How to Start a Subscription Streaming Service Like Netflix? [FROM $0-$1M]

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Netflix has come a long way from Red Envelope DVD company to the most popular streaming service. With a recurrent subscription, anyone can access movies, TV shows, and even live TV at their convenience. But what makes the subscription streaming service prosper?

People’s willingness to ditch cable TV for on-demand accessibility to video content is the real reason. In fact, a Report from eMarketer predicts that there will be 80.7 million cord-cutting households in the US in 2026. As the churn rate grows, people will start exploring subscription streaming services as alternatives.

This is the reason why now is the perfect time to create your own streaming service.

In this blog, we’ll walk you through the process of launching your very own streaming service, break down its immediate benefits, and discuss the cost it incurs. 

Let’s get started on your journey to build a streaming service.

What is a Subscription streaming service?

A subscription streaming service is an online platform that gives access to a video library for a recurring subscription fee (monthly, quarterly, or annually). Instead of providing one-time access to the content library, like a pay-per-view service, the subscription offers unlimited access, depending on the specific subscription plan.

Why Create a Subscription Streaming Service?

Creating a subscription streaming service presents a sustainable business model, greater control over the user experience, and an opportunity to enhance content quality. It also allows content owners to monetize their content, fostering a viable revenue stream.

However, it’s not feasible to stay competitive without a strong technical foundation, and by foundation, we mean features like adaptive bitrate streaming (ABR), intuitive search algorithm, and a global content delivery network (CDN). When launched correctly, the streaming service can be a rewarding experience, thriving amidst the streaming giants (like Netflix, Amazon Prime, etc.).

 

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How to Start a Streaming Service Like Netflix in 7 Easy Steps?

Launching a Netflix-like streaming service may seem like a daunting task, but with the right guidance and key strategies, it can be simple. Whether you want to create your own streaming service (from scratch) or update an existing streaming service, this comprehensive roadmap will help you throughout.

1. Identify Your Niche and Target Audience

You’re tired of exploring generic streaming services every day, and wonder, what if a subscription streaming service for this niche (for example, classic movies) exists? 

During this phase, you should identify your niche and continuously assess it. You have to ensure whether the niche has a potential audience; if they exist, will they prefer a standalone subscription streaming service? You have to find answers to such questions.

When it comes to a streaming service, your potential viewers’ viewing habits may change over time, and you need your business niche to adapt to that.

2. Choose Your Interface

In this phase, you need to decide on the style and interface design your streaming service will have. You can either:

* Customize a white-label solution, personalize the templates, and launch a streaming service. Or else,

* Hire dedicated OTT developers, choose your interface design, and build your streaming service. This works well, especially for content owners who want a unique platform for their target audience.

3. Build Your Video Library

A successful streaming service relies on a solid video library. Regardless of whether you already own a content library or are about to create one, you need to look at two things:

One, you can create original content. But it does require a lot of time, resources, and effort. On the other hand, as the name implies, you needn’t worry about time-specific licensing issues with original content, as it holds no barriers for use.

Two, you can source/license your content from production houses or third-party content companies. While implementing this, you need to be careful about the underlying hidden fees and copyright issues.

ProTip: Start small with content and consider what you can afford while starting your subscription streaming service. Remember, you can always scale up after.

4. Choose Your Monetization Model

Subscriptions are the cornerstone of generating recurring revenue for a streaming service. These subscriptions grant users access to the content library while adhering to the specific plan.

Apart from that, you can incorporate advertisements in between the video content. This way, you can invigorate brands to advertise their products/services while generating revenue. This works especially well if you’re launching your streaming service and want to give free access to content for some time.

5. Choose Your Platform Wisely

While starting your subscription streaming service, you may be tempted to launch across all platforms (mobile, web, and smart TV). Continue with this strategy at the peril of drying up your budget in a matter of weeks. 

Before deciding, explore where most of your target audience consumes content. This way, you can launch your streaming service on that specific platform first, and then launch on other platforms.

If the bulk of your target audience consumes content on a smart TV, try launching the smart TV app version of your streaming service.

6. Pick Your Infrastructure Setup

Your content library is ready, your platform choice is ready, and now you have to choose the infrastructure (On-premise or Cloud).

Get your choice wrong, and you will witness spiraling costs, buffering complaints, and a negative viewer experience. If you get it right, you can offer an impeccable streaming experience. 

While choosing, you need to consider some factors: bandwidth requirements, target demographics, and budget constraints.

7. Launch Your Streaming Service

After building your content library, choosing your platform, and picking the infra set-up, it’s time to launch your streaming service. You can use your streaming platform for multiple testing strategies: measure streaming metrics, playback quality, and load testing. 

Upon satisfying results, you can launch your streaming platform to a limited number of users (beta testing). Seek valuable insights and implement them to embellish the subscription streaming platform.

Benefits of Building Your Streaming Service with VPlayed

Now you have an idea about launching your own streaming service like Netflix; however, it is advisable to choose an ideal solution for your streaming business.

VPlayed helps content owners, production houses, media companies, and broadcasters to monetize their content with a slew of impeccable features and functionalities.

Let us break down the benefits of employing VPlayed to create your own streaming service in the growing market:

1. Endless Customization Options

Unlimited customization freedom means your streaming service doesn’t resonate with someone else’s vision. You can customize color schemes, layouts, user flows, and navigation to reflect your brand.

2. Lifetime Ownership

How about incorporating a platform with no recurring fees? That’s possible with VPlayed. With just a one-time license fee, you can own the streaming platform forever. While you own your streaming platform, you also enjoy complete control over the revenue.

3. Third-Party Integrations

VPlayed’s flexibility of supporting 200+ integrations means that you offer your viewers a connected streaming experience. Google Analytics for valuable insights, Mailchimp for targeted marketing campaigns, and Stripe for payment gateways. You can integrate more tools to deliver an impeccable streaming experience.

4. Global CDN

This enhances the responsiveness of your streaming service by serving user requests from the nearby video streaming server. It decentralizes the traffic from the host system, thereby reducing the latency issues.

Avoiding slow load times should be the top priority of your subscription streaming service, which VPlayed’s global CDN helps you realize with immediate effect.

5. Security Protocols

Your content and user information are the goldmine for your streaming service. Compromising on both aspects can be fatal for your streaming business.

VPlayed’s built-in digital rights management (DRM) forbids unauthorized copying of video content (like taking screenshots). With encryption, token security, domain restrictions, and SSL certification, VPlayed safeguards your video library to its maximum capacity!

6. Video CMS

The video CMS is the engine of your subscription streaming service. This is where you can manage, organize, and categorize video content. 

VPlayed’s video CMS helps you add metadata to your video assets, video sitemaps to improve discoverability, and add performance reports of content.

7. HLS Video Player

The video player is equipped with adaptive bitrate streaming (ABR) technology to optimize the playback, depending on the receiving device’s internet bandwidth. VPlayed’s HLS video player facilitates buffer-free streaming, enhancing the viewer experience.

8. Video Analytics

They assist in real-time monitoring of audience viewing trends, from analyzing previous data to geographic viewing patterns that answer business-related questions for upscaling growth. 

How Much Does It Cost to build a Streaming Service?

Starting a subscription streaming service can cost anywhere from $15,000 to over $100,000, or even more, depending on the functionality and sophistication. A basic platform with limited features might cost between $15,000 and $40,000, while a complex, feature-rich app could cost upwards of $100,000.

But an alternative and more affordable option is to use a white-label solution, where you can build your platform with pre-built software that can be customized to your needs.

A white-label solution costs between $50,000 to $75,000 and gives you flexibility in design, functionality and integrations at a fraction of the cost of developing from scratch.

Here are some factors that affect the cost:

1. Platform (Web, Mobile, Smart TV): Developing for multiple platforms will increase the cost. A single platform app will cost around $10,000 to $25,000, while a multi-platform service will cost more than $50,000. 
2. Features: Advanced features like personalized recommendations, offline viewing and multi-language support add to the cost.
3. Licensing and Content Acquisition: If you plan to stream licensed content, purchasing rights will cost between $1,000 to $50,000 or more depending on the content.
4. Storage and Bandwidth: Depending on the user volume, you will need sufficient cloud storage and bandwidth which will cost $5,000 to $15,000 annually.

All in all, using a customizable white-label solution gives you the balance of affordability and flexibility to launch a streaming service without the big cost of building from scratch. If you are thinking of White label solution then VPlayed can provide the platform to you to create a streaming service.

To Sum Up: 

This concludes our discussion on the quest to create a streaming service like Netflix, from identifying your target niche to building a content library, and choosing your monetization model to picking the right infrastructure setup.

Creating a subscription streaming service requires careful planning, from understanding your audience to implementing robust technology infrastructure. 

While the subscription streaming market is bustling with competition, there are still opportunities for services that offer unique value positions and cater to underserved audiences.

Whether you choose to launch a new subscription streaming service or upgrade an existing one, the key is to start with a clear vision and remain agile. 

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