6/29/22, 4:57 PM How To Start A Streaming Service Like Netflix ?

How to Start a Streaming Service: Step-by-Step Guide for Ambitious

App Ideas
23 min read

In the second quarter of 2021, Netflix generated total revenue

of over 7.3 billion U.S. dollars, up from about 6.15 billion in the
corresponding quarter of 2020.

Do you want to know how to start a

streaming service like Netflix?
We prepared this article to help you understand the best ways
to create a streaming service. As you read the text, it will uncover
the insights and valuable tips for building a streaming platform.
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6/29/22, 4:57 PM How To Start A Streaming Service Like Netflix ?

Key statistics explaining why it’s worth creating a platform like

Netflix
How to start a streaming service with step-by-step instructions
The cost of creating a streaming service in 2022

WHY IT’S WORTH TO CREATE A STREAMING SERVICE

The success of Netflix, HBO, and Hulu is highly inspiring.

Looking at the results of their work, many businesses have
started thinking about creating streaming services like Netflix.
There is a lot of sense in the decision to make such a service
today.

Before we move on and define how to start a streaming

service, let’s first look at some statistics. If you have any
doubts about creating a similar application, they will resolve
any of them.
In 2019, the global video streaming market size was
estimated at $42.6 billion. The market is predicted to grow
at an annual growth rate of 20,4% from 2020 to 2027 and
reach over 150 billion. (Grandviewresearch, 2020)
The COVID-19 pandemic boosted the popularity of video
streaming services. Overall, the industry rose by around
10%. Netflix registered a 50% growth in first-time
installations in March 2020. The amount of viewership of
Twitch increased by 31%. Grandviewresearch, 2020)
The great part of revenue ($36 billion in 2022) will be
generated in the United States (Statista, 2022).
The number of users in video streaming services is
expected to grow to 1,4 billion by 2026 (Statista, 2022). 
In 2021, Netflix’s total annual revenue reached over $30
billion. Netflix reported revenue of over $11,45 billion in
North America. (Statista, 2021, Business of Apps, 2022)
The net income of Netflix in 2019 reached over $5,16
billion. (Statista, 2021)
The average revenue per user is expected to amount to
$58.52
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6/29/22, 4:57 PM How To Start A Streaming Service Like Netflix ?

Netflix's International Expansion

120
JS chart by amCharts

100

80

60

40

20
2015 2016 2017 2018 2019

International USA

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Even though the market has a lot of solutions, only a few

applications take up the vast majority of the market.

Number of
  Prices Funding
Users
Netflix 214 mil $9+/mth $3.1 bil
Hulu 45,3 mil $5.99+/mth $683 mil
Disney+ 129.8 mil $6.99+/mth $35 bil
Apple TV 40 mil $4.99/mth N/A
Twitch 140 mil $4.99+/mth $35 mil
HBONow 47 mil $14.99+/mth N/A
Amazon Prime
157.4 mil $8.99+/mth N/A
Video
Crackle 30 mil Free N/A
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6/29/22, 4:57 PM How To Start A Streaming Service Like Netflix ?

Sling TV 10,99 mil $30/mth $63.4 mil

There is no doubt that the market promises huge

growth soon. Therefore, businesses ask how to start a
streaming service that users will love. As you read the
following chapter, you will learn everything about the process.
STEP-BY-STEP GUIDE ON HOW TO START A
STREAMING SERVICE LIKE NETFLIX

How to create a streaming app?

The development of a streaming service doesn’t end with

development. The process comprises of 9 main steps and a
number of sub-steps:

1. Finding a niche and USP

2. Creating a business plan
3. Content licensing
4. Finding a reliable app development vendor
5. Deciding on the video streaming app’s functionality
6. UX/UI design creation
7. Choosing technologies
8. Marketing and promotion
9. Feedback gathering and planning for growth

Let’s review detailed instructions on how to start a streaming

service.

STEP 1: FIND YOUR NICHE AND CREATE USP

Before you move on to creating online streaming apps for

video, you first need to identify your niche and unique selling
proposition.

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While working on this part of your application, it might not be

good to copy an already popular solution like Netflix. Big
names have a vast user base and operate all over the world.
Competing with them is extremely hard to impossible for
small startups.

You shouldn’t think about how to create a streaming service

like Netflix; think about how to start a streaming service with
unique features instead. Only this way will your solution have
any chance for success.

For example, Netflix has a few USPs, like on-demand

streaming of unique content, behavior-based
recommendations, affordable prices, etc. You can see a
detailed overview of Netflix’s business model canvas on the
image below.

Netflix is ​a way to reorganize the TV value chain by

removing time constraints for shows.

The streaming service makes money by selling subscriptions

to its service packages. Of course, this strategy is not easy to
implement. Netflix uses so-called “evergreen content”, the
growth of the volume of which gradually increases the
attractiveness of the service to potential customers (while the
costs of audience acquisition campaigns are reduced).

Aside from traditional on-demand video streaming services,

you can create a number of other solutions, including but not
limited to the following general and niche streaming
services options:

sports events streaming

video game streaming services
educational streaming
live-streaming of events (conferences, etc.)
etc.
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Before identifying the product type for release, you need to

understand the following factors.

the market on which you are going to launch your new

product
potential niches where there is still a place for new
solutions
competition, their strengths, and weaknesses
your target audience and their need in such a solution

After you have decided on key activities, you can create a

business model canvas to structure the USP of your product.

The business model canvas comprises 9 blocks covering key

activities, value proposition, resources, partners, revenue
streams, etc.

STEP 2: CREATE A COHERENT BUSINESS PLAN

You can’t decide how to start a streaming service without

having a strict business plan that will guide all your actions.
Thus, going through this stage and all its steps is essential
for all startups.
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1. Find content creators

Video content is the basis of your streaming service. Before

you move on, you need to understand what type of content
you are going to use:

Content that you create yourself

Content created by third-part creators

It might be good to remember that the first option can take

you only that far since you will need to
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allocate considerable resources to video production.

2. Choose the best monetization model

Without knowing possible monetization strategies, you

cannot decide how to start a streaming service like
Netflix and turn it into a successful business venture.

Here are a few monetization models that you can utilize:

Subscription – this model implies paying some monthly or
yearly sum for a service subscription.
Pay-per-view – with this monetization strategy, users pay
per each view, e.g., a movie, a series, etc.
Advertising – placement of ads by other companies will
help you cover the expenses and generate revenue. As a
part of this strategy, you can include ads blocking option at
an additional cost.
Freemium – some content is available to all users. Other
content might require payment per each view or purchase
of a subscription to your service.

DID YOU KNOW THAT EVEN FREE APPS CAN BECOME

SUCCESSFUL BUSINESSES?
Check the article created by our team to learn about the best
monetization strategies for free apps and discover how much
you can make with a free app:
How do Free Apps Make Money? [Best Strategies for
2021]

3. App location and content translation

When you create a streaming service, you might decide to

launch it in a foreign market. If that’s the point, you will need
to find companies that provide content localization services.
Finding reliable companies that will become your reliable
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partners in the future might be a challenging task to

accomplish. 

Thus, you need to start working on this part of your business

as soon as you decide to move beyond local markets.

STEP 3: LEGAL REGISTRATION & CONTENT LICENSING

Knowing how to start a streaming service from technical is

not enough. Another significant part of preparation is making
the business legal. Aside from legal registration, content
licensing is also an inseparable part of video streaming
services creation.

In the USA, there are two main distributors of video content:

Motion Picture Licensing Corporation (MPLC)

SWANK Motion Pictures

The major solutions work with these licensing companies.

Before creating a streaming service, you need to understand
that video content licensing requires huge investments. Such
companies as Netflix invest billions of dollars in paying for
content licensing. They spend no less on video production.

Some licensing companies can sell you a license not for the
whole series but only for the first season or an episode. Thus,
you need to negotiate the terms before signing any
agreements or choosing a company to work with.

STEP 4: FIND AN EXPERIENCED APP DEVELOPMENT

COMPANY

If you want to know how to create a video streaming service

like Netflix that will have a chance for success, one of the
most important parts is finding a company that will help with
the development process.
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The process of choosing a vendor goes through the following

steps:
Find app development companies on such platforms as
Clutch, The Manifest, etc.
Check the reviews of shortlisted companies
Study the portfolios and previous experience to make sure
it matches your goals
Analyze capabilities and tech specialization
Get in touch with recent clients and ask for reviews

The image below presents a step-by-step process of finding

an app development company. Following this step-by-step
process, you will be able to find a vendor that knows how to
start a streaming service.

If you need a more detailed guide on app development

outsourcing, check the article prepared by our team. You will

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6/29/22, 4:57 PM How To Start A Streaming Service Like Netflix ?

learn the main reasons why companies outsource app

development, the benefits, and how to avoid costly pitfalls:
How do Free Apps Make Money? [Best Strategies for
2021]

STEP 5: DECIDE ON THE FUNCTIONALITY FOR YOU

LIVE STREAMING APP

Video streaming solutions can have several user roles:

Video consumer – end-user who watches the content on

a streaming platform.
Video creator – this user role will be suitable for such
solutions as YouTube or TikTok.
Content admin – this role applies to the administration of
a streaming solution and should allow to moderate content,
upload or delete videos, and perform other administrative
roles.

Depending on the type of app you want to build, you might

need to create an app for each of these user roles. The apps
can have the following features:

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Onboarding – such pages in an app help users get a grip

on the app’s functionality and understand which main
features it provides.
User registration – this is one of the basic and most
important features of streaming services like Netflix.
Registration via email or social media is the most
convenient option for users.
Social sign up and sign in – the ability to log in with the
help of social media.
User account – users can view their favorite videos, view
history, add new ones to the list, update their user
information, and control billing.
Search – an advanced content search that will allow users
to filter content by genres, recommendations, release date,
etc. Its main goal is to make the search easy and fast for
end-users.
Reviews and ratings – the ability to rate content
and leave video reviews.
Push notifications – can be used to notify users about
new content releases, updates, and billing details.
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Payment gateways – integration with Braintree, Stripe,

PayPal, Apple, Google Pay, etc., to allow users to pay for
content or subscription.
Settings – basic settings should include controlling
sound level, activation of subtitles, play and pause options,
selection of video quality, and playback speed.
Multi-language support – the ability to choose the
language of video playback and turn on subtitles.
Screenshot ban – prevention of making screenshots and
video recordings of the screen.
Geo-restriction – ban the use of the service from certain
locations.
Download feature – ability to download content to the
local storage of devices.
Admin panel – provides the ability for app admins to
moderate content and users and perform other back-office
operations.
Analytics – features for admins that help analyze how
users interact with the application, which features they use,
and what content they prefer.
Video quality selection – ability to choose the preferred
quality of video content to watch.

The number of features you decide to implement directly

influences the complexity of mobile app development and
development cost. Thus, it might be reasonable to include
only the most important and basic features in the first version
of your application.

DO YOU WANT TO KNOW ALL THE FACTORS

INFLUENCING MOBILE APP DEVELOPMENT COSTS?
Check the article disclosing cost drivers of mobile app
development and explaining how to minimize financial
resources while building apps: 
How Much Does It Cost to Build an App? (2021 Cost
Calculation)

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STEP 6: CREATE UX/UI DESIGN

If you wonder how to start a streaming service that users will

love, there is no better way to gain their love than with a user-
friendly interface. 

When you create a streaming service, don’t try to copy the

visual representation of Netflix or any other service. The best
decision that you can make for the future of your startup is to
create a unique style that will make your app different from
the competitive applications.

STEP 7: TECHNOLOGIES TO CREATE A STREAMING

SERVICE

If you want to know how to start a streaming service like

Netflix, you must understand which technologies are required
to create such an application. Even though users don’t see
this part of the app, building a streaming service with the right
technologies is required for its proper functionality.

Below you can see an example of a tech stack that can be

used to create a video streaming service.

  Android iOS
Programming Kotlin, Java Swift, Objective-C
languages
Toolkit Android Studio, Android Developer Tools Apple Xcode

SDK Android SDK iOS SDK, Cocoa Touch

Streaming RTMP, Adobe HTTP Dynamic Streaming, Apple HTTP Live Streaming, M2TS,
protocols MPEG-DASH, Microsoft Smooth Streaming, WebRTC, RTSP/RTP

Media MKV, MP4, AVCHD, AVI, DMW, MOV, FLV, WMV, SWF
formats
Codecs H.264/AVC, FFmpeg, XviD

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Media MP4, FLV

containers
Cloud AWS
services

STEP 8: MARKETING AND PROMOTION

Knowing how to start a streaming service is not enough.

Without a comprehensive marketing strategy, no one will
know about your application. That’s why marketing and
promotion should become integral parts of your strategy.

A compensative marketing campaign includes the following

activities and stages:

Paid ads – will help to tell about your streaming application

and get the first users.
SMM – the best way to connect with potential users and
create a relationship with current customers
Influencer marketing – working with bloggers and
influencers will allow you to connect with multi-million
audiences.
SEO – search engine optimization tactics will help you
promote your landing pages to show them in the first
positions in search engines.
Events – you can promote your application at live events
like conferences, meetings, etc.

Partnerships – you can cooperate with other startups

and companies to promote your video streaming application
at their events, among partners, etc.

STEP 9: GATHER FEEDBACK & PLAN FOR

IMPROVEMENTS
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