Do you remember the days when family members argue about what to watch next? Now, the days of the past. With online movie streaming services, you can watch anything, anytime, from any device. Also, the streaming video market globally is estimated to be worth more than $ 125 billion in 2025. And if you want to join the party, this is the right time. The Demand for mobile apps is increased and become more popular for peoples in daily lives. This made Mobile app development companies in Bangalore to get more business through mobile app development.

Below, you’ll find success stories Netflix and tips on how to start a streaming service.

Let’s get started.

The story behind the success of Netflix

Netflix is the industry leader in video streaming. Starting from a company’s DVD-by-mail in 1997, Netflix now has more than 118 million paid subscribers. In the US alone, more than 50% of households using these services. But why Netflix is so popular?

In 1998, Netflix launched a web-page. Besides, the platform is changed from the ‘Pay per rent’ model ‘Monthly Subscription’. In the early 2000s, focusing on the Netflix online streaming service, and it paid off. In 2008, Netflix finally introduced a streaming service that we know today.

Currently, the company is known for original shows, classic television, and film. And revenue is estimated at $ 17.63 billion in 2019. Before answering the question of how to start a streaming service, let’s take a closer look at Netflix.

Netflix business model

The business model is not just about how you monetize your business. It is also about how you embrace your audience. Also, business models create an ecosystem of organizations, able to scale up in the future.

Netflix uses a subscription-based business model. In combination with global expansion, this business model allows the company to increase rapidly and steadily.

Netflix Value Proposition

Netflix value proposition includes four important elements, such as:

Accessibility. Companies deliver video across different platforms, operating systems, and devices. By using this approach, Netflix maximizes its fan base. Customers watch their favorite video content through the browser, tablet, and other devices.

original content. Netflix exclusive broadcast and showed a third party publisher. Also, the service offers several in-house events that are not available on other platforms.

Without advertising. Netflix shows your ads only to users of a free account. But, we all know how annoying ads when you watch your favorite series. At the same time, owners enjoy online streaming premium subscriptions without commercials. In this way, the services encourage users to purchase a subscription.

recommendation algorithm. Netflix has thousands of T.V. shows available for streaming. Recommendations algorithm collects relevant content and increases engagement with the platform.

How to Make Your Own App Streaming Service

Netflix-style business development is not as difficult as it seems. To achieve this, you need to go through several steps as described below.

Step 1. Find your niche

The first thing to do is to decide what content your application will be streamed to the user. To give instructions on steaming profitable niche, we have put together some ideas below.

Entertainment. Netflix and HBO showed us the entertainment that the streaming service is very advantageous. The audience is large enough to accommodate the new streaming provider.

Fitness. Fitness is another niche candidate for VOD services. People will be happy to pay a subscription to have access to fitness-related videos at any time. Additionally, you can add different video categories, such as yoga, dance training, or a healthy diet to boost a wider audience.

Education. Nowadays, people are more likely to watch “How to” video, rather than reading the tutorial and instructions. Additionally, you can choose from many sub-niches, such as magic tricks, baking, or even origami to attract a specific audience.

Step 2. Determine the availability of content

Because the content is the basis of an on-demand streaming service, you need to determine what your content will be.

Are you using videos from other distributors?

Or, if you want to make your video content?

If you want to work with a video distributor, you need to obtain a license for public performance. There are two ways to deal with it:

Renting a movie from authorized distributors with a license

Contact the copyright holder

Both options are legit, and the choice depends on your business goals. If you choose the first option you may contact one of the two leading distributors authorized or movies and series T.V. in the United States:

Motion Picture Licensing Corporation (MPLC)

SWANK Motion Pictures

As for the second option, you need to get in touch with the studio which is the legitimate holder of the specific content.

Step 3. Select the model of monetization

For your services proposed on-demand video you can choose between three methods of video monetization:

Pay-Per-View is the simplest pricing scheme which means users pay for each video to watch. You can apply this model if you want to develop a platform to broadcast concerts, trade shows, conferences, or sports events, such as boxing and MMA.

Advertisement. You can charge other companies to run video ads on your platform. However, this monetization strategy will only work if your platform will become famous among users.

Subscribe. As you will recall, Netflix uses this exact monetization strategy. In addition, the subscription model is used by a third of a professional announcer. Customers are charged monthly to receive access to a library of content. You can use this monetization technique if you regularly will release new content on your platform

Step 4. Study the video streaming mobile app development requirements

For your videos to perform well, you need to balance the following performance characteristics:

Internet Speed

the impact of Internet speed platform capabilities on-demand streaming video. The minimum internet speed for streaming standard definition movies more than 2 Mb / s (megabits per second). But to broadcast HD, 3D or 4K, your internet speed must be much higher. Let’s examine an example of Netflix.

Cloud hosting and computing architecture

To keep the video content we recommend using a cloud hosting platform for cloud hosting has the following advantages:

A cloud hosting platform that is flexible and increases the number of automatic space.

The platform allows quick access to video content

The cloud hosting platform is cheaper than hard drives

An on-demand video platform requires a complex architecture. As your business grows, your architectural complexity will only increase. Next, you need to think about scaling your platform from scratch. In this way, you can avoid complex data migration.

Additionally, you can use cloud computing capability for many operations, including:

Search engine

system recommendation

A test B

streaming service

caching architecture

More recently, we developed a cloud dataflow Nanopore for DNA sequencing applications. We solved the problem by using a data transfer speed of data processing and subsequent storage of the incoming data. To find out more, read the CASE STUDIES: DIAGNOSTIC REAL-TIME OF nanopore DNA sequencer

network connectivity

Even if you are not streaming online platform is growing rapidly, assume that it will improve in the future. To achieve this, you need to integrate a content delivery network for your service. Content delivery network (CDN) video broadcast to customers through a network of servers. CDN streaming application turns into a scalable system to handle significant traffic.


You need to consider the content protection from unauthorized access across the customer’s device. To ensure that you secure streaming video service, consider the following:

background Network provides 24/7 monitoring and content availability in case of server failure.

Security Token prevents access to video from the source 3rd party without your consent.

Domain restrictions lock content to certain domains. Thanks to this feature, other users can not see the link embedded in the source code and insert it into another platform or website.

geographic restrictions to exclude certain locations due to licensing agreements.

Watermarking provides additional security level live streaming. Thus, you retain the rights to your content.

payment gateway

To provide your customers with a variety of payment options, you can use the following popular payment solution:

Stripe, which supports subscription services, has a premade UI components and API-first approach to adjusting the payment gateway for your platform.

2Checkout which supports payment via Visa, Discover, MasterCard, JCB, PayPal, or credit/debit card.

PayPal Payments Pro, which allows you to create and host your own checkout pages for full control.

Braintree. This payment gateway operates in more than 40 countries and receives payments in over 130 currencies


Step 7. Develop services on-demand streaming MVP

The last part of our guide on how to start an online streaming video business is a development stage. During this stage, you have to clarify the functional requirements and non-functional, set a schedule, think about the design, and so on.

Paying extra attention to your proposed design platform for seamless user experience is the key to the success of Netflix. This platform requires an intuitive user interface. Thus, users can easily navigate through movies and shows, create a “register,” search by genre, actor, director, and so on.


Since 1997, Netflix has become one of the leaders of the media industry. With a subscription-based model, the company continued scaling and investment in technological innovation.

When developing a streaming video application, let the industry leaders, such as Netflix, for example to your success. In this way, you can adjust their business strategies to serve your video. Consider choosing a niche and technology stack for Streaming online application. Moreover, taking into account the specific needs of a particular industry, such as a complex cloud architecture. Once you have a clear picture of your project, you can hire mobile application developers to bring your ideas into reality.

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Written by Ashok Kumar

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