How to Start a Streaming Service like Netflix: A Step-by-Step Guide
- Updated: Nov 10, 2024
- 19 min
Senior Mobile Developer
Entertainment has become a huge part of everyday life. With technology and internet accessibility growing, people can now easily stream movies, music, and games online.
The entertainment industry alone is projected to hit $2.6 trillion by 2024.
Video streaming services are playing a major role in entertainment. Platforms like Netflix, Hulu, and Amazon Prime continue gaining popularity.
The global video streaming market was valued at $42.60 billion in 2019 and is forecast to grow at an annual rate of 20.4% through 2027. For example, Netflix recently added 16 million new subscribers, bringing its total user base to 193 million.
Industry reports also show the over-the-top (OTT) market was worth $121.61 billion in 2019. Experts predict it could reach $1.039 trillion by 2027.
These growth metrics highlight the immense potential of building a successful video streaming service.
But where do you start if you want to launch your own streaming platform? What kind of competition exists? How much does it cost to build a video streaming website?
This comprehensive guide tackles the critical questions around creating an online video streaming business, including:
- An overview of the video streaming industry landscape
- Actionable steps for starting a streaming service like Netflix
- Finding the best business model for an online video streaming venture
- Budgeting for the costs of building a video streaming website
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Video Streaming Market Overview
It is crucial to consider the market overview 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.
Moreover,
- 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.
Why Launch a Video Streaming Service?
The process of how to start a video streaming service like Netflix includes discovering the reasons for launching the service. It is essential to aim properly before shooting the target. Similarly, if you want to learn how to start an online video streaming business, you should have a justified reason.
There are countless factors that fall in favor of developing a video streaming website.
- Market Demand: How to start a streaming service like Netflix depends heavily on market demand. It is pretty obvious that if there is no demand in the market, your product will not be successful.
On the other hand, the demand for on-demand video streaming is skyrocketing at the current time. It is estimated that around 882 million users have subscribed to an on-demand video service for entertainment.
Moreover, there are many video streaming services that started in the last few years. Some of the best examples are:
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- Sling TV
- Disney+
- ESPN+
- AppleTV+
- HBO Max, and many more.
Hence, from the market point of view. It is the best time to learn how to build a website for video streaming.
- Convenience: Time is money. No one wants to see commercials during a TV show. People want breakless content. This is another reason that convinces you to learn how to start a video streaming service like Netflix.
People need content anywhere and at any time. This is a factor that you need to harness. As per a study by It Worth More,
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- 53% of people will wait for a season to arrive on the streaming platform.
This is because:
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- 67.4% of them wanted to avoid advertisements.
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- 67.4% of them wanted to binge-watch the entire season.
- Users like to watch the season at any time.
- They can pause the show whenever required (53%).
Hence, user convenience is a genuine reason for you to learn how to build a good video streaming website.
- Trends: Technological advancements are also penetrating the video streaming market. Not on a large scale, though, but they are showing promising results.
The recent trends that are paving the path for advancement in the video streaming market are:
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- 360-degree videos, AR, and VR: Till now, the trend of AR, VR, and 360-degree videos have not greatly affected the video streaming market.
But, it has the potential of revolutionizing the user experience. In the coming years, with the introduction of 5G technology, it will change the way we watch a web series.
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- 8K video: Right now, 8K technology is not that popular. But, the global 8K market is expected to hit the $26.6 billion mark by 2024.
Hence, it is a great trend for you to investigate. Understand how to harness it before learning to start an online video streaming business.
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- Automated live video experience: AI and machine learning are also speculated to affect the video streaming industry. AI and machine learning can easily automate the process of video production and distribution. For a data-driven view of how AI is transforming industries, explore the latest AI statistics.
Moreover, the smart live video can automatically stream video as soon as it hears the voice of a particular person.
AI and machine learning can also help automatically detect copyright issues. This makes it important before learning how to start a video streaming service like Netflix.
For example, Netflix uses AI and machine learning to understand user preferences and suggest the content. It also generates multiple images from a movie or a show to shortlist the perfect thumbnail.
To increase the click count, Netflix analyzes and ranks the images to get the perfect one. It also analyzes the thumbnails clicked by other users to choose the best one.
You need to consider these latest trends before learning how to start an online video streaming business.
How to Start a Video Streaming Business
Finally, we arrive at the most important question: How do we start a streaming service like Netflix? Now, the answer to this question includes two parts. The first part is:
The Business Side
There are basically 4 crucial things that you need to take care of while building a video streaming website.
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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. Some of them that you can consider are:
| Niche | Description |
| Education | The trend of online tutoring is picking up pace. The online tutoring market is also expected to hit $132.21 billion in the time period of 2020-24.
These days, people prefer to watch a video to learn something rather than read about it. Moreover, the recent spread of COVID-19 has also hyped the demand for online tutoring. So, you can consider building an ed-tech startup like video streaming website. |
| Fitness | The busy lives of people have disconnected them from their health perspective. Today, most people cannot save time for gymnasium because of their busy work schedules.
This has pushed up the need for fitness apps and platforms. The fitness app development market is expected to grow up to $15.96 Billion by 2026. There are many examples of such platforms like Obe, NEOU, AKT on demand, and many more. So, if you develop a fitness-based video streaming website, people will love to pay for a subscription. You can also learn how to add workout videos on the website to start a potential streaming service like Netflix. |
| Entertainment | Netflix, Amazon Prime, and Hulu are some of the great names in the list of entertainment video streaming websites.
Moreover, the entertainment video streaming platform market is skyrocketing right now. It is ready to hit the $184.27 billion mark by 2027. Netflix has around 182 million subscribers worldwide. This means that a large group of the audience prefers to watch web series and movies. These stats clearly suggest that there is a lot of scope for entertainment video streaming websites. So, go for one! |
| Infotainment | How about mixing some fun with learning. The information or knowledge-based video streaming website also has a wide scope in the future.
People are more likely to watch content without ads than with ads. Discovery+ is the best example of such a website. |
| Cybersports | How about making a video streaming website for gaming. Cool, isn’t it!! The market of multiplayer online sports gaming is already high right now.
Moreover, the Esports market is estimated to touch the $1.5 billion mark by 2023. Counter-Strike: Global Offensive is the perfect example of a Cybersport game. It has around 1,301,348 players. This clearly states that Cybersports is also a potential niche for you to develop a streaming platform. |
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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.
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- 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.
Here are some of the issues that the users experience in the video streaming apps today:
| Pain Points | Description |
| Limited regional access | Websites like Netflix have some content that is not available in the U.S.
Similarly, some of the video content is unavailable in other countries. Hence, this is a major drawback of apps. |
| High data consumption | The process of how to start a streaming service like Netflix also demands attention to data consumption.
Although there are improvements in the apps in the last few years. For example, Hulu consumes 2.7 GB/hr, and Amazon Prime consumes 2 GB/hr at high-definition. On the other hand, services like Netflix and Youtube consume 3 GB/hr, and 3.04 GB/hr respectively at high-definition. These high figures generally discourage users. Hence, they become one of their pains. |
| The number of screens | The number of devices on which you stream content is also a crucial pain point to consider. This factor highly governs the question of how to build a website for video streaming.
If we consider the apps of today, here are the figures for the number of simultaneous screens on various platforms:
The number of simultaneous screens varies based on factors like subscription price and type of device. This opens a window for you to offer better options to the users. Thus, you can learn how to start an online business for video streaming and make it better than others. |
| Ownership of content | Most of the video streaming services allow downloading of content but not for a long time.
Services like Apple TV+, HBO Max, Disney+, and Netflix allow downloads to stay for only 30 days. So, the users only have access to downloads for only a month. It is essential to note this drawback while learning how to start a business of online video streaming. |
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- 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.
Now, coming up with an exciting USP will need research. You need to consider the following factors:
| Factor | Description |
| User behavior with the content | Comprehensively study user reviews and feedback.
These will help you know what type of content the user wants. Moreover, you can also study user demographics to know about their preferences. |
| The niches that lack premium quality products | There are a plethora of niches to watch for.
In the process of how to build a website for video streaming, research about the niches that don’t have good products in the market. You can also club multiple niches like fitness and food in one to broaden the scope of your audience. |
| Location | The location of your business is also a critical factor in how to start a business of online video streaming.
To make your video streaming website perform well on a global scale, you need to first test it in and around your location. Moreover, make sure that the content you develop is available worldwide and not just in your country. Geo-blocking is the feature that you need to look into to allow users to access content around the world. |
| Content ownership | As discussed above, most of the video streaming networks don’t allow permanent ownership of the content, even after downloading.
The downloaded content stays on the platform rather than on the user’s PC. Therefore, you have a great feature to add to your USP and thus succeeding in how to build a website for video streaming. |
| Embed fresh trends | Technologies like machine learning, AI, 360-degree video are disrupting every aspect of our life.
Hence, you can harness these trends to make your video streaming app stand out from the others. |
The integration of innovative features like voice unlock and auto-detection of copyright issues will help in harnessing subscribers.
Now, while learning how to start a streaming service like Netflix, you should not just consider these factors. You can also check the pricing of other services with respect to the features offered by them.
This will assist you in framing a much better USP. Keep a close eye on the problems faced by the users while farming a USP.
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- 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 (learn more in our article I have an app idea).
- 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.
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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.
Our easy-to-use ARR calculator is ideal for SaaS companies looking to track revenue growth.
To help you understand better, here are some of the best revenue generation models:
| Monetization Model | Description | Examples |
| Subscription video | The first monetization model in how to start an online video streaming business is subscriptions.
In return for a monthly or yearly premium, provide your users with unlimited video content. This is a very basic revenue fostering model for a video streaming business. |
|
| Ad-supported video | This is also a great way to harness revenue. How to start a video streaming website process can also help you attract revenue from ads.
In this, the video content can be embedded with ads to get revenue from business partners. However, one needs to have a high number of subscribers. |
The perfect example of an Ad-supported video model is:
|
| Transactional video | The transactional video model is kind of a unique revenue generation model.
In this model, you can offer the content at a rental or for owning. Users need to pay a one-time premium for the content. For renting, users need to renew it after a certain time. |
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| Hybrid | Lastly, in how to start a streaming service like Netflix is a Hybrid revenue model.
You can integrate multiple revenue models in this to boost ROI. |
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| Licensing self-owned content | You can also empower your how to start an online video streaming business with this futuristic model.
Licensing self-owned content to others can foster high revenue for you. |
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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.
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- 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!!!
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- 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.
Coding and Testing
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 while learning how to start an online business for video streaming:
Learn more about the role of MVP in business.
| Feature | Description |
| User Registration and profile | The key feature of a video streaming service is the registration of the user.
To make registration convenient for the users, including registration through social networks and emails. Moreover, it is essential to add the facility of multiple profiles. Multiple users should be able to stream content on the website through one account. Here the users can add their favorite shows and movies. |
| Web Push Notifications | Next in the list of features of how to build a video streaming website is notifications.
To make your users aware of the latest content, integrate the feature of web push notifications in the MVP. |
| Content Search | To make the website better for your users, integrate the content search feature.
It helps the users in searching for the required content directly. They can search for content based on name, genre, actors, director, reviews, and more. |
| Payments | When users want to purchase a subscription, there should be a streamlined system for it.
Hence, it is essential to learn how to include a payment gateway while building a video streaming website. Although if you are using the OS of Apple or Google, there is no need to include a payment gateway of your own. These OSs already have one that you can use. Though, they charge 30% of payments as a service fee. If using your own payment gateway, you must include payment methods like PayPal, Stripe, etc. |
| Reviews and ratings | For a better understanding of your content quality, allow users to review and rate it.
This will help you frame the content on your website and enhance user retention. |
Further, in the process of how to start a streaming service like Netflix, there are some additional features that you can include to make your website unique.
| Feature | Description |
| Multiple language support | To make your website accessible at a global level, including multi-language support in it.
It will help you harness more users and revenue. |
| Blocking of screenshots and screen recording | This feature is a must to prevent content piracy and for the protection of copyright. |
| Content recommendation | Include this feature to provide similar content to the users based on their preferences. |
| Download | Integrate this feature to allow users to stream content offline.
To make it better, add the feature to download the content to their computer or phone. |
| Video Quality adjustment | Add this feature to allow users for streaming content in the required video quality. |
Essentials of How to Build a Website for Video Streaming
How to start an online video streaming business and make it successful? One of the ways to do it is to make it more powerful and unique than others.
Make sure that your website has the following features:
| Feature | Description |
| Content Delivery Network | Deploy a CDN (Content Delivery Network). It helps in quick access to content on the website.
As servers of the CDN network are in close vicinity of the users, the load time decreases, which helps in customer retention. This churn rate calculator is a useful tool for SaaS businesses aiming to maintain a stable customer base. |
| Storage | To make the process of how to start an online business of video streaming successful.
Harness the power of cloud storage; it will help in seamless content delivery. Moreover, it is safe. |
| Security | The Internet is not a safe place. So, it is crucial for you to deploy strong security measures to prevent unwanted intrusions. |
| Bandwidth | To handle a large user base in the process of how to start a streaming service like Netflix.
Make sure that you have a high bandwidth. It will pair remarkably with the CDN system. |
Choosing a 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.
| Function | Technology | Description |
| Cloud hosting | Amazon EC2 Servers | The technology provides a secure and flexible compute capacity in the cloud. |
| Framework | Laravel | It is a platform used for data-intensive real-time applications that run across distributed devices. Discover the best Laravel tools and resources for developing robust web applications. |
| Database | MySQL or Cassandra | These are some of the great databases for data warehousing and logging applications. |
| Database cluster management | Dynomite | Dynomite is a dynamo layer used to implement high availability and cross datacenter on storage engines. |
Frontend technologies
Here is how to utilize frontend technologies and build a video streaming website.
| Function | Technology | Description |
| Javascript UI Library | React JS or Vue JS | The frontend library that runs on the browser. This javascript library is used to develop user interfaces.
Our guide to the cost to hire a React.js developer explains everything from hourly rates to experience levels. |
| Android | Java, Javascript, Kotlin | Kotlin is the best statically typed programming language for Android applications other than Java. |
| iOS | Swift | Swift is one of the best programming languages for iOS, macOS, watchOS, and more. |
DevOps
DevOps also have an indispensable role to play in how to start a video streaming service like Netflix. Here are some of the best technologies.
| Function | Technology | Description |
| Code collaboration and version control | GitHub | Github is a great web-based platform for version control. It lets you and your people work on a project together. |
| Server management | Apache Mesos | It is a cluster manager that offers resource isolation and sharing across applications and frameworks. |
| Log management | Sumo Logic | It delivers real-time IT insights to you by using machine-generated big data. You can also use it for log management and security. |
| Mobile error management | Crittercism | You can use this technology to manage and monitor mobile performance. |
| Performance monitoring | Boundary, LogicMonitor | It is used by businesses for monitoring on-premise, cloud-based, and hybrid data centers.
This article on the cloud migration discovery phase outlines the key steps for a successful migration. |
If you want to learn more about DevOps specialists, check out our DevOps glossary that covers key terms to help you stay on top of DevOps practices and tools.
What’s the Cost to Build a 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.
- 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.
- 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.
- 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.
If we talk about the time required for developing your own streaming service, it will take a little over 1400 hours. And based on the location from where you are getting your website developed, it will cost as follows:
| Country | Pros / Cons | Price per hour | Final Cost |
| USA | + Good quality
+ Easy to communicate + Same time zone
– Extremely cost – The lack of developers |
$150 | $210,000 |
| India | + Very cheap
+ Many developers
– Poor quality – Lack of expertise – Hard to communicate – Specific time zone |
$25 | $35,000 |
| Ukraine | + Same quality as in the US
+ Easy to communicate + Deep expertise + The wide pool of talents |
$40 | $49,000 |
Looking to Build Your Own Netflix?
Launching a successful video streaming service presents challenges. But this guide outlines steps to set your platform up for long-term growth.
The key next move? Finding the right web development partner. Choose a team that offers creativity, technical expertise, and business insight.
At SpdLoad, our dedicated web developers deliver on all fronts. We’ve helped multiple streaming startups build innovative platforms from the ground up.
Whether your goal is becoming the next Netflix or dominating a niche, our tailored solutions get results. We craft feature-rich, user-friendly, and cost-optimized streaming products.
As a Clutch Leader in Ukraine, we’re excited to bring our clients industry-leading expertise and dedication.
Schedule a consultation to discuss how we can turn your streaming vision into reality with our agile approach.
If you’re entering the SaaS world, these best SaaS startup ideas are worth exploring.
