According to GrandViewResearch, the global video streaming market was valued at $50.11 billion last year. The COVID 19 pandemic has been a key growth contributor to the viewership and engagement of video streaming services. Among all video streaming services, Netflix is pioneering the streaming space with 208 million paid members in over 190 countries. Netflix is one of the world’s popular streaming platforms to watch movies, series, documentaries in different categories and languages. The success of Netflix is an inspiration for all who are looking for how to start a streaming service like Netflix.
If you want to enter into the video streaming business, but are confused about how to start, this blog will take you through the entire process right from the fundamentals.
The business model of Netflix
What started out as an online DVD rental business has evolved as the world’s leading entertainment platform. How did they manage to build an empire worth more than $700 billion today? What worked out for Netflix is its business model. It has one of the most successful revenue models in the world- The subscription business model. However, the business model is not just about how they monetize their business, it is also about how they embrace their audience. The business model of Netflix is content-oriented with different content types for all ages. Netflix makes money from media rights and its own originally produced content.
How to start a streaming service like Netflix?
To build a video streaming service like Netflix, you must consider some of the aspects like niche, content, monetization model, etc. Having a detailed business plan based on your target audience and the unique goals of your company.
Discovering your niche
With the availability of different types of content, it is important to carve out a specific niche for your video streaming service. While the streaming giant Netflix focuses on entertainment and hosts movies and series from all niches, you can choose your own niche that suits your target audience. Some of the niches you can choose include entertainment, education, fitness, sports, etc. Religious streaming service also makes a great choice to connect believers across the globe. You can conduct in-depth market research before creating your streaming services to find a niche that lacks popular services and come up with a unique niche.
Plan the content
As video streaming services thrive upon great content, it is important to decide on your content.
Ask yourself the following questions to select the video content for your streaming platform.
- Are you planning to acquire videos from authorized content distributors?
- Or to produce your own content?
If you are planning to use videos from distributors, you must acquire a content license either by getting movies on a rental basis from an authorized distributor or copyright holder.
Even if you are getting content from an authorized distributor, creating and releasing originals is the best bet to remain competitive in the industry. The approach to releasing exclusive shows is one of the main reasons for the popularity of Netflix.
Choose the revenue model
Netflix follows a subscription-style revenue model where it allows users to access the service by paying a monthly subscription. When monetizing your streaming service, make sure the plans are always audience-oriented.
Here are some of the other monetization models you can follow.
●The freemium model
You can give out some content for free for your users to enjoy while making exclusive content paid.
You can run ads on your streaming platform and charge businesses for the same. However, this revenue strategy will be effective only if your streaming service is popular among your target audience.
Pay per view is one of the basic revenue strategies where users have to pay for individual content they would like to watch.
It is nothing but the implementation of a combination of one or two revenue models discussed above. For example, you can combine both the advertisement business model and subscription model to monetize your service.
Improve user experience
When you start a video streaming service like Netflix, your top priority must be a great user experience. You must optimize the performances of your video streaming service for scenarios like weak internet speed or for users with limited internet access.
It is also important to keep updating your video streaming platform to cope with the interest and preferences of your audience. Do focus on user personalization aspects and data analytics as well when choosing a Netflix clone script to build your streaming platform.
Important features of a video streaming platform
All streaming platforms are enriched with features and functionalities that help viewers to enjoy a great viewing experience. Netflix focuses on constantly updating its features to remain competitive in the market. Now let’s take a look into the important features a streaming platform must-have.
UI and UX
User navigation and user experience are two important aspects of any video streaming platform. When creating a video streaming platform like Netflix, take care of the platform’s navigation by placing elements where your audience expects to see them. Develop a user-friendly content search and convenient menu structure to deliver a great viewing experience to your end-users.
Account creation and user login
One of the most important features of a video streaming platform is user registration and login to allow users to sign via email or social media profiles.
When creating a streaming application, allow users to create personal profiles on your platform. The user profile allows users to save their favorite TV series and movies, add multiple users to the account and browse watch history. Netflix allows users to add 5 profiles to one account which allows different people in a family to access the platform with a single account.
Content is the core element of any streaming platform. To make the whole process of searching for TV shows and movies simple, integrate a broad range of genres in a structured manner.
When building a video streaming app like Netflix, you need to incorporate a secure payment gateway. Allow users to carry out transactions using their debit card, credit card, wallets, etc that are commonly available.
Notifications are another important feature that will allow the platform to inform users of the release of new shows, movies, recommendations, etc. This helps to improve customer engagement to a greater extent.
In a video streaming platform, user settings include a selection of language, activation of subtitles, play and pause options, and other aspects to allow users to interact easily with the application.
In your video streaming platform, add support for as many languages as possible depending on the countries you operate in.
While the admin panel is an essential feature, it is actually a separate app inside a video streaming platform. An admin panel will allow you to edit videos, manage comments, publish, manage and delete content.
Build your Netflix like video streaming platform
Global OTT video streaming platform has become an important part of the entertainment culture. If you want to build a video streaming platform, you can either collaborate with a technology partner to build your streaming application from scratch. However, this is an elaborate and expensive affair. To build a Netflix-style streaming platform cost-effectively, using a Netflix clone script is an alternative approach. This is an efficient and cost-efficient way to build your video streaming platform based on your unique project requirements and business goals.
Currently, there are a plethora of video streaming apps in the industry but due to its popularity, there is ample space for a unique video streaming platform. If you have the right mix of business models, great content and monetization strategies, well-thought marketing plan, you are all set to enter the streaming space. Hope this blog gave you insights on starting a video streaming platform like Netflix. Share your valuable thoughts in the comment section below.