OTT App Development: Benefits, Features, Process, and Cost
OTT is one of the latest abbreviations that most people have known lately. It has completely transformed how we consume content.
People worldwide have become dependent on OTT to watch content anywhere and anytime with just the internet. Earlier, people used to watch content on TV. Later, they shifted to watching content on YouTube. Now, OTT has become a go-to choice of over 70% of users in the USA.
Leading media and entertainment companies worldwide have understood the importance of OTT and started launching OTT apps like ESPN, Prime Video, etc. Moreover, the demand for OTT app development is increasing year on year.
If you have decided to develop an OTT application, you are at the right place.
Here, we will first walk you through the basics of OTT apps. Then, we provide you with a streamlined process for OTT app development.
Let us look at all of these things in detail.
What are OTT Apps?
OTT stands for over the top. It is a platform that allows you to access content with the help of the internet; without any need for a satellite or traditional cable connection. Some of the popular OTT apps in the market, such as Netflix, Hulu, etc., allow users to access content on smartphone, desktop, laptop, or television using the internet.
If you are still in doubt about whether OTT app development is reliable or not, here we will walk you through some reasons to invest in OTT apps.
Why Invest in OTT App Development?
Here are the most crucial reasons you should consider investing in OTT app development.
1. OTT Platform Will Grow Progressively
Over the years, the overall consumption of videos has been increasing like never before. People worldwide now love to watch videos on their phones whenever they get free. According to the latest statistics, YouTube has more than 1.7 billion unique monthly visitors.
It indicates that people love to consume something enriching online.
Moreover, OTT applications have become yet another source of consuming content among users worldwide. Some of the most popular OTT platforms include Netflix, Hulu, Prime Video, HBO Max, etc. It means, people love enjoying content from different apps as per their need.
As per magnetglobal, people on an average are currently spending 100 mins on OTT apps everyday and pay an average of $8.53 per month for every service.
By creating a new OTT platform with OTT app development, you can grab the attention of users and then provide content that satisfies their needs.
2. Generate High Revenue
In the last few years, OTT apps have been generating massive revenue. In the pandemic, many users worldwide started consuming a lot of content from the OTT apps. Hence, these apps have obtained tremendous growth in user base and revenue.
According to Statista, the OTT video segment is anticipated to cross $281.70 billion in 2021. The revenue will grow at a compound annual growth rate of 11.06% between 2022 to 2026 and reach $427.80 billion in 2026.
By developing an OTT app, you have an excellent opportunity to earn revenue by implementing different methods like ads, subscription, etc. The above statistics indicate that OTT apps would allow you to generate good revenue in the long run.
Ready to enter into the OTT industry?
We recommend you to start with an MVP as it is quick to develop
& cost-effective. Then, convert it into a fully-functional app.
Who Can Take Benefit of OTT App Development?
Here are some of the people who can take massive advantage by building an OTT application:
- Educational Institutes
- Personal Trainers
- Corporate Businesses
- Health & Fitness Coaches
- Non-Profit Organizations
- Content Creators and more
Primary Features of OTT Applications
There are many features present in OTT applications. Here, we have curated some of the key features which you should include in your OTT application.
1. Sign Up & Sign In
A user should be able to create an account using an email or phone number. You can also allow users to sign up using third-party platforms like Google or Facebook. Further, users can store essential details in their profiles and customize them accordingly.
2. Smart Search
It is a necessary feature in an OTT application. With this feature, users can search for different types of content in the search. In order to increase engagement, you can integrate analytics and provide accurate results and recommendations.
3. Multilingual Content
If you want to reach out to users worldwide, it is necessary to provide content in multiple languages. You can achieve this by delivering content with various subtitles and audio tracks.
4. Payment Integration
Users like to carry out payments using different methods. You should integrate a secure & effective payment gateway to allow users to pay via credit/debit card, wallet, etc.
5. Push Notifications
Push notifications are really crucial in an OTT streaming app. It is necessary to alert users about any new season, subscription renewal, etc.
It is yet another necessary feature of an OTT video streaming application. This feature would enable users to add series, movies, etc., that they want to watch later.
Moreover, you can provide notifications to the users to watch a specific content after a certain time.
To enhance engagement on your OTT application, you should allow users to watch content on other compatible devices along with their smartphones. In short, you should give users an option to cast content on desktops, televisions, etc.
8. Content Categorization
Proper categorization of all the content based on the genre and potential audience allows users to discover content efficiently.
Do You Know?
Even if you have a low budget, you can build an OTT app with essential features, obtain feedback from real users and validate it.
5 Steps to Develop an OTT Application
There are a lot of things involved in making an OTT application. To make your task easy, we have a streamlined process for developing an OTT application.
So, let’s start.
1. Choose a Niche
OTT app development is a broad concept and that’s why it is essential to choose a niche. By defining your potential audience, you would have more clarity about the app and offer more value to the users.
You should find answers to some essential questions to find a niche.
- Which type of content do you want to provide to users?
- What is the age and location of users?
- Which genre is popular in the region? and more.
By finding answers, you can decide on a niche and target audience. Besides this, you can also define a USP (unique selling proposition) to reach a wider audience.
2. Create a Content Inventory
Content is the most essential part of your OTT streaming application.
You should define a content inventory considering the niche. In other words, you should make a list of all the contents that you want to stream before launching your app. You should ensure that the content is fresh, unique, and relevant to increase engagement in your OTT App.
3. Choose a Suitable Business Model
There are four different types of business models that you can consider for your OTT streaming application. Let us look at them in detail.
SVOD (Subscription Video on Demand)
Users have to pay a specific amount of fee monthly/ quarterly or annually in exchange for accessing the entire content library. Some well-known apps following the SVOD model are Netflix, Amazon Prime, and Disney Plus.
TVOD (Transactional Video on Demand)
It works as a pay-per-view model. Here, users can log in to the app for free. However, users have to pay for watching and downloading content on the app. One of the popular apps using the TVOD model is Apple’s iTunes.
AVOD (Ad-Supported Video on Demand)
It is one of the best models for a platform having a massive viewership. Users can access most of the content for free by viewing some ads. One of the leading apps following AVOD is Tubi.
It is a combination of all the above three models. If you want to cater to the needs of different segments of users, you can consider this model. Some users like to access the whole library, some free content, and some want to pay for content they watch.
Considering your budget and the users you want to target, you can combine any of the models for creating your OTT application.
4. Choose a Tech Stack
There are many OTT platform app development technologies and tools available in the market.
The selection of a technology stack will depend on the idea and what you want to achieve.
You can reach out to an OTT app development company. They will understand your idea and suggest you a suitable technology stack.
Here is the standard technology stack used to create an app like Netflix. So, let us check:
|Database||MongoDB, Oracle, Postgres, and SQL|
|Third-Party APIs||AWS, Web RTC, Socket.io|
|Libraries and Frameworks||Flutter, Laravel, NodeJS|
|DevOps tools||GitHub, Git|
5. Create a Custom OTT Application
It is time to create a OTT streaming application from scratch. There are a lot of things required to build a modern and unique OTT application.
You cannot make an OTT application with just the help of a single person. You need to hire a highly skilled team of OTT app developers. They can understand your needs and deliver a suitable OTT application.
How Much Does it Cost to Develop a OTT Application?
There is no fixed cost for developing an OTT application. The cost of an OTT application depends on various things as follows:
- Features & functionalities of the app
- App development company location & experience
- A platform for which you want to launch your app
- The technology stack of your OTT app
- Total hours required to build an app
Generally, the OTT app development cost would be around $20,000 to $40,000. Further, the cost will vary based on the business requirements and the budget.
Depending on your budget and future goals of your business, you can build an OTT application. To know how the estimated cost of an OTT app is calculated, refer to this guide on app development cost.
OTT applications are famous worldwide. People rely on different OTT apps to watch different kinds of content. Moreover, the craze for OTT apps will increase year on year.
We hope that you have understood all the things about how to build an OTT platform. If you want to develop an OTT application, don’t hesitate to reach out to us.
Guru TechnoLabs is an award-winning mobile app development company. We have developed mobile apps for a vast number of industries across the globe. Hence, we can brainstorm your concept well and provide you with a modern OTT application.