How Much Does OTT App Development Cost in 2024?

Get a competitive advantage with a step-by-step Guide for OTT App Development. Hire top OTT app developers to build a cost-efficient OTT app/platform.

OTT has completely overtaken traditional TV and changed the entire entertainment preferences of today’s audience. Now, you can access your favorite shows at your favorite time, ads-free.

Today, billions of users stream content online, raising the demand for high-quality and engaging OTT apps. In this highly competitive market, the challenge is clear, “How to build an OTT app that stands out and is cost-effective?”

Explore the intricacies of OTT app development with us and know the factors affecting OTT app development costs.

Connect with OnGraph for OTT App Development in 2024.

What is an OTT Platform?

An OTT (Over-the-Top) platform is a service that delivers video, audio, or any multimedia content over the Internet directly to users. It eliminates the traditional cable or satellite subscriptions to access the pool of data stored online.

You can easily stream your choice of content on your choice of devices, such as mobile phones, desktops, tablets, and others. Unlike traditional TV, OTT has a larger audience segment that improves content accessibility.

Some top OTT brands ruling the entertainment market are- Netflix, Disney+, Amazon Prime, Hulu, and others. These brands have completely transformed the meaning of entertainment.

As per Nielsen, in 2024, the streaming usage soared to 37.7% of TV.

This rising demand for video streaming platforms influences businesses to develop their OTT platforms or applications. To enter the OTT app development market, you must understand the reason for the growing demand.

Driving factors for this rise-

• Changing media and entertainment demand
• Evolving smart devices
• Increased subscription-services demand
• Demand for original content
• Demand for localized content in different languages.

In this era of consistently consuming good content online, the market has no sign of slowing down.

Why Do People Choose OTT Platforms over Traditional Platforms?

OTT is far more effective than traditional platforms, affecting people’s preferences over time. With OTT-

• You can watch your favorite show anytime, breaking rigid TV schedules.
• You will get personalized content recommendations as per your preferences with AI/ML algorithms working in the background.
• You will get flexible pricing models where you can select a plan that aligns with your content preferences and budget.
• Another reason for OTT platforms is their original content which improves the subscription rate.
• You will get early access to newly released movies.

It has not only changed the entertainment perspective for users but also helped businesses tap into the global market, reaching a wider audience globally.

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Reasons to invest in OTT App Development in 2024- Key Statistics

In this era, where streaming has become the epitome of entertainment, investing in OTT app development and services shows a profitable opportunity for business.

• About 34.97% of users watch OTT content several times daily, showing how OTT services are part of everyday life.
• By 2027, around 3.5 million people will be using OTT AVOD services.
• 85% of US people have subscribed to at least one OTT platform, showing immense popularity.

Thus, businesses are investing in OTT app development.

Business Benefits of Investing in OTT App Development

• Global Audience Reach: Connect with audiences worldwide effortlessly.
• Enhanced Brand Visibility: it helps businesses represent brands and content globally for increased recognition.
• Improved Customer Engagement: it allows businesses to incorporate advanced features and personalized content recommendations to boost engagement and satisfaction.
• Diversified Revenue Streams: Monetize digital content through various subscription models and pay-per-view for additional income.
• Data-Driven Insights: businesses get valuable customer behavior insights for better decisions and tailor content strategically.
• Cost-Effective Distribution: Reduce distribution costs by bypassing traditional methods like satellite or cable networks, enabling scalability and adaptation to changing preferences without hefty initial investments.

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Types of OTT Platforms

OTT platforms do not only include video streaming but go beyond that. You can also consider other dynamic OTT alternatives to expand your niche.

• Video streaming- Amazon Prime, Netflix, etc.
• Audio streaming- Spotify, Apple Music, etc.
• VoIP (Voice Over Internet Protocol)- Zoom, Skype, etc.
• Messaging services- WhatsApp, Telegram, etc.
• Photo editing and sharing apps- Instagram.
• Mobile games- Mall91

To start with video app streaming app development, you can consider various OTT app development categories.

• Service-based OTT platforms- you can tailor content as per the changing user preferences. For example- Airbnb, Uber, Robinhood.
• OTT platforms for content and communication- offer comprehensive content for effective communication. For example- Netflix, Hulu, and Skype.
• Device-based OTT platforms- include hardware devices for a better OTT experience, such as smart TVs, and streaming devices like Amazon Stick, Samsung TV, Apple TV, and others.

Must-have Features in Your OTT Platform

To stand out in the high-end competitive market of OTT app development, delivering a seamless user experience is more important than ever.

Building an OTT platform with essential features helps businesses attract and retain users globally. Check out these must-have features for your next OTT app development project.

• User profiles- users can register and create accounts easily, and personalize their details, and settings as per their preference and subscription plans.
• Multilingual support- to reach a global audience, ensure that your audience can access content in their native language with an easy switch option.
• Audio and video streaming- able to listen and watch media content.
• In-app purchases- access premium content or additional features using in-app purchases with secure payment gateways.
• Content recommendations- based on watching history and location, users must get content recommendations to improve their streaming.
• Social media integration- integrate the OTT app with different social media channels for sharing media links.
• Reminders- set reminders for upcoming events, shows, and movies, so users do not have to miss anything.
• Screen mirroring- lets users watch their shows on a larger screen with screen mirroring functionality.
• Voice search functionality- incorporating advanced search functionality using voice for effortless searching.

How To Build an On-Demand Video Streaming OTT App Platform? Step-by-step

OTT app development includes strategic planning and processes to include all the features for an efficient user experience.

Step 1- Define business goals

You must define your business goals and ask what content you want to offer your audience. Select your target audience and tailor the content based on their preferences for better engagement.

Then choose the right monetization model and technical requirements to provide seamless streaming quality and device compatibility. Define your budget and development timeline. To fast-track OTT app development, you must consider OnGraph’s on-demand OTT app development services.

Step 2- Copyright your content

To build a streaming service like Netflix, it is crucial to have engaging and original content. Decide what type of content you will offer, and look for possible copyrights, licenses, and other details to protect your content authenticity.

Connect with content creators and distributors to negotiate on content details, their protection, and legal compliance, to future-proof your OTT app development business. If you want to cater to a global audience, also check for international rights to stream your content and get it verified for any violation of human rights in any case.

Step 3- Develop and design MVP for your streaming platform

Now that you have decided on the content, the next step is to create a visual user interface to engage audiences across various devices. Hire top-notch OTT app development developers and designers for effective results.

You must ensure that your OTT app aligns with your business goals and vision. To streamline OTT app development, you must choose the right tech stack to include advanced functionalities and security.

Tech Stack for OTT App Development

Explore our diverse range of tools, technologies, and frameworks for developing OTT apps like Netflix.

Step 4- Deploy and market the OTT app

After developing an OTT app, test it rigorously for potential bugs and troubleshoot to ensure streamlined operation of the app. Now, your app is ready to be deployed. Choose a strategic launch approach to cater to the target audience and reach them correctly. Drive promotional activities to create awareness of your app, such as giving a free one-month subscription, and streaming the latest content as compared to other streaming apps.

Devise robust marketing strategies, drive social media campaigns, and partner with strong brands for better reach.

Step 5- Continuous maintenance and updates

You must update your content regularly to stay in the streaming OTT app market. You must offer new content to keep your audience engaged. In the case of video streaming OTT apps, dynamic content is the key to success.

You can ask for user feedback and reviews to check how your original content is doing and what can you do to improve it. Prioritize continuous content updates to improve user experience.

Monetize Your OTT Platforms- Choose a Strategy

The goal of developing and deploying an OTT app is to generate revenue. But the question is what strategy you must choose to drive generous revenue from our online content offerings.

Different OTT business models suit different user preferences to ensure profit and sustainability within this evolving entertainment market.

Below are some monetization strategies for your OTT app development.

1. Subscription Video On Demand (SVOD)

This commonly used monetization strategy allows users to pay a recurring fee to renew their subscription plan every month or year.

Some known brands like Netflix, Amazon Prime, Disney+, and others have leveraged SVOD to generate a steady income.

2. Ad-Supported Video On Demand (AVOD)

It allows users to access the content for free but deal with annoying frequent ads during playback.

A common example is Youtube which generates its revenue from the AVOD approach through ad impressions and clicks. People mostly buy the premium versions to enjoy ad-free entertainment and media content.

3. Transactional Video On Demand (TVOD)

This model allows users to pay on a one-time basis when they rent or buy their specific favorite shows or movies, or any premium content. It eliminates the need to buy monthly or yearly subscriptions to access the content.

A popular example is Amazon Prime Video and iTunes. It suits well for occasional customers without having to buy a subscription plan. It results in generating immediate revenue while offering flexible content for users.

4. Multichannel Video Programming Distribution (MVPD)

It is similar to traditional TV subscriptions like TataSky. It allows users to access a selected group of channels with a monthly fee. Users can access live channels with an internet connection.

5. Hybrid Model

A hybrid model means generating revenue by implementing multiple monetization strategies together. It is beneficial as it caters to users with different streaming expectations. It improves revenue generation while catering to different audience segments.

6. Other Monetization Strategies

Below are some other beneficial revenue generation strategies to include.

• Freemium Model: offers free and premium content but charges for exclusive features or content.
• In-App Purchases: charges for extra features, content, or virtual items for an enhanced experience.
• Pay-Per-View (PPV) Events: charges users a one-time fee to access live events or content.
• Content Licensing: Purchase or lease rights to third-party content.

How Much Does It Cost To Build On-Demand/Custom OTT App Like Netflix?

The cost of OTT app development may vary, depending on several factors, like app functionality, features, app complexity, user interface, development and designer cost, location, cost of tools and technologies used, and others.

To help you get a general idea, we are breaking down the cost of developing an MVP and a fully functioning OTT app.

The cost may vary depending on other factors like licensing, ongoing support, content updation, and incorporating the latest trends.

Factors Affecting OTT App Development Cost

Below are some key factors that can significantly affect the OTT App development cost. You must consider the following-

• App functionality and complexity
• Type of OTT platform (subscription-based, advertising-based, custom OTT platform, etc).
• Type of platform (mobile, web, or cross-platform)
• Content inventory size (refers to cloud storage)
• licensing and Acquisition
• CDN and Technology stack
• Regulation and compliance (data encryption, digital rights management, content rating and filtering, privacy, and more).
• Developer’s location and team size

Hire top OTT App Developers with a leading OTT app development company-OnGraph.

OTT App Development Trends in 2024

To stay ahead of your competitors, you must include features and trends ruling the market. Below are some trends to leverage in your OTT app development.

• Interactive content
• Personalization
• Enhanced security measures
• The rise of niche platforms
• Advancements in smart TVs

With the advancement in AI and ML-like technologies, OTT app development is raising the standards of the media and entertainment market.

Connect with a skilled OTT app development company to scale your business quickly.

How can OnGraph Help with Cost-efficient OTT App Development?

Planning to launch an OTT platform like Netflix?

Connect with OnGraph for top-notch video streaming app development leveraging the latest technologies. We highly focus on quality, ensuring our clients receive exceptional user experience.

We offer diverse OTT app development services, including-

• Comprehensive OTT app development
• Cross-platform development
• white-label/On-demand/Readymade OTT solutions
• Tailored features
• Cost-effective development
• Faster time-to-market
• Ongoing support and maintenance

Refer to our case study, and see how we create a regional OTT platform for a global brand. Connect with our experts to know more in detail.