OTT App Development Cost – Features, Process & Trends

• Jignesh Nakrani
• November 24, 2023
• 6 min read

In the era of digital media, the realm of entertainment has undergone a dramatic transformation. Over-the-top (OTT) platforms have emerged as frontrunners, revolutionizing the way we consume content. With a surge in demand for personalized, on-demand entertainment, the OTT app development industry is booming.

Unless you have been avoiding the digital world or maybe living under a Wi-Fi-free rock, you and I have likely witnessed the revolution in the way we consume content. There has been an explosive surge in the desire for fast-on-demand video streaming content that caters to every taste. This shift is precisely why OTT platforms have emerged as the reigning champions of the decade.

If you’re considering venturing into the dynamic realm of OTT platform development, you’re embarking on a journey filled with immense potential and exciting challenges.

Whether you are a tech wizard in the making or just someone with a love for on-demand content and wondering if building your own OTT platform is the next move in your digital journey, hold on! We are about to dive into the burning question: How much does OTT app development cost? Spoiler alert: it’s not pocket change, but hey, neither is the entertainment game.

Let’s commence.

What are OTT services?

OTT (over-the-top) media services are streaming media services that deliver content directly to consumers over the Internet, bypassing traditional cable, satellite, or broadcast television platforms.

OTT services typically offer a wide variety of content, including movies, TV shows, web shows, documentaries, and original programming. They can be accessed on a variety of devices, including smart TVs, computers, smartphones, and tablets.

Some of the most popular OTT services include Netflix, Amazon Prime Video, Disney+, Hulu, and HBO Max.

OTT App Development Market Trends

• The global OTT market revenue is projected to grow from $295.40 billion in 2023 to $420.10 billion by 2028.
• India is a major player in the OTT market. In 2023, the Indian OTT video market is worth $3,666.00m, and it is projected to reach $5,586.00m by 2028.
• Netflix, with over 150 million paid subscribers, is the world’s largest OTT provider.
• Video streaming app development is anticipated to reach 6.2 percent by 2025.
• The OTT video advertising market is expected to reach $176.60 billion by the end of 2023.
• The total number of users in the OTT video market is estimated to be around 4.22 billion in 2027.

Source: Statista

Essential Features to Include in the OTT Platform

Over-the-top apps have revolutionized the way we consume media, allowing users to access video content anytime, anywhere. To stand out in the crowded OTT market, apps must offer a seamless and engaging user experience with a comprehensive set of features.

• User Authentication (Sign Up and Log In)

This fundamental feature allows users to create accounts and log in, providing a personalized experience. It involves the secure entry of personal information, leading to the establishment of user profiles accessible across multiple devices with a simple username and password.

• Multilingual Content Availability

To broaden its reach, an OTT app should offer content in multiple languages. This strategic approach caters to a diverse demographic, transcending geographical boundaries and making the app more inclusive.

• Search and Filtering

The inclusion of an efficient search or filter option is imperative for users to seamlessly navigate the app. User-friendly design and the incorporation of popular choices, enhance the overall user experience.

• User Profile

The app should feature a user profile section, empowering users to customize their app interface, manage preferences, choose payment methods, and receive personalized content recommendations based on viewing history.

• Watchlist and Continue Watching

Enable users to create their own watchlists to save and organize videos they want to watch later. Implement a “Continue Watching” feature that remembers the last playback position of recently watched videos, allowing users to resume playback seamlessly.

• Social Integration

Social media features play a pivotal role in enhancing the OTT streaming experience. Users should have the option to share their opinions and feedback on social platforms, fostering a sense of community and engagement.

• Cross-Platform Compatibility

Ensure that your OTT app is compatible with a wide range of devices, including smartphones, tablets, smart TVs, streaming devices, and computers.

• Push Notifications

This feature is essential for keeping users informed about new content additions, subscription details, and other pertinent information. Leveraging AI for content recommendations further enriches the user engagement experience.

• In-App Purchases

A monetization cornerstone, in-app purchases allow users to buy exclusive content or access additional features.

• Payment Gateway Integration

The integration of a robust payment gateway is a critical aspect of OTT platform development solutions. It serves as the final step in user transactions, particularly for premium plans or content subscriptions, ensuring a secure and seamless payment process.

• Offline Viewing

Allow users to download videos for offline viewing. This is particularly useful for scenarios with limited or no internet connectivity.

Also check: Harness The Power of AI in Mobile App Development

How Can You Monetize Your OTT App?

Understanding how businesses generate revenue through app development is crucial. Top OTT companies typically adopt three primary monetization models for their video streaming services:

Step-by-step Process for OTT App Development

Developing an OTT app is a complex task that needs meticulous planning and implementation. To assist you in this venture, here is a step to be followed for OTT platform development.

Step 1: Niche Determination

Define the specialty of your OTT services platform as the initial step in its launch. Identify your target audience and the specific content you intend to deliver, be it movies, TV series, documentaries, sports, news, music, or children’s programming. The nature of the content you curate will be dictated by your chosen niche.

Step 2: Market Research

Conduct thorough market research following the identification of your niche. Analyze competitors’ strengths and weaknesses, and scrutinize their business practices, subscription models, content selections, and user interfaces. This research will unveil market gaps that your platform can effectively address.

Step 3: Content Management

Formulate a content strategy based on the insights gleaned from market and niche analysis. Determine formats, release frequencies, and the type of content to be created or acquired. Identify potential partners for content production and distribution to execute your content plan effectively.

Step 4: Technology Stack Selection

Begin by choosing the technology stack for your OTT application. This involves critical decisions on server infrastructure, streaming protocols, and security measures. If you lack expertise, consider hiring experienced OTT app development company. Prioritize informed decision-making to optimize cost-effectiveness.

Step 5: App Development

With a comprehensive content plan in place, proceed to custom OTT app development. Define the technological stack required for seamless user experience, scalability, and flexibility. Consider the possibility of hiring a team of developers and designers to facilitate platform development.

Step 6: App Launch

Launch your platform with a substantial content repository. Generate buzz through marketing campaigns across various channels, including social media and email. Attract early adopters with enticing subscription packages and incentives. Continuously market your platform to expand its user base.

Step 7: Monitoring and Optimization

Post-launch, closely monitor user engagement, behavior, and feedback. Leverage this information to enhance the user experience, refine content selection, and optimize subscription options. Prioritize innovation to stay ahead of competitors and ensure customer retention. Regularly refine your platform to meet evolving user expectations.

What is the Cost of Developing an OTT Platform?

Determining the cost to build an OTT app similar to Netflix, Hulu, or Hotstar, depends on several key factors. Some of them are:

• UI/UX design
• App features
• App complexity
• App platforms (Android, iOS, or both)
• The geographical location of the mobile app development company you choose.

Here’s a breakdown of estimated costs based on different types of OTT platforms:

• Netflix-like platform development cost: $40,000 – $60,000
• Amazon Prime video-like platform cost: $30,000 – $50,000
• Hulu-like video streaming platform cost: $25,000 – $50,000
• Hotstar-like video streaming platform cost Range: $20,000 – $40,000
• Apple TV-like platform development cost: $20,000 – $40,000

Considering these factors, a ballpark estimate for OTT video streaming app development typically falls within the range of $25,000 to $60,000 or more. It’s important to note that this is a rough approximation, and the actual cost may vary based on specific project requirements and additional features. For a more accurate assessment tailored to your needs, connect with a reputed OTT app development company.

Wrapping up

Investing in an OTT app for your business is not only an astute move to follow the trending technology but also an investment toward achieving robust revenue. If you’re looking to tap into the boundless potential of the OTT industry, XongoLab is your trusted partner for developing cutting-edge OTT platforms that captivate audiences and leave a lasting impression.

The future of entertainment lies in the boundless possibilities of OTT applications. With our expertise and unwavering dedication, we are here to help you unlock the potential of OTT app development and revolutionize the way your audience consumes entertainment.

About: Jignesh Nakrani

Jignesh Nakrani is the Co-Founder and Operations Director at XongoLab Technologies LLP. He channels his interests into researching cutting-edge technology and the latest trends in business to create content related to the web and mobile to help startups & entrepreneurs scale their businesses and grow.

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