart from using a robust video streaming app Builder, it is important that you use a reliable Content Delivery Network (CDN) to build stable connectivity and avoid issues like server overloading. Robust CDN offers users a shorter request time. 

High bandwidth.

Adapting to a credible video streaming protocol and robust CDN system will offer you high bandwidth and low lagging. In case you plan to stream HD and 4K videos, higher bandwidth is essential.


A video streaming platform can run with utmost stability only if it is secured and protected from unwanted access from unauthorised users or cyber hackers. You must think about security measures like SSL certificate, token security, geo-restrictions, and domain restriction.

Choose your video streaming protocols.

There are various streaming protocols such as RTMP, WebRTC, etc. and every protocol has its advantages and disadvantages.

Read the blog- How to Make Your Own Music App Like Spotify in 2021

Here are a few more things that you must consider while undertaking a video streaming app Development:

Product determination.

User experience.

Planning of ad strategy, etc. along with the following crucial factors:


Depending on the data analysis and data gathering, you can modify your charges, decide which features are loved by users or used most by users, what can draw more user attention, what needs to be changed, how to boost customer loyalty, etc.


You should go with a platform that is suitable to your business goals, target customer base and budget. However, you should know that users expect to watch high-quality content with comfort and convenience. This means, they want something that is reasonable and they can access it from any device at any time.

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How much does it cost to develop a robust video streaming software?

Whether you want to undertake a Music Streaming App Development or build app similar to Netflix or you simply wish to build credible and user-friendly video streaming software, the cost depends on multiple factors such as features you want to offer, quality of content you wish to stream, your target customer base, platform for which you are developing the application, etc. Plus, you must consider factors like cost of labour, cost of development tools, government regulations & licences and more.

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