How To Start A Streaming Service, Like Netflix?

Nowadays people can easily enjoy TV shows, movies, or series to make boring evenings fun. Modern TVs have the internet, so there’s no need to spend hours channel surfing. The internet ensures you always find something interesting. But how do you pick the right service to watch HD movies without annoying ads?

Netflix is hugely popular globally today. What makes it so loved? It gives access to tons of shows, movies, and different service packages, catering to all tastes. Maybe someone will make something like Netflix with new features to compete. Is that possible? You’ll know if you try. Online streaming services, like Netflix, can be very popular. We’ll talk about how much it costs to make a streaming service and app like Netflix and what steps to take.

In 2007, Netflix, a relatively obscure DVD-by-mail service, seized the opportunity presented by emerging streaming technology and quickly became a household name. Currently, there are 692 million Netflix viewers globally, marking a 6% increase, or an additional 37 million users, from 2022. Predictions indicate that this number will further rise to 725 million viewers in 2024 and a staggering 781.70 million in 2026.

Taking a broader perspective, as of April 2023, there were approximately 3.5 billion video users worldwide, with a significant portion residing in the United Kingdom, Canada, and the United States.

While viewers around the world indulge in top-notch shows on platforms like Netflix, entrepreneurs are left pondering: how can they launch a video streaming company akin to Netflix? What essential features should be integrated, and what strategies can be employed for monetization? All these questions will be addressed comprehensively in this article.

What Is A Streaming Service?

In simple terms, a streaming service is a digital platform for entertainment that offers on-demand video content, including TV shows, movies, and more.

Video streaming technology was introduced to address the limitations of earlier broadcasting methods. In the past, cable and satellite television provided limited options, and viewers couldn’t choose what to watch. Later, downloading became popular, but it required users to wait for hours to download video files onto their computers.

Then came video streaming, which allowed users to watch shows directly in their web browsers without the need to save or copy files. Unlike downloads, streaming works by loading video files in small chunks without storing them on the hard drive. If downloads are like a lake, streaming is comparable to a flowing river or stream, swiftly delivering content to web browsers.

On-Demand Streaming Vs Live-Streaming

Before delving into the technical aspects of developing a video streaming platform, it’s crucial to understand the distinction between on-demand streaming services and live streaming platforms.

On-demand platforms offer a vast library of content that users can access at their convenience through subscriptions. Examples of these services include Netflix, iTunes, Hulu, YouTube, Vudu, Amazon Instant, Love Film, and Baidu.

Consider Apple, which, on October 19, 2020, introduced Apple Music TV — a live-streaming platform featuring popular music videos, musical releases, announcements, related TV shows, and guest appearances.

In the realm of music streaming, major players like YouTube and Vevo have long dominated the market. Despite this, Apple ventured into this niche, aiming to create a unique musical environment.

On the other hand, live-streaming involves real-time broadcasting of events such as concerts, sports, and gaming. Popular live-streaming providers include YouTube Live, Twitch, and Snapchat.

How To Start A Steaming Service Like Netflix: 6 Main Steps

Now that we’ve covered all the necessary definitions, let’s move on to the core steps you need to follow in order to start a streaming platform.

Step 1: Identify Your Niche

When embarking on the journey to create your own streaming platform akin to Netflix, the initial step is defining your niche. While entertainment programs, top TV shows, stand-up concerts, and documentaries are common choices, consider the prospect of introducing something innovative.

Rather than trying to cater to a broad audience, focus on a specific niche that sets your platform apart. Here are three trending categories to consider:

Fitness: With the prevalence of lockdowns, streaming fitness-related content could make your platform immensely popular.

Education: The global e-learning market is booming, expected to exceed 243 billion U.S. dollars by 2022. Creating educational and entertaining series could be a lucrative venture in this digital learning era.

Documentaries: Although platforms like Netflix have acclaimed documentaries, there’s room for growth. Developing a platform dedicated to showcasing the best documentary pieces could prove to be a promising idea, especially as they gain popularity beyond traditional sitcoms like “Friends” or “How I Met Your Mother.”

Step 2: Define Your Target Audience

In today’s highly competitive streaming landscape, new players emerge frequently, but many fade into obscurity just as quickly.

Consider Quibi, a once-promising short-form streaming platform that succumbed to the fierce competition during the pandemic-induced streaming wars. Quibi’s demise serves as a reminder that attempting to cater to the entire global audience isn’t always the best strategy for success.

To thrive in this environment, it’s essential to narrow your focus and pinpoint a specific audience. Defining your target demographic right from the beginning is crucial. Invest your efforts in understanding your audience deeply. Conduct thorough market research, identify your customers’ pain points, and address the gaps in their streaming needs. By doing so, you can tailor your platform to genuinely resonate with your audience, increasing your chances of long-term success.

Step 3: Find Your Content

In the realm of streaming video platforms, content reigns supreme. Aligning your content with your customers’ interests is paramount. There are two key avenues to explore: licensed content and original creations.

Licensed Content: One approach is to acquire shows and TV series from authorized distributors or copyright owners through licensing agreements. Netflix, for instance, invested around $13 billion in content licensing and production in 2018. This investment proved lucrative, with Netflix generating over $16 billion in revenue that year.

Original Content: Creating exclusive original content is another powerful strategy to boost subscription growth. Netflix, a trailblazer in this domain, offers a staggering 447 original shows. Producing unique content not only sets your platform apart but also cultivates a dedicated subscriber base, driving the platform’s success.

Step 4: Choose Your Monetization Strategy

Ensuring your platform generates revenue requires selecting the right monetization model. Here are some options to consider:

Subscription Model: One approach is to offer access to your content through subscription plans. Users would pay monthly or annual fees for on-demand access to your video content. This model provides stable revenue streams.

Pros:

Stable revenue: Predictable income from subscribers.

Strong brand loyalty: Subscribers are invested in your platform, fostering brand loyalty.

Cons:

Personal data protection issues: Handling users’ credit card information requires stringent security measures.

Restricted backlinks: Content behind a paywall limits external references to your platform’s content.

Pay-Per-View Model:

In this model, users are charged specifically for the content they choose to watch.

Pros:

Significant Profits: Provides substantial revenue, although not consistently stable.

High Traffic: Attracts large numbers of viewers.

Cons:

Lack of Long-term Commitment: Users don’t commit to your brand in the long run.

Marketing Investment Required: Marketing efforts are essential to retain users, as they might seek free streaming alternatives. Proving your platform’s value is crucial to maintaining user engagement.

Advertising Model:

Under this model, ads are displayed during the streaming of shows and can be accessed at any time.

Pros:

Free Content for Users: Users can access content without direct charges.

High User Traffic: Draws in substantial user traffic.

Sustainable Revenues: Generates long-term, consistent income.

Cons:

Dependency on Partners’ Businesses: Revenue is contingent on the stability of partner businesses advertising on your platform.

Choosing the right model depends on your target audience and the value proposition of your streaming service. Each option comes with its set of advantages and challenges, requiring careful consideration to align with your business goals.

Step 5: Assess Platform Requirements

To create your ideal streaming platform, you must meet several essential requirements. Here’s a comprehensive list to consider when launching your streaming service:

1. Cloud Hosting and Computing Architecture:

Managing vast content necessitates secure storage. Utilize cloud hosting for the following advantages:

Flexibility: Storage space expands automatically with your growing content.

Cost-Efficiency: Cloud storage is more economical than traditional hard drives.

2. Network Connectivity:

Prepare for future scalability by integrating a Content Delivery Network (CDN). This network efficiently distributes videos to subscribers through a server network, ensuring seamless content delivery.

3. Security:

Security is paramount when dealing with licensed content and user data. Implement the following measures:

Domain Restrictions: Conceal links embedded in the source code to prevent unauthorized use on other platforms.

Geographical Restrictions: Safeguard licensed content by setting geographical limitations on access.

Content Availability: Ensure network infrastructure guarantees content availability, even in the event of server failures.

4. Payment Gateway:

Offer subscribers diverse payment options using popular payment gateways, such as

• Stripe
• 2CheckOut
• PayPal Payments Pro

By addressing these aspects meticulously, you can establish a robust and secure streaming platform for your users.

Step 6: Develop an MVP Before Securing Significant Funding

No matter how thorough your user research and content preparation are, you won’t truly understand your platform’s potential until real users interact with it. That’s where the Minimum Viable Product (MVP) stage comes in — it allows you to test your product’s usability and gather valuable user feedback. Here are the essential and additional features to consider for your MVP:

Essential Features:

Sign-up/Sign-in: User authentication is fundamental for user engagement.

Basic User Profile: Users should have the ability to create and manage their profiles.

Catalog with Categorized Shows: Organized content makes navigation easier.

Basic Search: Users must be able to search for specific shows or genres.

Payments and Subscriptions: Enable users to make payments and manage subscriptions.

Show Details Page with Episodes: Detailed information about shows and available episodes.

Video Player: Seamless streaming experience is crucial for user satisfaction.

Ratings: Allow users to rate and provide feedback on shows.

Settings (Language, Subtitles): Users should customize language and subtitle preferences.

Push Notifications: Keep users engaged with timely notifications.

Admin Panel for Content Management: Efficiently manage the content available on the platform.

Additional Features:

Comments: Enable users to interact with others through comments.

Autosuggestions: Offer intelligent search suggestions for user convenience.

Localization: Provide content tailored to different regions and languages.

Advanced Search Functionality: Implement a sophisticated search system for precise content discovery.

By incorporating these features, you can create a functional MVP that allows you to assess your platform’s viability and refine it based on user feedback before seeking substantial funding.

Conclusion

In the realm of video streaming service development, the journey is intricate, requiring dedication and innovative thinking. At Webnexs, we’re fully equipped to assist you in bringing your streaming service to life. Whether you have a mere concept or a fully-formed idea for your future platform, we’re here to help transform it into a comprehensive and functional product.