Complete Guide to OTT Platform Development: Key Benefits & Steps

Want to take your video streaming business to the next level?

Then this is the perfect time to go for OTT platform development!

A well-built OTT platform can help you reach a bigger audience, grow your brand, and increase your earnings.

Revenue is expected to demonstrate an annual growth rate (CAGR 2025-2029) of 6.56%, leading to a projected market volume of US$443.29bn by 2029.

Source: Statista

But how can you create one? The best way is to work with an OTT application development company that can make the process smooth and professional.

In this blog, we will explain how to develop an OTT platform and app step by step, helping you build a successful streaming business. Let’s dive in!

What is OTT Platform Development?

OTT which stands for “Over the Top” is content delivered through the internet rather than traditional methods like satellite or cable. This means that OTT content is distributed outside of established distribution methods. Despite this, OTT streaming services work with traditional media, giving viewers access to a wider range of content.

The major benefit of OTT is its ability to allow access to content on different devices such as mobile phones, PCs, smart TVs, gaming consoles, and OTT set-top boxes, as long as there is an internet connection. Overall, OTT is a convenient and flexible option for viewers to access the content they love, significantly enhancing user experience.

The most popular OTT services are Netflix and Hulu. When linked to the internet, they allow users to broadcast their material. Another famous example of an OTT platform is YouTube.

Read more: What Is Over-the-Top (OTT)? OTT means & How to get started?

Users don’t need to pay for TV cable or satellite pay-TV when they use an OTT streaming service. They can also replace long-distance communication services.

Growth in the Global OTT Landscape

Read more: OTT Industry is Estimated to Reach USD 175 Billion by 2026

• According to market analysts, the global OTT development market is expected to reach the $175 billion mark by the end of 2026. Over 61 million US households stream content from an OTT platform daily
• Every day, People are spending at least 100 minutes on OTT apps and paying an average of $8.53/month/platform.

Benefits Of Investing in OTT Platform Development

OTT is a growing trend that can reach viewers worldwide. Therefore, marketers should use OTT apps to reach their target audience and enhance monetization. To do this, they should consider partnering with an OTT platform development company to integrate video streaming in their marketing plan. The below mentioned are some benefits of OTT development for your businesses. 

• It will Improve ad-based revenue
• Increase profit by consistently 
• Unlimited Customers & Accessibility
• Convenience

Industries Taking Power By Developing OTT Platform Development

• Marketers & Advertisers
• Content Creators
• Health & Wellness Advisories
• Personal Trainers & Coaches
• Corporate Businesses
• Educational Institutions
• Non-profit Organization

Key Factors Affecting OTT App Development Cost

The cost of building an OTT app can vary based on many factors. Knowing what affects the cost can help you plan your budget better. Let’s look at the key factors that impact OTT development cost.

1. Platform Choice

The type of platform you choose has a big effect on your budget:

• Native Apps (iOS and Android): Creating separate apps for iOS and Android gives better performance but costs more.
  
• Cross-Platform Apps: One app that works on both platforms is cheaper but may not work as smoothly.
  
• Web Version: Many OTT platforms also have a web version, which adds to the overall cost.

If you want your app available everywhere, expect your OTT app development cost to go up.

2. Core and Advanced Features

Features are the heart of any OTT app. More advanced features mean higher costs.

• Core Features: User profiles, search options, subscription plans (SVOD, AVOD), and basic content libraries are must-haves.
  
• Advanced Features: Features like live streaming, offline viewing, multi-device support, and AI recommendations add extra expenses.
  

Deciding what features to include will directly affect your OTT development cost.

3. User Interface (UI) and User Experience (UX)

A good design makes the app easy to use and keeps users happy:

• Basic Designs: Using simple templates is budget-friendly.
  
• Custom Designs: Unique and interactive designs cost more but offer a premium look.
  

A well-designed app may cost more but can lead to better user engagement.

4. Content Management System (CMS)

A CMS helps you organize and manage content. You can choose from:

• Ready-Made CMS: These are cheaper and quicker to set up.
  
• Custom CMS: A custom CMS is more expensive but offers greater flexibility.
  

If your platform has lots of content, a custom CMS might be worth the extra cost.

5. Backend Infrastructure

The backend is like the brain of your app, managing data and keeping things running:

• Simple Backend: Suitable for apps with fewer users and content.
  
• Complex Backend: Needed for large-scale apps with lots of users and videos.
  

A strong backend ensures smooth performance, but it increases the OTT app development cost.

6. Content Delivery Network (CDN) and Streaming Technology

To stream videos without buffering, you need a good CDN:

• Standard Streaming: Cheaper but with lower video quality.
  
• HD or 4K Streaming: Higher-quality streaming needs a stronger CDN, increasing costs.
  

Choosing a reliable CDN ensures users get a seamless streaming experience.

7. Security and Compliance

Security is important to protect your content and user data:

• Digital Rights Management (DRM): Prevents unauthorized sharing of your content.
  
• Payment Security: Secure payment systems follow strict rules like PCI-DSS, adding to your expenses.
  

Good security protects your business and builds user trust.

8. Maintenance and Updates

After launch, your app will need regular updates and fixes:

• Fixing bugs and making improvements.
  
• Adding new features.
  
• Keeping the app compatible with the latest devices.
  

While maintenance adds ongoing costs, it helps your app stay competitive and reliable.

5 Simple Steps to Build an OTT Platform

Step #1: Pick a Professional OTT Service Provider

First, to create your own VOD platform, you need to choose a professional video hosting solution. Using free video hosting sites like YouTube may save you money, but they won’t help build your brand in the long run. Also, these platforms have strict rules, and if you don’t follow them, your video may get demonetized.

In order to promote and monetize your VOD content and build your brand, it is essential to have a professional online video platform like Webnexs. Undertaking a grade OVP will include solutions such as white-label video real-time aspects, flexible bitrate streaming, mass transfer, cloud transcoding, DRM, and so forth.

Step #2: Plan Your Content

To clarify your video creation goals, consider which types of videos will best inform, entertain, or engage your audience in your specific niche.

Having a clear business plan is crucial for achieving success. As a result, your clients will know what to expect from your services.

Here are a few plans to

1. Whether your recordings say one is off-scenes, or will they be important for a series?

2. Whether they be short-structure or long-structure?

3. Will you make them, or will they be curated from everywhere?

4. Whether you should convey new recordings every day, week by week, or month to month?

5. Whether the accessibility of your recordings will be available to subscribers or require additional payment for certain content?

6. Will you cooperate with individuals, or would you say you are going to perform?

There are no correct responses to these inquiries. All things considered, you have full oversight over what you make. Also, any blend of replies to these inquiries might be a productive SVOD business.

For instance, Dive Gue makes bunches of independent recordings that have a place with various pieces of their jumping subspecialty.

Step #3: Create a Netflix Style Website

The ideal arrangement for a Netflix-style video business is a Netflix-style site, correct?

There are two courses you can take with this:

Use a video-on-request administration

Here at Webnexs we assist individuals with building and developing Netflix-style organizations. (More on that underneath.)

Do-it-yourself

You can sort out your own Netflix-style administration without any preparation.

We have created every instance of SVOD sites you’ve seen throughout this article using Webnex’s services. Also, we take pride in assisting countless people in building their businesses with our services.

We make it easy to create a Netflix-style website from scratch. Also,we provide all the tools you need to upload your videos, build your site, protect your content, and sell your videos online.

Step #4: Decide your income model

Once you have permission, make an income plan that follows the legal terms for using the content. Completing step 3 will help you decide which of the following income models to choose:

Subscription Video on Demand

Netflix, Amazon Prime, and Hulu follow this precise model. Additionally called SVOD(subscription video on demand), organizations, which follow this model, acquire through the descent every day, week by week, month to month, or yearly membership charges they take from the clients in lieu of comparing admittance to the administrations.

Read more: What Is SVOD? A Complete Guide To Subscription Video On Demand

Ad-Supported Video on Demand

This model requires an onboarding of the sponsors to your foundation. You have the choice of keeping your center video real-time feature free for clients while procuring from the Ad-distributors. In any case, think long and hard about picking this street. FYI, with the exception of YouTube, none of the Ad-Supported Video on-Demand administrations has established great connections yet.

Transactional Video on Demand

Transactional-based Video on Demand (TVOD) is a service where customers pay for specific videos they want to watch. It can be a good option if customers don’t want a monthly subscription. But if the content is good enough, people won’t mind paying a subscription fee. For Example, Google Play Movies and YouTube are TVOD-based businesses

Step #5: Start advertising

Once you have your niche, license, website, and custom OTT platform development ready, the next step is to get subscribers.

This step is more about planning your business and requires a good marketing team. However, we can suggest some ideas to help you find an audience for your new video-on-demand service.

Go social

Use social media to promote your platform accordingly. Then advertise your unique selling points (USPs) on Facebook, Twitter, Instagram, and consider using paid ads on these platforms.

Leverage Ads

If you have a marketing budget, traditional advertising can help you get an early advantage. Therefore advertising on TV and in newspapers can help spread the word faster.

Email promoting

Email is still the most cost-effective way to reach potential customers. Build an email list of your prospects and notify them when your videos are available.

OTT App Development Phases and Costs

Building an OTT app involves different steps, and each step adds to the total OTT app development cost. Knowing these steps can help you plan your budget better. Let’s break it down:

Discovery and Planning

This is the first step where you study the market, check out your competitors, and understand your audience. It helps you decide what your app should offer. The better you plan, the more you can save on your OTT development cost.

UI/UX Design and Prototyping

Designers create how your app will look and how people will use it. A simple design costs less, while custom and interactive designs will cost more but can attract more users.

Development

• Frontend Development: This is what users see and interact with on their screens.

• Backend Development: This part handles everything behind the scenes, like managing content and storing user data. More complex apps need stronger backend systems, increasing the OTT app development cost.

Quality Assurance and Testing

Before launching, the app is tested to find and fix bugs. This step makes sure your app works well on all devices. More testing means better performance but also adds to the cost.

Launch and Deployment

After testing, your app is uploaded to platforms like Google Play or the App Store. There may be fees for publishing on these platforms.

Post-Launch Maintenance

Once your app is live, it will need regular updates and bug fixes. You should set aside around 20% of your total budget for yearly maintenance.

Additional Costs to Consider

Apart from the main development phases, there are extra expenses you need to think about:

Content Licensing and Acquisition

 If you’re using movies, shows, or videos from other creators, you may need to pay for licenses. If you’re making your own content, production costs will apply.

Third-Party Integrations

Many apps use additional tools like payment gateways or analytics to track users. These services often come with monthly or yearly fees.

Marketing and Promotion

To get people to download your app, you’ll need to promote it. This can include social media ads, influencer marketing, or running campaigns on search engines. Advertising costs can add up but are necessary to attract users.

Planning for these extra costs will help you manage your budget and avoid surprises. By knowing what to expect, you can estimate your OTT app development cost more accurately and make smarter decisions.

The Most Important Features to Consider When Building an OTT Platform Development

These are some of the features OTT applications are quite popular among the general public. 

Registration, Search and Watch List

User registration is a basic requirement when developing a video service like Netflix. Your app users will be able to simply access your app if you include this feature in your video-streaming app. Another important feature is the ability for your customers to search for videos within the app. This functionality must be developed in such a manner that users of all generations may simply and quickly search for material. A watch list is a tool that allows users to save videos to view whenever and wherever they like. If you want to spend in video app development, you should include these features in order to develop a successful OTT app.

Screen Mirroring

Screen mirroring integration is a special feature that lets you show what’s on your screen to others. This feature is helpful when you want to watch something with your friends or family on a bigger screen. When making a video app like Netflix or Hulu, it’s important to have this feature to make it easier for people to watch videos on different devices. To create a popular OTT app, integrating screen mirroring is a must.

Real-time analytics

Real-time analytics are very important for OTT platform development. They help app managers see how well videos are doing and how many people are watching them right away. This helps them improve the videos and how they are shared, which can make more people watch and like them. Overall, real-time analytics are a great way to get more people interested in the app and the videos it offers.

Integration of Payment Gateways

Payment gateway integration is one of the most important aspects to consider when designing an SVoD app. This feature is essential to provide your app users with a smooth online payment platform in order to provide ease and comfort. Consumers may pay via digital wallets, debit/credit cards, and PayPal, among other options, thanks to several payment connections.

Read more: Build OTT Video Apps : The Ultimate OTT features

Notifications through Push

Push notifications have become very important for any video streaming app on mobile devices. It means you can get the latest updates without having to open the app all the time. So, when your favorite broadcaster starts streaming something new, you’ll get a notification on your phone. This helps you stay up-to-date and not miss anything important. App developers can also add a feature to schedule future broadcasts, which makes the app even better.

Geolocation Tracking

Having a geolocation feature in an OTT service is very useful as it lets users find broadcasts based on their current location. By using a map, users can easily select the broadcasts they want to watch. The software development team can mark live broadcasts in the user’s area on the map, which will be shown in blue. The inactive broadcasts can be displayed in red, but this can be customized. You can change the appearance of the markers on the map anytime you want.

Being a custom OTT platform development company, Our skilled team can create an OTT platform that works on TVs, mobiles, phones, and tablets using various technologies

Take a look at how we helped a Niche Online Audio and Video Subscription Platform service build their VOD app to increase the user experience & make accurate sales insights.

Challenges in OTT platform development:

Scalability Issues:

OTT platforms attracts more user and it is important to build the system which helps in managing the growing audience without slowing down.

To meet the strong demand, it is important to build a solid infrastructure and reliable cloud solutions that fit our growing user base.

Content Security and Protection:

One of the major challenges about the digital content is to protect them from the unauthorized access

Implementing security measures like Digital Rights Management(DRM) will ensure that the content is safe and protected from piracy and unauthorized access or theft.

Quality of Service Across Devices:

It is important to ensure consistent streaming service across various devices, such as smartphones, tablets, and smart TVs and it is difficult to maintain.

Users expect smooth playback experience and high-quality content, regardless of what device they used to watch.

Technological Advancements:

The OTT software is growing with new technology like artificial intelligence.

Staying ahead of these titles is most important to meet the needs of the customer expectations and stay competitive.

User Engagement and Retention:

Attracting users to the platform is the first step, but keeping them engaged in the same platform is a challenge.

Offering personalized or customized content, regular updates, and regular updates can make the user retain in the platform and build loyalty.

Cost-Saving Tips for OTT App Development

Developing an OTT app can be expensive, but there are simple ways to reduce the OTT app development cost. By making smart decisions, you can save money and still build a great app. Here are some tips to help you:

Start with an MVP

Build a Minimum Viable Product (MVP), which is a basic version of your app with only the most important features. This helps you test the app with users and make improvements later. It’s a budget-friendly way to control your OTT development cost.

Use Pre-Built Solutions

Instead of making every feature from scratch, you can use ready-made services for things like payments, user sign-ups, and tracking app performance. This saves both time and money.

Outsource Development

Hiring developers from other countries where costs are lower can be a smart move. Many companies provide good-quality services at affordable prices, helping you cut down your OTT app development cost.

Cloud-Based Infrastructure

Using platforms like AWS or Azure for storage and streaming means you don’t need to buy expensive servers. These services offer flexible pricing and grow with your app, making them a cost-effective choice.

Prioritize Features

Focus on adding only the most important features at first. You can always add advanced features later when your app grows. This way, you won’t overspend at the beginning.

By following these simple tips, you can save money while making sure your OTT app is still high-quality and enjoyable for users.

OTT Platform Development Cost

Time and cost to built an OTT video streaming platform like Netflix or Hulu based on the number of factors:

• The number of features which you include in the app.
• The number of apps that are needed. It can include Amazon OTT, Roku, etc.
• It is the time when you need to examine all the factors and discuss with over the top software experts and receive your app developed with all the features and live.

A mobile application development company can advise you in establishing all the key and most important qualities to your OTT video streaming platforms.

Future Of OTT Platform Development

OTT platforms have a bright future as users won’t go back to traditional entertainment methods. Mainly video streaming apps. However, there is still rests too much competition in the market.

For example, Netflix’s competitors, such as Disney, Amazon Prime, and HBO, also offer OTT video streaming but Netflix stands out for its high-quality content, fast video speed, HD, and reliable performance.

Read More : 5 Steps to Kickstart Your OTT Streaming Service

Conclusion

If you want to create a platform for mobile apps and need help building an OTT (over-the-top) app from the beginning, you can try Webnexs VOD, an experienced OTT platform development company, to get a complete solution. With this, you can create an OTT development that includes strategies to increase your profits.

Frequently Asked Questions