Introduction

Internet and technology have made streaming services like Netflix, Disney+, and Prime Video successful. This has evoked a rush for streaming apps to offer content directly to users, skipping traditional channels. OTT has become a game-changer in the digital age, as conventional TV is slowly losing its dominance. 

Why is OTT app development gaining popularity and becoming the talk of the town and becoming more popular nowadays? Discover how Netflix, Disney+, and Amazon Prime stay ahead in the OTT streaming industry.

In this guide, firstly you will learn about the trends and types, secondly, benefits, and features, and thirdly, and most importantly the revenue generation models of OTT platforms. 

Get ready to immerse yourself and create your own OTT app in just a few simple steps.

Understanding The Basis of OTT Apps

To know more about how to build an OTT app like Netflix or Disney+, you first need to understand what makes these platforms tick. So, let’s learn more about it.

What is an OTT?

“Over-the-top,” or “OTT,” technology facilitates devices with internet connectivity to access streaming video.

OTT is a direct-to-consumer video content platform where users can stream excellent material and outstanding streaming. In simple terms, the users can watch their favorite shows, movies, or other video content.

Future Predictions and Projections

According to tvScientific

• Analysts predict that the number of OTT users globally will reach 4.22 billion by 2027.
• They estimate user penetration at 45.7% in 2023 and expect it to rise to 53.0% by 2027.
• They project the ARPU in the segment to amount to USD 90.14 in 2023.
• Also. they expect global revenue for traditional TV to shrink at -0.8% CAGR.

Why Invest in OTT Apps?

The OTT streaming industry has become essential in digital media. According to Statista, the number of users in the OTT Video market will reach 4.9bn users by 2029. 

Moreover, know the major concerns why entrepreneurs should invest in OTT app development. 

The quick progress of the global smart TV market has enabled enjoying OTT content on screens. 

Image Source: Ofcom

The Top Reasons to Invest in OTT App Development

• Upsurge in the Growth of Video Content: Only one more episode has created an upsurge in the growth by producing more video content. Due to the growing demand, creating an OTT application is a successful venture with significant growth potential.
• Extended Revenue Opportunities: However, OTT solution brings several revenue sources, which include in-app purchases, subscriptions, and advertisements, providing various adaptable sources for continuous revenue generation.
• A Business Opportunity: The global streaming market is projected to reach $184.27 billion by 2027, with a CAGR of 20.4%. Building OTT apps will bring new ways for business growth, boost the entertainment market, and fulfill the demand of the modern user.

OTT Market Share by Various Platforms

Competition and diversity in the over-the-top (OTT) industry are causing many platforms to vie for supremacy.

As per Statista, the market share distribution of OTT platforms is highly competitive. 

Best Monetization Models for OTT Streaming Apps

Know how OTT solutions generate revenue solely from content streaming? If that is the case, you ought to read this.

Advertising, licensing fees, archival fees, and subscription fees are how OTT platforms generate revenue.

The list also includes other revenue streams like merchandise, sponsorships, and affiliate marketing.

Moreover, few OTT solution provides premium services. These include ad-free content viewing, personalized or favorite recommendations, and other extra features for a premium service fee.

On-Demand Video Streaming Platforms

• Subscription Video on Demand (SVOD) Platforms: This is the most common profit-making type for OTT apps. SVOD has become the industry standard for distributing video content. Users pay a subscription amount in this model.  Netflix, Amazon Prime Video, and Disney+ are the topmost examples.
• Ad-supported Video on Demand (AVOD) Platforms: A model where the OTT platform gives free access to watch the content and generate revenue through ads.
• Transactional Video on Demand (TVOD) Platforms: This model charges users for a specific piece of content they want to watch. It includes renting or purchasing movies on platforms like iTunes or Google Play.
• Premium Video on Demand (PVOD) Platforms: PVOD uses a pay-per-view business model. To watch and enjoy each movie, payment is mandatory. In this model, users pay a monthly (or occasionally annual) subscription that allows them unlimited access to their content.
• Multi Screen Model: It recognizes that a customer might own multiple devices. Users can easily access the movie library on multiple devices.  This includes iPads, tablets, smartphones, and more, with just one subscription, making it ideal for on-the-go use.
• Hybrid OTT Revenue Models: A Hybrid model is a good choice for your OTT app platform.  It easily satisfies viewer demands by offering various options. Give them free, ad-supported, and premium subscription services. This also ensures a steady revenue stream. As an example, you could charge more for specific content assets using a transaction-based model. In parallel, make money from premium video through subscriptions.

Live Video Streaming Platforms

Users may view their live broadcasts directly on their channels. They can even set up to receive notifications about channel updates by going there.

YouTube and Facebook are the top examples.

OTT applications provide direct subscription-based income streams. On the other hand, allow in-app purchases and advertising earnings for enterprises. 

OTT apps offer a variety of flexible money-making options. It lets you customize them to exactly fit your business model. 

If you are planning to launch your OTT platform with multiple revenue models, then schedule a call with our experts.

Our professionals will help you build your best white-label OTT platform. 

Why do Consumers Choose OTT Platforms?

The dominance of the Over-the-Top (OTT) platform has caused the downfall of traditional television, which used to have fixed schedules and restricted content.

The modern audience expects a personalized, limitless, and on-demand entertainment experience, which OTT platforms expertly provide.

Essential Elements of Leading OTT Services Like Disney+ and Netflix

Features are one of the crucial aspects to make your OTT app development more worthwhile. 

Reach out to the leading OTT app development company to develop your OTT app.

They can assist in building a great app that will help your business grow consistently.

Know the important features you should include:

• Personalized profiles: This feature allows users to log in by simplifying the registration process and enhancing user convenience. It allows users the payment options methods, and recommendations based on what they’ve already seen
• Smart search option: It is among the most crucial elements of over-the-top apps. Using smart search, users may easily look for various types of content depending on their preferences. It prevents users from looking through the entire website to find their desired selections.
• Watchlist: This is also one important function of an OTT app. It allows users to add items to their Wishlist that they want to watch later. It’s important to have a fast search bar for every app, not only over-the-top (OTT) apps with large libraries.
• Payment gateway integrations: Using the multi-payment option, users can choose to pay for their subscription plan at their convenience, whether through net banking, card payments, or payment from e-wallets.
• Screen mirroring or screen casting: This feature enables you to connect your laptop or smartphone to your TV using Wi-fi. Users can include this feature so that the user can watch the content either on TV or laptop.
• Multi-language support: Multi-lingual support can help you expand your business out of your territory as well. Offer multilingual soundtracks and subtitles to reach more users.
• User-Friendly Design: This is an integral part of any OTT application. An interface that is easy to use, readily available, and intuitive is necessary for the user. It improves the quality, and effectiveness of interactions with the outside world and technology.
• OTT App Admin Portal: This feature enables you to upload, delete, and manage media and user profiles in the customer-side app. Additionally, you can manage time frames, marketing activities, and more that we find in the OTT app.

How to Create an OTT App Like Netflix & Disney+?

1. Defining Your OTT App Idea

You need to be clear about what you want to create before you can begin developing your OTT app.  

Think about the problem you want to answer and analyze how your app will identify itself from the competition.

Consider the following

For Target Audience:

• Who is your target audience?
• How does your OTT app bring value to them?
• Check if they are spending money on any similar service or product.
• And if yes, then what unique you can give your audience to make it outstanding?

For Feature Identification

• Know the core features and functionality of your OTT app
• How would you make it unique from the others
• What your user is expecting from an online video viewing experience

First, describe the features and functionality of the app. These will be crucial in figuring out how long it will take and how much it will cost.

You must choose the color and shade schemes you desire. Decide whether you need a skeuomorphic or plain appearance. 

Determine the visuals or animations you want to incorporate into your OTT app platform.

Let’s begin by connecting with the OTT app development company.

2. Consulting An OTT App Development Company

At this point, you require a mobile app development company. This is one of the most important decisions you have to make. 

The company pays attention to your app’s demands. They carry out in-depth research and evaluation and then give a solution that satisfies those demands. 

Additionally, they provide design and development planning tailored to your specific needs.

Working with a social media app development company is important in building an on-demand video streaming app. It supports the development process effectively. 

Choosing a Streaming App Developer involves the following process: 

• Review the companies that made the shortlist.
• Examine the portfolios and previous experiences to make sure they support your goals.
• Examine your technical know-how and abilities.
• Ask for references from recent clients.

3. Tech Stack Required to Build OTT App

Keep up with emerging technologies and apply them to your application. 

Know about the many components of the technology stack. It includes databases, server-side languages, front-end and back-end technologies, frameworks, and programming languages. 

Making the correct technological decisions will guarantee that your app functions well and can grow with your demands.  

This tech stack will help your technology partner in creating the preliminary architecture for your OTT app concept. 

4. OTT App UI/UX Design

The reason Netflix is a user’s first choice because of its UI/UX design. Netflix’s UI/UX designers have created a distinctive method of promoting content. 

Users have options to watch short trailers for TV shows or movies in the homepage display section.

In other words, UI/UX aims to make the system easier for average users to navigate.

Streamline your app to underline its unique selling point and user interface.

5. Create an on-demand MVP model

Once you have completed your plan and written your application, the next step is to implement it.

 It is crucial to prioritize functional requirements such as deadlines, design, availability, and user experience. Pay close attention to the design of the platform you are using.

 Ensure that it operates smoothly, without any issues, and is user-friendly. 

The MVP model guarantees that your streaming app is simple, with basic settings and minimal features for easy access.

6. OTT App Development

To start the development process, it will be helpful to gather the answers to these questions. 

Adding all the features in OTT app development is a major part of the process

The procedures need to go through many stages to ensure that you get the exact product you want. 

This research gives information about 

• features and functions, 
• app design trends, 
• choosing the right technology stack, 

Executing your plan and creating your application is the last step. 

Hire a team of passionate OTT app developers and proceed with your goal of dominating the OTT market.

7. OTT App Testing, Quality Assurance, and Launch

Thoroughly test your app on a real device once it developed. It helps you fix all the bugs and issues. 

To assist you with this stage, consult with QA and testing experts. 

The moment you’ve fixed any issues and made sure your software functions perfectly, it’s prepared for release. 

Think about releasing your software on well-known app marketplaces like the Apple Software Store and Google Play.  

Make sure your software lives up to your expectations by giving it a comprehensive preview before releasing it. 

Release your app after testing successfully on all the devices. Leverage targeted marketing to increase awareness and user growth.

The following steps and tasks result in a successful marketing campaign:

Advertisement at Cost

This will help draw in the first users and spread the word about your video streaming program.

Management of Social Media (SMM)

This is the best method for interacting with potential customers and maintaining a connection with current clients.

Campaigns for Influencer Marketing

By working with bloggers and influencers, you could potentially reach millions of individuals.

Optimizing for Search Engines (SEO)

You can promote your landing pages with the help of SEO tactics so that search engines will list them first. 

8. Post-launch Support & Maintenance

Regular content updates are necessary for over-the-top (OTT) apps to remain popular and hold users’ interest. 

For post-launch requirements like bug fixes and adding new features, your OTT app development company‘s continuous support is essential after deployment. 

It’s critical to keep users updated and supported after launch. This ensures the apps’ continued functionality and applicability.

To keep the app up-to-date, the development team must put forth constant effort as part of the ongoing OTT app maintenance process.

It’s critical to gather user input and engagement to pinpoint areas that need improvement.

How Much Does OTT App Development Cost?

Your brilliant OTT app idea needs exceptional execution. You have thoroughly investigated the app concept and gleaned some important details for the technological execution. But have you budgeted for the same before integrating it into the development process?

Have you ever wondered about the cost of creating an OTT app?

The following variables affect the total cost of developing a mobile application:

• OTT app concept type;
• The intricacy of the app concept;
• The specifications for design and development;
• The application launches on multiple platforms and devices.
• Number of necessary integrations, among many other things.
• Post-app deployment, ongoing support, and maintenance.

Let us run through some figures based on some of these variables.

Here, explore the true cost of developing an OTT app, and calculate the numbers to assist you in creating a budget.

Building an app like Netflix for iOS or Android costs approximately $30,000 to $150,000.

For a single application, the development process usually takes five to seven months.

Apart from the above, many other variables define the cost of OTT app development cost.

Below is the estimation for the basic.

The cost is negotiable.

It depends on several factors like the app’s functionality, design, location of the development team, and more.  

The price range for in-house app development is $40,00–$180,000 plus up to 2500 hours. The price range for outsourcing app development is $20,000 to $150,000. 

Let’s explore the options that help you make a decision that aligns with your company’s goals.

An estimated cost to build in house mobile app

• Developer Salary ($127K +)
• HR Costs ($4,000-$35,000):
• Hardware costs ($4,000-$5,000)
• Software costs ($500-$2,000)
• Testing devices ($2,000-$5,000)
• Internal time and energy (500–2,500 hours):

Cost to outsource app development

• External team costs ($20K-150K+)
• In-house costs ($5000 — $30,000)
• Testing devices ($3000 — $5000)

Want to stay within your budget without sacrificing quality? Then you might want to work with a reputable supplier of cutting-edge app development platforms and solutions.

Which app development platform best suits your needs?

However, you may view the image to learn the hiring cost by region:

Regional Cost of Outsourcing App Development

Please make sure that the price listed here might alter depending on the state of the market.

Get in touch with the top live streaming app development company like Code Brew Labs for the estimation. 

Discuss your needs for developing an OTT app that looks like Netflix or Disney+.

Learn about the development timeframe and estimated cost.

Why Choose Code Brew as an OTT App Development Company?

Seize the opportunity and start your exciting journey towards developing an OTT platform app. 

However, build a live streaming app tailored to your audience’s needs and your business goals. Our services feature end-to-end data encryption with a blockchain-based architecture.

Choose the #1 OTT platform development company to build next-gen OTT solutions with AI capabilities, tailored to your audience’s needs and your business goals. 

Moreover, our services feature end-to-end data encryption with a blockchain-based architecture. You just focus on building your business; let us handle the rest—from traffic spikes to performance, data security, upgrades, and compliance. 

As an OTT platform development company USA, we create outstanding streaming services using cutting-edge tools and technologies.

We cover every step, that makes a difference. To ensure your success, we employ a comprehensive OTT app development procedure. 

Feel free to get in touch with us.

Frequently Asked Questions about OTT Platform Apps Development

1. Which OTT apps are popular nowadays and why?

Netflix is the market leader among over-the-top platforms. Netflix app has over 231 million paying customers worldwide.

The app is available in more than 190 countries in the world. Amazon Prime Video has 200 million subscribers and Disney+ with 138 million subscribers in 2023

2. How long does it take to create an OTT streaming app like Netflix?

It depends on multiple factors like additional features included. Developing an OTT mobile application can take anywhere from three to eight months, or even longer.

3. What is the impact of OTT app development on your business growth?

You may take total control of your OTT solutions and their OTT content by investing in OTT app development.  

• real audience, 
• monetize your content, 
• raise brand recognition, and 
• improve the viewing experience

4. How OTT apps like Netflix earn money?

Netflix and other OTT apps generate revenue through several revenue streams and business strategies:

• charging a subscription fee, 
• distributing and licensing third-party content, 
• forming media partnerships with studios and channels, and more.

5. What is the future of OTT streaming apps?

The video streaming market will reach around $115 billion by 2026 as it grows in popularity

The growing numbers show that OTT apps are the future of video businesses, contributing to the multibillion-dollar industry.

6. What are the benefits of custom OTT software solutions?

Benefits of custom OTT software solutions from a top OTT App development company like Code Brew Labs:

• Interaction
• Easy availability
• Data openness
• Sturdy CMS video player for all devices

7. Why are white-label OTT platforms becoming the top choice?

White-label OTT platform apps are increasingly preferred nowadays for several reasons. 

They offer tailor-made solutions that meet specific branding and functionality needs. 

White-label OTT app platforms provide businesses with a strong chance to stand out from the competition.