How to Create Video Streaming App like Netflix- Key Features & Cost

With the expansion of the media industry and cheap internet, the craze for videos online saw a sudden rise. Not just this, with OTT platforms showcasing some of the most interesting series and movies at the most affordable rates these platforma have even left other sources of video entertainment behind.

It is no secret to anyone that the way they consume video and television has changed radically, producing a radical turnaround in the entertainment industry. Ever since, through the Internet, there has been a change in the model in which this content is produced, sold, distributed, and consumed by users.

In this sense, the increase in Internet transmission services is extremely remarkable; mainly because you do not need a TV service provider, in particular, and this offers greater simplicity to access the movies or series you want to watch.

Today OTT platforms like Amazon and Netflix are driving the viewers of television towards them. Have you ever thought about what makes them so popular? Well the simple response to this question is the variety these platforms offer. If you are looking forward to an easy money making game then you are at the right point.

We share here all the details to enter the market with create an app like Netflix.

What Is a VOD Video Platform and How Does It Work?

Before we get into the details of how to start a streaming service like Netflix, let’s first explore what is VOD and how it works. It is important that you understand how these applications function and how it works. If you are also planning to build netflix like video streaming website then just know how it functions.

Also known as on-demand streaming or on demand television, VOD (Video on Demand) refers to a television system that offers users the possibility to access multimedia content in a personalized way, without necessarily relying on traditional TV services.

Therefore, when using an on-demand video platform, people have the power to request and watch a specific film or specific program at the exact moment they want.

Therefore, it is also possible to view movies, series, or programs in real-time or, if you prefer, you can download it on any device (PC, portable player, digital video recorder, etc.) and then watch it whenever possible.

As for the operation of the VOD video platforms, it is necessary to limit the following:

  • The system includes the basic functions of the video clip (restart the program, stop it, bring it forward or backward, position it in slow motion, etc.) and all at the will of the same user.
  • It offers the full availability of the desired programs, without having to adapt to the fixed programming times as traditional TV channels do.
  • They contain a wide range of content, so people have a large a-la-carte offer and can even make a payment for certain exclusive programs if they wish.
  • These types of platforms work to offer users full availability of an alternative system to regular movie rentals.
  • There are two forms of content distribution on demand: via LAN, where you can make a faster distribution to users. The other way is via WAN which has a longer range, but the response is slower than in LAN mode.
  • VODs use real-time protocols, namely: RTP (Real-time Transport Protocol), RTCP (Real-time Control Protocol) or UDP (User Datagram Protocol). With a complement of RSVP (Resource Reservation Protocol).

Revenue in the Video Streaming Segment

What kind of content can I watch on an on-demand TV streaming platform?

In addition to the series and movies, the content that facilitates an on-demand streaming TV platform is completely varied. Therefore, it’s growing remarkably worldwide, since it manages to meet the needs of millions of users when it comes to entertainment and variety. Next, the main types of content currently provided by VODs:


These platforms have released several series in recent years, attracting the attention of thousands of users around the world.

These consist of an audiovisual work that maintains a unity of plot in itself and thanks to its attractive textures, they manage to capture people who consume content from their computer, mobile phone or tablet. Taking this into account, they cover all genres.

It is worth noting that, today, the series shows the largest number of users watching videos on demand through these platforms (as you can see in the graphics provided at the end of this section).


After the series on VOD platforms, the films are the ones that collect the most views. Being a cinematographic work that, in general, tells a story adapted by a screenwriter and its staging depends only on a director. These can count on the participation of famous actors all over the world and cover all genres.

Read Also: How To Develop an On-Demand Video Streaming Mobile App?

One of the biggest advantages offered by on demand television platforms in terms of films is that on several occasions they promote and preview many of them before their film broadcast. Therefore, users choose to purchase movies from HBO, Netflix, etc.


For those who prefer to enjoy a recording of an aspect of real life and shown in front of cameras and a large audience, it is best to watch a documentary. Which, basically, are classified according to the nature of the materials used in the video, which are those materials and also by the figure of the narrator during the recording.

In this sense, you can see purely real documentaries or, a “docudrama” in which the protagonists of the events narrated participate by acting with their own role. As you can see in the final graphics, documentaries occupy third place in the VOD platforms.

Entertainment Programs

Although true, practically all traditional televisions have broadcast hundreds of entertainment programs around the world and many of them have achieved remarkable success. However, to watch them every day of broadcast, you had to stick to a fixed schedule and, if not, you missed the episode of your favorite show.

However, this has changed with this type of VOD platform, so users can access this content whenever they can and whenever they want. As a result, these programs occupy a transcendental role in the development and implementation of streaming VODs today, thus occupying fourth place when it comes to multiple views (see chart).

Thematic Channels

They refer to channels that offer specialized content on a specific topic or aimed at a specific part of the population. Generally, they are used by users who prefer to request specific content, such as: information, entertainment, children, religion, music, TV competitions, etc. These, in video on demand, have reached fifth place.

Sports lovers of cricket, football, basketball, boxing, Formula 1, etc. also chose to use on demand streaming over traditional television. Since many of the sporting events of an exclusive nature are broadcast only by certain TV channels and various users do not have access to that channel, on several occasions.

Thanks to these platforms, it is possible to have fun with games and competitions in real time. For this, it occupies the sixth place.


Lastly, we position cartoons that have also had considerable power on VOD platforms today. Since then, many parents prefer to select the content that their children see and so, enjoy a variety of cartoons from any device.

The following table shows the acceptance that each type of content had on video platforms on demand during 2019:

Netflix Business Model

When you decide to hire a Netflix app development team it becomes important to demonstrate to them what you are expecting here. It is important that you make it a point to share the monetization techniques’ value and proposition.

The business model for netflix is really simple, it is centered around embracing its target audience. The business model of the application runs around an ecosystem where each element has a significant role to play.

Netflix business idea is subscription based and depends on the plan that the user buys.

Unlike any other application the value proposition for Netflix too stands on four pillars.

Read Also: Smart TV App Development Cost & Features

Value Proposition of Netflix

The four elements of Netflix value proposition are:


The ease of accessibility the application offers makes it really interesting for the people to explore the options in the applications. With various languages, operating systems, platforms, and devices it becomes easier for the end users to find exactly what they would enjoy.

This approach helps Netflix earn a strong loyal fanbase that reflects in a great revenue model.

Original Content

When talking about the content on such applications it is important that they showcase new content too. There are some record breaking originals on these platforms that have changed the course of entertainment around the world. If you are willing to look forward to such solutions without any gaps then make sure that you would be earning a lot of profit in a limited time.

No Ads

The biggest source of income when it comes to YouTube like video channels are the advertisements. If you have a Netflix subscription then you know how interesting and easy it is to continue watching your favorite series uninterrupted.

When it comes to the user experience Netflix has failed other platforms by a margin.

Recommendation Algorithm

Talking about the recommendations not for once has Netflis’s AI failed. Not a single person could complaint about out of context or vague recommendations. The application has used the latest technology and trends with a strong AI backend that drives the recommendations and studies user behavior.

Our experts are capable of developing a similar setup that would track down the records and help you build a strong and interesting solution.

When you think of the business model that netflix follows the zones to make profit are lesser but to make users happy is more. It is the user satisfaction that leads to more subscriptions and better profits.

How to Create an App like Netflix?

Creating an app like Netflix is not easy. There are a plethora of things that need to be borne in mind well in time so as to avoid all difficulties. Therefore, I suggest you take a minute to have a look at the below mentioned points and embark upon a robust app development strategy.


It is important to note that big on-demand video app giants such as Netflix too find it immensely expensive to stream content all over the globe. So, the first thing you need to finalize is the region where your application shall be available. Following that, delve into the cost aspect and understand how much money you will have to pay for acquiring the streaming license in that region. You can only make profits if your app income shields such expenditures. If things do not work out, see if there is a possibility of changing the region? Therefore, always start your development after you have settled all license issues.


The next stage involves answering a couple of important questions such as where will you stream the content from, what database will be used and where all this data will be stored. Purchasing loads of hardware is not easy. Therefore, make use of a cloud to host your server and store all the data. Also, you need to decide upon the technology you wish to use for your app. The choice of technology is largely dependent upon factors such as devices for which you are building an app, streaming speed you wish to achieve, your app’s territory, etc.


The design of your app is very significant. But, most of you must have noticed that video streaming mobile apps generally have a distinct outlook and vary quite a lot in design as compared to other apps. So, when it comes to such apps, it is always wise to hire a professional app designer so as to make sure that your app does not look primitive and outdated.

Read Also: How to Choose the Best Mobile App Development Company?

Monetization Strategy

It is very important to layout a detailed monetization strategy for your app before embarking on the development phase. Even if you are offering your app for free, there are several other options for making money through the approaches like subscriptions, advertisements, etc.

The monetization strategy of netflix is quite simple and transparent. If you build an application like Netflix then do stick to similar solution. As we have already discussed Netflix works on subscription based model, thus the major profit is generated by  the customers subscription itself.

Let’s look at the subscription plans Netflix has to offer:

Basic Plan: The plan starts with a minimal amount of $7.99 per month. This lets you watch high definition videos on the single screen at a time.

Standard Plan: Starts with $10.99 per month where the user can watch high definition videos on two simultaneous wings. Thus, one can enjoy watching videos with their friends together from their own devices.

Premium Plan: The plan costs something around $13.99 and can be accessed through four screens at once that makes it quite easier for the people to connect with you.

Along with these things there are a lot more important points thar are tp be considered when developing an application like Netflix.

Domestic Streaming Plan: The domestic streaming plan talks about the monthly basic plan income that is basically driven by the US audience.

International Streaming Plan: The streaming plan considers the revenue generated by the customers around the world.

Domestic DVD: The domestic DVD plan reflects on US subscribers who pay by DVD on  male.

If you look at the monetization strategy of the application it defines in a way that they earn the best results in no time. Since they have worked in customer satisfaction the revenue makes things easier for them.

Recommendation Engine

Recommendation engine is by far the most crucial factor as it regulates the mode in which your app will determine which content to be presented to the listener. The system recommends the content based on two approaches: collaborative filtering and content-based algorithm. In the first method, the videos are suggested based on the ratings submitted by all users whereas, in the second method, those videos are displayed which are similar to the ones liked by the user.

Some Significant Netflix App Features

The next stage in developing a streaming app like Netflix is determining a set of functions that will be included in the app. The best option is, to begin with, developing an MVP (Minimum Viable Product) as it is easier to build, cuts down on both the time and money as well as helps the investors in realizing the worth of your project.

Furthermore, your app should contain the necessary functions such as the registration feature where you will offer different options to log in via phone number, email id, or social media account. Your app should have a feature where the users can search for their favorite content and add them to their own personalized playlists. Also, there should be a feature that permits the users to like or dislike a selection.

Social networking has become a prominent feature of almost all apps available nowadays. With this feature, the users can share their favorite content with their friends and family on their social media accounts. This also seeks to promote the app without any additional costs. You can also add a feature of in-app purchases in case you want your users to purchase the content via your app.

How much does it cost to create a streaming app like Netflix?

Building an app like Netflix is quite a complex and time-consuming job. It is best to get in touch with a reliable mobile app development company that holds substantial expertise and experience in developing proficient apps. The overall cost involved for developing a native app will range between $15,000 and $30,000.


Let’s find out the cost of an app similar to Netflix. Analyze the user preferences, identify a proper monetization strategy and remember to implement the correct app features. Hit upon the reliable mobile app development company, to figure the best price for your Netflix-based on-demand video streaming app development.


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