How to Start a Streaming Service like Netflix as a Successful Founder Does
Entertainment has become a crucial part of everyone’s life. With the rise of technology and the internet, everyone has access to movies, songs, and games online. If we look at the entertainment market, it is estimated to reach $2.6 trillion by 2023.
One of the essential parts of the entertainment industry is represented by video streaming platforms or OTT platforms like Amazon Prime, Netflix, Hulu, etc. The current market of these platforms is also at its peak.
The global video streaming market stood at $42.60 billion in 2019. It is projected to rise at a CAGR of 20.4% from 2020 to 2027. Netflix has recently added around 16 million more subscribers to its platform, with the total reaching to 193 million.
All these stats are a clear sign of the high potential for the success of a video streaming website or service. This begs the question of how to build a video streaming website. In addition to this, it is also necessary to know how tough the competition is in the market.
Other than this, there are many other questions in the process of how to start an online video streaming business. Here in this comprehensive guide, we will address all your important questions like:
· Market Overview of the video streaming industry.
· In-depth insight into how to start a streaming service like Netflix.
· How to find the best Business model to start an online video streaming business.
· The cost involved in building a video streaming website.
How to Build a Video Streaming Website: Market Overview
The market overview is really crucial to consider before learning how to build a video streaming website.
The development of video streaming apps is on the move. Apart from the OTT (over-the-top) media giants like Netflix, Hulu, and Amazon Prime, there are many others in the market.
· OTT platforms like Netflix, XUMO, Starz, Sling, Showtime, MLB.TV, Amazon Prime, and many more have over 200 million users in the U.S.
Not only in the U.S, but the trend of OTT apps and platforms is picking up the pace all around the globe. The trend has attracted many people towards it. People have rapidly shifted from regular cable TV to on-demand subscription-based services.
· Statistically, around 76.7% of U.S consumers rely on streamed and on-demand content for their entertainment.
· The Pay-TV Industry has been incurring huge losses in the last few years. Last year, around 1,740,000 video subscribers were lost by the top pay-TV providers in the U.S.
These statistics clearly portray the accelerating market of video streaming. In addition to this,
· A whopping 60% of millennials and Gen Z consumers stream videos daily.
As most of the population consuming the video content are millennials and Gen Z. The scope of a video streaming website is wide. Hence, the odds of success of your business of how to start an online video streaming platform are high.
How to Start an Online Video Streaming Business
Finally, we arrive at the most important question, how to start a streaming service like Netflix. Now, the answer to this question includes two parts. The first part is:Business Part
There are basically 4 crucial things that you need to take care of while building a video streaming website.· Define Your Niche
The very initial thing you need to do in the process of how to build a video streaming website is to finalize a niche. At present, there are a plethora of niches in video streaming.· Conduct Customer Research
What if you are offered something that you don’t want? You will not accept it, right!! In a similar way, customer research is an essential aspect of learning how to build a video streaming website.
o Customer Pain Points
It is essential to know what are the issues of the customers using video streaming apps. This will help you in building a better product for them.
The first thing about how to start an online video streaming business lies in understanding the pains of the customers.
o How to Define Your USP to Build a Unique Video Streaming Website
Further, on how to start a video streaming service like Netflix, we will talk about USP. To move up the level of competition, it is essential to offer the customers something unique, something they won’t have to give a second thought.
o Test Your Idea w/o Code at Low Cost
Next to determining USP in the business of how to start an online video streaming website is POC.
POC is expanded as proof of concept, and it is a way to know if your product has demand and if it is feasible to implement.
A POC is not the same as MVP; it has all the small technical codeless implementations of the product. Moreover, you can also make a simple user interface with no security concerns.
The purpose is to just test the idea. This essential if you are learning how to start a video streaming service like Netflix because:
· A POC will help you identify any bugs or risks early in the process.
· Proof of concept will help you save a lot of money. It is better to test your idea rather than developing an unfeasible product.
· It will help you know the potential and demand for your idea.
· The POC will enable you to understand the process of project development.
· It will help you harness potential investors for your how to start an online video streaming business.
· Think through monetization
Moving forward in how to build a video streaming website is the monetization. How are you going to earn from the website? This is the essential question to answer to learn how to start a video streaming service like Netflix.
Now, to get the maximum ROI, you need to target multiple monetization models. This will help you generate revenue from multiple sources.· Content availability
Now, another indispensable thing in how to start a business of online video streaming is content availability.
After you have decided the niche of the online streaming website, you need to look for content. Content that you will provide the users.
Services like Netflix and Amazon Prime Video cater to both licensed and self-owned content.
o Licensed content: This is the type of content that you can rent from other authorized distributors with a license.
Licensed content can also be fostered from those who have the copyright of the content.
For both of these scenarios, you need a license for public performance. THIS IS ESSENTIAL!!!
o Self-created content: Self-owned content is also a great option in how to build a website for video streaming.
You can produce your in-house video content for your website. This will also help you in the future as you can license it to other channels.
Development Part for How to Build a Website for Video Streaming
So far was the business part of how to start a video streaming service like Netflix. Now, let dive into the development part.
The design is the thing that impresses your users. Hence, it is essential to focus on design in the process of how to start an online video streaming business.Features to Be Included in an MVP
One of the main things in the development part is the core features of the video streaming service.
Here are some of the indispensable features that you definitely need to include in the MVP (Minimum Viable Product) while learning how to start an online business for video streaming:
· User Registration and profile
· Web Push Notifications
· Content Search
· Reviews and ratings
How to Build a Video Streaming Website: Tech Stack
Your video streaming website is as strong as its tech stack. Hence, it is crucial to pay attention while designing your website.
Below are the technologies needed to learn how to start a streaming service similar to Netflix. Some of the top streaming services use these technologies.Backend technologies
Backend technologies for how to start a business of online video streaming.
· Cloud hosting
· Database cluster management
Here is how to utilize frontend technologies and build a video streaming website.
How Much Does It Cost to Build Your Own Video Streaming Platform?
How to start a video streaming service like Netflix, and how much will it cost? Well, this depends on from where you are getting your website developed and who all are involved in the development.
1. Freelancers: If you are considering freelancers for developing the website. You will definitely get a reasonable price, but the quality of work will not be that good.
2. In-house team: In the process of how to build a video streaming website. If you hire an in-house team, it is one of the best options as it will deliver you premium quality work. However, it will be costly.
3. Development Agency: Hiring a development agency for handling your website development process is the smart option for you.
· You will get quality work.
· Reasonable charges.
· Less time to hit the market.
· Timely updates.
This is the best method to go on how to start an online video streaming business.
Learn more about how to start a streaming service like Netflix.