In 2023, an astonishing 467 million people watched films online, and the number of individuals streaming videos on various platforms soared to about 1.5 billion. Create a video streaming website

A wise person once said, “Stream it as you mean it,” and indeed, video streaming has become an essential part of daily life, much like other household commodities. Once considered a luxury, over-the-top (OTT) platforms are now a common fixture in homes worldwide.

Thanks to industry giants like Netflix, Hotstar, YouTube, and others, the video streaming business model has transformed the entertainment landscape.

For context, Netflix alone generated $31.6 billion in revenue in 2022, with a net income of $4.4 billion. The streaming behemoth’s net worth has skyrocketed from $3.58 billion in 2010 to an impressive $140.36 billion as of March 2023.

Create a video streaming website

YouTube, which dominates the AVOD (Advertising Video on Demand) market, is valued between $140 billion and $300 billion as of 2023, according to Business of Apps.

Industry reports indicate that the OTT market, with a compound annual growth rate (CAGR) of 15.2%, is expected to expand from $149.34 billion in 2022 to $171.99 billion in 2023. Create a video streaming website

Clearly, OTT platforms have gained immense popularity over the past few years.

If you’re a content owner or producer, launching your own online video streaming platform—similar to Netflix—could be a lucrative venture.

Understanding Netflix’s Success

Netflix’s success can be attributed to two key factors:

1. Rich Digital Assets: Netflix boasts one of the most comprehensive and versatile video libraries among OTT platforms. By producing its own content rather than relying solely on third-party offerings, Netflix has revolutionized the online streaming industry. Its original shows are among the most-watched globally and have garnered a loyal fan base.
2. Effective Subscription Plans: Netflix’s straightforward yet efficient subscription plans—Basic, Standard, and Premium—cater to various consumer segments, helping the company generate consistent revenue. Create a video streaming website 

Netflix’s Subscription Plans

Create a video streaming website

Key Elements of Netflix’s Value Proposition

1. Accessibility: Netflix’s cross-platform video delivery strategy enables users to access content on multiple devices and operating systems. This feature, which Netflix adopted early on, has significantly enhanced its user experience, allowing millions to access their watchlists from browsers, smart TVs, tablets, and mobile apps seamlessly.
2. Original Content: Netflix’s exclusive programs, award-winning shows, and unique reality series motivate users to subscribe. The platform’s in-house productions, along with content from third-party publishers, add immense value to its offerings.

How to build an OTT video streaming app?

1. Ad-Free Experience: With a premium video-on-demand subscription, Netflix provides a clean, ad-free experience, which is a significant draw for users. The majority of Netflix’s revenue comes from subscriptions, with ad revenue accounting for only 10% of the total.
2. Global Reach: Netflix operates in over 190 countries and offers content in more than 20 languages, making it accessible to a diverse global audience.
3. Affordable Pricing: Netflix follows a low-price, high-revenue philosophy, making it an affordable option for middle to upper-middle-class audiences. By keeping subscription prices low, Netflix continues to grow its subscriber base.

Create a video streaming website

Building Your Own Netflix-Like Platform

Creating a successful video streaming platform requires careful planning and execution. Here’s a step-by-step guide:

1. Plan Your Content: Understand your target audience and create content that engages and entertains them. Decide whether to partner with third-party publishers or focus on original content.
2. Define Your USP: Your Unique Selling Proposition (USP) is crucial in differentiating your platform from competitors. For Netflix, technology and accessibility have been key USPs. 
3. Choose the Right Platform Provider: Selecting the right OTT platform provider is essential. Look for features like cross-platform accessibility, live streaming support, VOD hosting, and robust security tools.
4. Incorporate Essential Features: Your platform should have a user-friendly interface with features like reliable video hosting, content availability, and a seamless user experience.  Create a video streaming website
5. Monetization Strategy: Decide on a monetization model—whether subscription-based, pay-per-view, or ad-supported. Consider hybrid models for maximizing returns.
6. Prioritize Security: Ensure your platform has strong security features to protect content from piracy and unauthorized access.

Create a video streaming website

Conclusion

The demand for unique, high-quality content continues to grow, and the OTT market presents ample opportunities for newcomers. With a solid business strategy, careful planning, and the right platform provider, you can build a successful video streaming venture like Netflix.

Why wait? Start your journey today