How To Build A Streaming Service Like Netflix, Hulu, Amazon Prime
Netflix has taken the internet and online streaming to an extraordinary level. People have now turned to online sources to keep themselves connected as well as entertained. There is a surge in applications that provide online video streaming and video conferencing. With the growing demand for applications like Netflix, Disney+, and others, now would be the appropriate time to create an app like netflix. Also in this blog we will cover all steps of how to build a streaming service like netflix like app.
Table of content
- Some Facts About Video Streaming Services
- Netflix Business Model
- Working Of Netflix Like Apps
Some Facts About Video Streaming Services
Video streaming services and applications like Netflix, Disney+, HULU and others allow its users to access numerous movies, TV shows, documentaries catering to various genres all in one place. Especially during the pandemic, user base of these applications has rocketed because of the constant demand for content and entertainment. Mainly speaking about Netflix, it drew people worldwide and got 16 million new sign-ups during the lockdown. Other video streaming services, YouTube-like apps have also seen a surge in its usage during the lockdown. People took to these applications to learn more and keep themselves busy.
Fig: Some facts about video streaming services
BUSINESS MODEL Of Netflix
We can help to create video streaming apps, their business model is content-oriented. It offers different plans for the distinct needs and requirements of the viewers. With screen plans ranging from one to four users, Netflix has various content types for all ages. Multi-device availability helps the audiences being hooked onto their favorite content from anywhere, any time. While Netflix’s primary business model is subscription based service, Netflix also earns from its own produced content and media rights.
Fig: Netflix business model
SWOT Of Netflix
Key Factors
- Affordable
- Original content
- Excellent user interface
- Support all platforms and devices
Netflix’s Strengths
- Exponential growth
- Nearly 167 million subscribers
- Premium subscription plans at only $15.99 per month
- Netflix introduced an offline download feature for customers that allows watching later
- Low – price mobile streaming option
- Expand global customer base
- Exploit ad-based model
Netflix’s Weaknesses
- Lack of green initiatives
- Shortage of customer support
- Growing operational costs
Value Propositions
- Show movies with high definition
- Unlimited access of TV shows
- Offer free 30 days trial for new members
- Netflix’s originals
- Allow membership cancelation any time
- Avoid commercials advertisements
Business Model of Hulu
Hulu’s subscription service was launched in beta in 2010 under the branding Hulu Plus. The service remained advertising-supported, but it offers an expanded content library including full seasons, day-after access to current season content and more episodes of shows available. Hulu also launched Hulu Plus apps on other types of devices, including mobile, digital media players, and video game consoles. By the end of 2011, Hulu Plus had around 1.5 million subscribers.
SWOT Of Hulu
Key Factors
- Affordable
- Original content
- Excellent user interface
- Support all platforms and devices
Hulu’s Strengths
- High margins
- Diverse product portfolio
- Robust domestic market
- Inhouse ad agency
- Show movies with high definition
- Unlimited access to TV shows
- Allow membership cancelation any time
- Convenient and flexible
Hulu’s Weaknesses
- Lack of workforce diversity
- Implementation of technology in processes
- Customer dissatisfaction
Hulu’s Opportunities
- Developments in AI
- E-Commerce and social media-oriented business models
- Increase in consumer disposable income
Business Model Of Amazon Prime
Amazon is known for its disruption of well-established industries through technological innovation and mass scale. It is the world’s largest online marketplace, AI assistant provider, live-streaming platform and cloud computing platform as measured by revenue and market capitalization. Amazon is the largest Internet company by revenue in the world. It is the second largest private employer in the United States[25] and one of the world’s most valuable companies. As of 2020, Amazon has the highest global brand valuation.
SWOT Of Amazon Prime
Key Factors
- Affordable
- Original content
- Excellent user interface
- Support all platforms and devices
Amazon’s Strengths
- Free with prime membership
- Prime video has used IMDB’s database
- Sports streaming facility
- Show movies with high definition
- Unlimited access to TV shows
- Allow membership cancelation any time
- Convenient and flexible
Amazon’s Weaknesses
- Platform UI Issues
- Original Content Promotion
Amazon’s Opportunities
- Developments in AI
- E-Commerce and social media oriented business models
- Increase in consumer disposable income
Before We Proceed Further, A Reminder To Check Out Our Guide To Build A Video Conferencing App Like Zoom
Important Things To Consider When Creating A Video Streaming App
To create your own video streaming service requires you to consider a few points:
Fig: Important things to consider when creating a video streaming app
- Discover And Realize Your Niche
With the availability of various types of content ranging from entertainment to education to fitness, it becomes essential to create a differentiator with a specific niche. You can build a platform for documentaries or indie videos.
- Monetizing The App
Innovation and growth can be achieved by disrupting typical monetization models. Plans should always be audience-oriented. As the incumbents have already taken the market space, you can try monetizing with free subscriptions with advertisements or product placement.
Along with this, you also need to look into the multi-currency requirements too if you want to build your own streaming platform to run worldwide.
- Improve Experience
You should optimize the app’s performance for border cases like low internet speed or for people with limited access.
- Netflix Is Not Just Video streaming
Netflix’s success is not just streaming videos but the user engineering and recommendations that make the user hooked to the app. When planning to netflix like app development, and focus on data analytics and user personalization aspects.
- Managing Different Roles In The App
User view is just one user role in the Netflix app. One needs to plan for different users and their access, such as admin, video owner, partners, moderators, etc.
Must-have Features For Video Streaming Apps
How to make Netflix clone features? Video Streaming apps are meant for engagement. No surprises that the world’s top apps have a video component or are complete video apps. Here are some of the common features that we add during the streaming application development.
Technology Stacks Used By Streaming Services
There are various strategies you can employ to build your own streaming platform. These are some of the strategies used by the most successful streaming service, Netflix:
1. CDN (Content Distribution Network)
The idea behind a content distribution network is to put content as close as possible to the users. When the user requests a video, the app will find the nearest server with the video. The app then streams the video from there to the device. The most significant benefits of CDN are speed and reliability. By moving the video source as close as possible to the people watching it, the viewing experience will be much faster and reliable.
Along with the optimization of page content and libraries, the use of CDN also ensures that the application has a faster load time. It loads content from the nearest location of the user. The use of AWS Cloudfront can make a significant difference in terms of loading speed along with supporting caching strategy.
2. Third-Party CDNs
Some streaming services even start their own CDNs, but this can only be done if their video catalog is small enough. If the videos are lesser, one location can store all content. As companies grow, building their CDN makes even less sense. Third-party CDNs allow them to have a global reach instantly using existing services. By outsourcing their distribution networks, services get more time to work on higher priority projects. They can utilize this time to create algorithms to adapt to changing network conditions.
3. Open Connect
In 2012, Netflix launched its dedicated CDN solution to maximize network efficiency. Its own purpose-built CDN has proven to be very advantageous for Netflix. Open Connect is less expensive compared to other third-party distribution networks. It allowed them to control the entire video path. They now have control over transcoding, CDN, and clients. It has also made the app more scalable. Higher scalability is in line with Netflix’s goal of offering its service the world over. Their CDN allows them to know who their users are. They even have their own computer system for video storage called OCA (Open Connect Appliances). This helps Netflix make various optimization choices other services cannot make. Their high-performance CDN has allowed them to deliver a superior video viewing experience.
Fig: Tech stacks for video streaming
Total Cost Of Netflix like App Development
The total cost of development of a Netflix like app ranges between $150000 to $250000. This cost includes the iOS application development, the Android application, back-end, and front-end development. A lot of work goes into the optimization of streams and building scalable architecture. DevOps practice is required to make optimized use of storage and retrieval services.
Architecture Of Video Streaming App
How to build a streaming service like Netflix, an on-demand app, runs on a microservices architecture. To simply put this, each application is, the microservice’s code, and its resources, are on its own. There is no basis of sharing that one can expect or observe. If multiple applications wish to interact, that will happen only via APIs.
Learn All About Building Scalable Architecture To Support Millions Of Users On A Netflix Like App
On average, Netflix uses 700+ microservices that control all the application’s services. The advantage of this is that Netflix’s engineers can make any required changes without changing or altering the rest of the application, which ensures that the entire mechanism does not go down.
Fig: AWS gateway service
Want To Develop Your Own Video Streaming Platform?
As a leading live video streaming app development company, we spend a considerable amount of time learning new practices and optimization methods. Using a Design Sprint led development methodology, we carefully create an application interface, designs, and user experience. We also develop and test your app in phases so that by the time your app goes live, it is stable and bug-free. This approach is what differentiates us from plenty of other mobile app development companies out there.
Learn more about our video streaming services here
Have build apps with million+ users streaming videos
A full-stack team available inhouse to take care of all aspects
Ready models that result in time and cost-saving
Our solutions are independent of the framework so you can integrate with other tools
Have experience with different 3rd parties and APIs like Webrtc, OpenTok, AWS
Complementary dashboard to monitor logs, performance and security
Understanding of GDPR, PCI etc compliances
One-click deployment process with automated code review
Hope our article helps you to understand all the aspects of how to build a streaming service like Netflix. Feel free to connect with us.
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