How to Create a Streaming Service Like Netflix

So, Do you remember those days when family members argue about what to watch next? Here, those days belong to the past. Well, With online movie streaming services, you can watch anytime, anything, from any device. Further, the global video streaming market is estimated to be worth over $125 billion by 2025. Also, if you want to join the party, this is the right time. 

Below, you’ll find Netflix’s success story and tips on how to start a streaming service. 

Let’s begin. 

Netflix Value Proposition

This Netflix value proposition includes four essential elements, such as: 

This recommendation algorithm analyzes user data from different sources. Netflix machine learns recommendations for ranking, ratings, searching similarity, and much more. Netflix works with groups of various tastes. Hence, each subscriber fits into many groups that affect recommendations. 

How does Netflix Make Money?

This essential Netflix revenue source is subscriptions. So, Users can choose from the following three subscription monthly plans: 

Well, As for the target audience, Netflix has three main business segments:

  1. Domestic streaming. This platform revenues come from monthly fees paid by U.S. subscribers.
  2. International streaming. So, Monthly membership fees came from subscribers outside the United States.  
  3. Domestic DVD. Income generated by U.S. subscribers who pay DVD-by-mail monthly subscription fees. 

Here, let us look at how to start a business like Netflix and estimate the apps development cost. 

How to Create Your Streaming Service App

The remarkable development of a Netflix-style business is not as hard as it seems. So, To achieve this, you need to go through several steps as described below. 

Find your Niche

The greatest thing to do is to decide what content your app will stream to users. To provide you a clue on profitable steaming niches, we have gathered several ideas below. 

Decide on the content availability.

Because the content is the basis of your on-demand streaming service, you need to determine what your content will be. 

Suppose you want to cooperate with video distributors. So, You need to get a license for public performance. There are 2 ways to deal with that:

Both opportunities are legit, and the choice depends on your business goals. Suppose you choose the first option, and you might contact one of two leading authorized distributors or movies & T.V. series in the USA: 

As for the second possibility, you need to get in touch with the studio, which is the rightful holder of certain content. 

Choose the monetization model:

For your advanced on-demand video service, you can choose between three methods of video monetization:

Netflix Monetization Model

Read the video streaming app requirements For your video to perform well, you require to balance the following performance characteristics:

Internet Speed

Internet speed affects the platform’s ability to stream on-demand videos. Some minimum internet speed to stream standard definition movies is more than 2 Mb/s (megabits per second). But to broadcast H.D., 3D, or 4K, your Internet speed must be much higher. Now, let us check the Netflix example. 

Cloud hosting and computing architecture

As keeping video content, we recommend using cloud hosting platforms since cloud hosting has the following advantages:

  1. Cloud hosting platforms are flexible & increase the amount of space automatically. 
  2. The before-mentioned platforms allow quick access to video content 
  3. And, Cloud hosting platforms are cheaper than hard drives

It is An on-demand video platform that requires complex architecture. As your business grows, the complexity of your architecture will only increase. Consequently, it would be great if you thought about your platform scaling from the very beginning. In that way, you can avoid complex data migrations.  

Furthermore, you can use cloud computing capabilities for many operations, including: 

Freshly, we developed a cloud dataflow for the Nanopore DNA Sequencing app. We explained the data transfer speed issues by using data processing and subsequent storage of incoming data. To get out more, read CASE STUDY: REAL-TIME DIAGNOSTICS FROM NANOPORE DNA SEQUENCERS.

Network Connectivity

Also, if your online streaming platform doesn’t multiply, consider that it will scale up in the future. To complete this, you need to integrate a content delivery network into your service. This content delivery network (CDN) broadcasts videos to subscribers via a server network. So, CDN turns your streaming app into a scalable system to handle significant traffic.


It would be best if you viewed content protection from unauthorized access across customer devices. To assure that your video streaming service is secure, consider the following:

Develop an on-demand streaming service MVP 

The latest part of our guide on starting an online video streaming business is the development stage. Throughout this stage, you must clarify functional and non-functional requirements, set timelines, think about the design, and so on. 

So, Pay extra attention to your proposed platform design since a seamless user experience is a key to Netflix’s success. This platform needs an intuitive user interface. Hence, users can easily navigate films and shows, create “lists,” search by genre, director, actor, and so on. 

Gather feedback 

Following the MVP launch, you need to gather user feedback from your platform. Initially, it would be best if you found out how they like the existing features. Next, you can ask them what features they would like to add to your on-demand video service. This step will assist you in understanding the experience of real users with your service. Here, You can gather user feedback in several ways:

  1.     Pools. 
  2.     Social media. 
  3.     Email survey.

Final Word

Ago 1997, Netflix has become one of the media industry’s leaders. Among the subscription-based model, the company continues scaling and investing in technological innovations. 

While developing a video streaming app, let the industry leaders, such as Netflix, be your successful example. In that way, you can adapt their business strategy for your video service. Suppose choosing a niche and technology stack for your online streaming app. Additionally, take into account specific industry-specific requirements, such as complex cloud architecture. So, Once you have a clear picture of your project, you can hire mobile app developers to bring your idea into reality.  

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