With the rapid growth of streaming services and mobile devices, the demand for high-quality and engaging OTT apps has increased. From Netflix and Hulu to Disney+ and Amazon Prime, OTT apps have revolutionized how we consume video content, and the market is only getting bigger.
With over 1 billion streaming video subscribers worldwide, OTT apps’ global revenue is projected to reach $223 billion by 2026. No wonder more and more businesses are looking to develop their own over-the-top (OTT) apps.
More than 68% of households in the United States have daily access to OTT services, with a minimum of 100 minutes of daily user engagement. That means users are hungry for content, and with the right OTT platform, you can leverage this opportunity and deliver content in an engaging and convenient manner.
But with so much competition, how to create an OTT app that stands out? Read our guide, packed with valuable insights and strategies to help you navigate the complex world of OTT software development.
With step-by-step guidance and real-world examples, this guide is the ultimate resource for anyone looking to tap into the massive potential of the streaming industry.
Let’s get started and build an OTT app that changes the game!
Table of Contents
- What are OTT Apps?
- Why Do People Prefer OTT Apps to Conventional Platforms?
- Why Should You Invest in OTT App Development?
- What are the Advantages of the OTT Applications?
- What are the Different Types of OTT Apps?
- Businesses Leveraging From OTT App Development
- Must-Have Features To Include in OTT App Development
- How to Create OTT App? Step-By-Step Process
- How do OTT Platforms Make Money? (Monetization Model)
- How Much Does OTT App Development Cost?
- How Can SparxIT Help You With OTT App Development?
- Frequently Asked Questions
What are OTT Apps?
OTT stands for over-the-top apps that deliver video, audio, and other media content over the internet, bypassing traditional cable, broadcast, and satellite TV services.
OTT applications allow users to access streaming services on various internet-connected devices, such as smartphones, tablets, smart TVs, and gaming consoles.
With the rise of mobile and internet-connected devices, OTT app ideas have become an increasingly popular way for consumers to access and enjoy media content. Popular OTT apps include Netflix, Amazon Prime Video, XUMO, Sling, HBO, etc.
Why Do People Prefer OTT Apps to Conventional Platforms?
There are several reasons why people are increasingly turning to OTT apps over traditional TV platforms:
OTT apps offer users greater flexibility and control over what they watch and when. Unlike traditional TV, which relies on scheduled programming, OTT apps allow users to watch content on-demand and on their schedule.
2. Variety of content
OTT apps offer a more comprehensive range of content than traditional TV platforms. With a vast library of movies, TV shows, and original content, OTT apps cater to diverse interests and preferences.
With OTT apps, users can access content on multiple devices, from smartphones and tablets to smart TVs and gaming consoles. This makes it easy for users to watch their favorite shows and movies anytime, anywhere, without being tied to a specific location or device.
OTT apps can be more affordable than traditional TV platforms. They offer subscription-based pricing models that allow users to pay only for the content they want to watch. Additionally, users can cancel or change their subscriptions anytime, providing greater flexibility and control over their spending.
“Overall, OTT services offer users a more personalized, convenient, and affordable way to access and enjoy media content, making them an increasingly popular choice among consumers.”
Why Should You Invest in OTT App Development?
If you’re considering entering the OTT platform development market, it’s essential to understand the streaming industry’s current state and projected growth.
- By 2024, the global OTT app development market is expected to generate over $200 billion in revenues.
- The number of active OTT AVOD (Advertising Video On Demand) users is projected to reach 3.5 million by 2027.
- The number of active users across multiple OTT video download platforms is expected to reach 761 million by 2027.
- It’s also worth noting that a staggering 85% of US millennials subscribe to at least one OTT platform, indicating a strong demand for these services among young consumers.
These statistics demonstrate the significant potential of OTT app development, which is poised for continued growth in the years to come. Thus, taking the assistance of a reliable social media app development company to build an engaging OTT app is a promising option for business owners.
What are the Advantages of the OTT Applications?
Over-The-Top (OTT) applications’ advantages are not limited to users alone. OTT platform apps are game-changers for businesses and brands, offering several benefits that traditional TV and other mediums cannot match.
Let’s see some significant advantages of the app OTT for business leaders.
1. Consistent Branding Across Multiple Platforms
One of the OTT application’s most significant advantages is that it provides businesses with consistent branding across multiple platforms. With OTT software, brands can create a consistent look and feel across all devices, ensuring their messaging and branding remain the same regardless of the medium used.
This consistency helps to build brand recognition and loyalty, creating a solid connection with the audience.
2. Control Over Advertising Placement and Frequency
OTT development gives brands complete control over advertising placement and frequency. Brands can choose where and when their advertisements are shown, ensuring they reach their target audience.
Brands can also select the frequency of ads, avoiding over-saturation and ensuring that users are not bombarded with too many ads.
3. Increased User Engagement and Brand Loyalty
The best OTT apps allow for increased user engagement and brand loyalty. By offering personalized content recommendations and user-specific content, brands can ensure users remain engaged with their platform.
A leading app development company can provide social media integration, polls, and other interactive features, building stronger relationships between brands and users.
4. Actionable Insights for Performance Measurement and Content Refinement
Over-the-top apps provide brands with actionable insights for performance measurement and content refinement. Brands can analyze user data to understand which content is performing well and which is not, allowing them to refine their content and make it more engaging.
Brands can also track metrics such as user engagement, retention, and conversion rates, enabling them to make data-driven decisions and optimize performance.
5. Content Transmission for a Seamless User Experience
An OTT platform development company can offer content transmission for a seamless user experience. OTT platforms can adjust the video quality based on the user’s network speed, ensuring users have a smooth viewing experience regardless of their internet connection.
Most downloaded OTT apps also offer the ability to download content for offline viewing, allowing users to watch content at their convenience.
6. Real-Time Interaction through OTT Live-Streaming
OTT applications offer real-time interaction through live-streaming. Brands can use live-streaming to engage with their audience, answer questions, host Q&A sessions, and provide behind-the-scenes access to events.
Live streaming app development company offers a unique opportunity for brands to showcase new products or services and receive real-time feedback from their audience.
7. Multiple Monetization Models
An OTT development company offers multiple monetization models, allowing brands to choose the best method. Brands can decide from subscription-based, transaction-based, or ad-based models or a combination of these models.
This flexibility allows brands to generate revenue while providing value to their audience. Moreover, they can build all OTT platforms in one app to provide video content at one place.
What are the Different Types of OTT Apps?
Did you know that OTT app development is not limited to video streaming services? Several other OTT development alternatives, including-
c) VoIP (Voice Over Internet Protocol)
d) Messaging services
However, among these four types of OTT services, the Video OTT segment has emerged as the most popular, and a good reason. The market size for video streaming platforms is enormous, making it an attractive option for businesses looking to capture a massive audience.
Regarding video streaming app development, three main OTT app development services are available in the market. These include-
- Services-based OTT services
- OTT platforms for content and communication
- OTT platforms in the form of devices
It’s no secret that OTT platform development has made businesses the leaders in their respective OTT segments. As the market continues to evolve and expand, companies that invest in OTT app development will have a competitive advantage in the race to capture the attention and loyalty of consumers.
Businesses Leveraging From OTT App Development
Over-the-top (OTT) apps have become a popular platform for businesses to reach their target audience in today’s digital age.
With the help of an OTT app developer, enterprises can leverage this platform to provide customers with a more personalized and engaging experience.
In the growing demand for OTT content, businesses can use this medium to stay ahead of the competition and attract more customers.
1. Content Creators And Brand Marketers
OTT apps have become a go-to platform for content creators and brand marketers to showcase their content and engage with their audience.
By building OTT platform, content creators and marketers can have complete control over their content and distribution. It allows them to create and share their content more personalized and directly.
This way, they can reach their target audience, build a loyal following, and monetize their content.
2. Health And Wellness Practitioners
Health and wellness practitioners have also recognized the potential of custom OTT solutions to reach their clients and offer them personalized services.
They can provide personalized coaching, training, and nutrition plans. With this, they can connect with their clients remotely and guide them to achieve their health and wellness goals.
3. Enterprises And Corporate Businesses
Enterprises and corporate businesses also use the custom OTT platform by providing their employees and clients with personalized OTT software.
Companies and corporate businesses can offer various services, including training, onboarding, and customer support. They can even streamline operations, reduce costs, and improve efficiency.
4. Personal Trainers And Fitness Enthusiasts
Personal trainers and fitness enthusiasts also use OTT apps to reach out to their clients and offer them fitness services. They can provide different services, including virtual training sessions, workout plans, and nutrition advice.
This way, trainers, and fitness enthusiast can connect with their clients remotely and offer support and guidance to achieve their fitness goals.
5. Non-Profit Organizations And Charitable Institutions
Non-profit organizations and charitable institutions are also taking benefits from OTT apps to reach out to their supporters and raise awareness about their causes.
They can offer many services, including live streaming of events, video testimonials, and donation portals.
With this, non-profit organizations and charitable institutions can connect with their supporters, raise funds, and promote their cause to a broader audience.
6. School Tutors And University Trustees
School tutors and university trustees can provide their students with personalized learning experiences. They can offer many services, such as virtual classrooms, tutoring sessions, and study materials.
They can connect with their students remotely and guide them to achieve their academic goals.
7. Sports Professionals And Athletic Clubs
Sports professionals and athletic clubs may leverage OTT apps to reach fans. They can provide live streaming, replays, and behind-the-scenes content.
They can build a loyal following, engage with their fans, and monetize their content through sponsorships and advertisements.
Must-Have Features To Include in OTT App Development
Over-the-top (OTT) apps have become popular for people to access movies, TV shows, and other video content on their mobile devices. With the rise in popularity of these apps, it is crucial to develop OTT apps with features to offer the best user experience.
1. User Profile
Creating user profiles is vital to include in your OTT app. The user profile should be easy to access, and users should be able to edit their details, preferences, and settings.
2. Search Feature
The search feature is essential for OTT applications as users need to find their favorite shows or movies easily. This feature should be fast, accurate, and intuitive. It should offer advanced search options like sorting, filters, and suggestions.
3. Multilingual Content
Offering multilingual content is a great way to increase the reach of your OTT app. Users should be able to switch between languages easily, and the app should support many languages.
This feature allows users to save their favorite shows or movies for later viewing. Users should be able to create multiple watchlists and easily add or remove content from their lists.
5. Continue Watching
The continue-watching feature is a great way to keep users engaged and interested in the content. This feature allows users to resume playback from where they left off without searching for the content again.
6. Voice Search
It is a convenient feature that enables users to search for content using their voice. This feature is useful when users cannot type, such as when driving or multitasking.
7. Social Features
Social features such as sharing, commenting, and rating are essential for the best OTT apps as they help in increasing engagement and user retention. Users should be able to share their favorite content on social media, rate the review shows or movies, and comment.
8. Screen Mirroring
This feature enables users to stream content from their mobile devices to a larger screen like a TV. This feature is effective for users who want to watch content on a bigger screen.
9. In-App Purchases
Allow users to buy premium content or access additional features. The app should offer a seamless payment experience and support many payment options.
10. Payment Integration
This critical feature allows users to pay for premium content or subscriptions. The app should offer a secure payment experience.
Incorporating these features into your OTT app development will help you create a user-friendly and engaging app that stands out in the crowded OTT market.
By prioritizing user experience, your OTT app can attract and retain loyal users, resulting in a successful app.
How to Create OTT App? Step-By-Step Process
If you are considering creating an OTT app for your business, follow a step-by-step mobile app development process to ensure success. Here are some critical steps to guide you through the process:
1. Analyze Competitors and Market Trends
Before creating your OTT app, it is crucial to research your competitors and market trends. This will help you identify opportunities and challenges and guide your decision-making throughout development.
It’s essential to study and learn from the industry leaders who have paved the way in OTT app development, such as Amazon Web Services, Netflix, Hulu, Apple, and Facebook.
2. Select the Appropriate Type and Features
3. Choose a Reliable OTT App Development Company
Reliable and experienced OTT solutions companies are critical to ensure your app is built to your specifications and standards. Look for a company with a strong track record, positive reviews, and a portfolio demonstrating OTT app development expertise.
4. Select The Right Tech Stack For OTT App Development
It requires a range of technologies and tools to ensure the app performs optimally and delivers a great user experience. Here are some key tech stacks required for OTT app development:
|Backend||Node.JS, Express, Django, Flask, and Phoenix|
|Cloud-based infrastructure||Amazon Web Services (AWS), Microsoft Azure, and Google Cloud|
|Databases||MySQL, PostgreSQL, Cassandra, Oracle|
|Streaming Technology||Adaptive Bitrate Streaming (ABS) Technology|
|Payment Gateway Integration||Stripe, Braintree, and PayPal|
|Analytics and reporting||Google Analytics, Mixpanel, and Adobe Analytics.|
|Content delivery network (CDN)||Akamai, Cloudflare, and Amazon CloudFront|
|Video encoding and transcoding||FFmpeg, Handbrake, and Media Encoder.|
|Content management system (CMS)||Drupal, WordPress, and Django.|
5. Start with MVP (Minimum Viable Product)
To minimize risks and maximize ROI, start with an MVP, a minimum viable product with essential features. This will help you test the waters, receive user feedback, and determine whether your app idea is feasible before investing significant resources.
6. Follow Agile Development Methodology
It is a process of iterative and incremental software development that emphasizes flexibility and adaptability. This approach allows you to work in short sprints and respond quickly to changes in requirements and user feedback.
7. Testing and Deployment of OTT Platform Apps
After development, thorough testing is crucial to ensure your app works as intended and is bug-free. Ensure your OTT app complies with all relevant regulations, data privacy laws, and content guidelines. Once you are satisfied with the app’s quality, it’s time to deploy it to the app store or web.
How Do OTT Platforms Make Money? (Monetization Model)
The OTT industry has seen an array of business models adopted by various platforms to generate revenue. Here are the most popular ones:
1. AVOD (Advertising Video on Demand):
OTT platforms that use this business model offer free content to viewers while earning revenue through advertisements. Consumers encounter multiple ads while consuming content, and the platform earns by telecasting a brand’s ad.
- Examples- Tubi, Pluto TV, Xumo
2. SVOD (Subscription Video on Demand):
This model allows users to access a content library for a monthly or yearly subscription fee. Services like Netflix and Hulu are examples of SVOD platforms.
- Examples – Netflix, HBO, Apple TV+
3. TVOD (Transactional Video on Demand):
This model charges users on a pay-per-view basis, where they only pay for the content they want to watch.
- Examples – UFC, iTunes, CinemaNow
The hybrid business model in OTT app development combines the benefits of both SVOD and TVOD.
By offering users the option to pay a lower fee, they can access a broad range of content but must endure multiple advertisements throughout.
Alternatively, those purchasing premium subscriptions can enjoy an ad-free viewing experience.
- Examples: Amazon Prime Video, Disney+
|OTT Apps||Basic Plan||Premium Plan||Business Model|
Note: The subscription pricing plans mentioned above are exclusively for the USA.
How Much Does OTT App Development Cost?
The cost of developing a video streaming app like Netflix can vary greatly depending on factors such as its complexity, features, and functionality, the platforms it will be built for, and the development team’s hourly rate.
A simple OTT app with basic features and functionality may cost between $30,000 to $150,000 to develop. In contrast, a more complex app with advanced features such as live streaming, multiple user profiles, and social media integration may cost $150,000 or more.
The mobile app development cost of maintaining and updating the app after its initial launch should also be considered, as this will incur ongoing charges.
So, working with a trusted and experienced team is crucial to ensure your OTT app meets your requirements and exceeds expectations.
How Can SparxIT Help You With OTT App Development?
Are you looking to create OTT platform?
As a premier video streaming app development company, SparxIT specializes in helping businesses build cutting-edge applications using the latest technologies.
We maintain international standards to ensure that our clients receive high-quality IT solutions that are second to none.
Our team of experienced mobile app developers offers various OTT app development services like OTT app consulting, OTT UI/UX design, Custom OTT app development, etc.
- End-to-end app development
- Cross-platform development
- Custom features
- Ongoing support, and maintenance
Our expertise can bring your OTT app idea to life and help it stand out in a crowded market.
Contact us today for a free consultation and take the first step towards developing your OTT app.
Frequently Asked Questions
Q. 1 Why should I consider developing an OTT app for my business?
An OTT app can help you reach a wider audience and provide a more customized and engaging user experience. It also lets you monetize your content and generate revenue through subscriptions, advertising, and pay-per-view models.
Q. 2 What is the best VOD revenue model for OTT business?
The best VOD revenue model for your OTT business depends on your content and audience. Subscription-based, advertising-based, and transactional-based models (such as pay-per-view) are OTT businesses’ most common revenue models.
Q. 3 How long does it take to develop an OTT app?
The time it takes to develop an OTT app varies depending on its complexity and the team’s experience. A basic OTT app can take 2–4 months, while a more complex app can take 6–12 months or longer.
Q. 4 How much does it cost to develop an OTT app?
The cost of developing an OTT app depends on various factors, such as the platform, features, design, and team experience. A basic OTT app can cost around $30,000 to $150,000, while a more complex app can cost over $150,000.
Q. 5 What are some of the biggest challenges in OTT app development?
Some of the biggest challenges in OTT app development include platform fragmentation, content delivery, user experience, security, and compliance with regulations and standards.
Q. 6 Should I choose in-house app development or outsourcing the development?
It depends on your resources and expertise. You can develop an OTT app in-house with a skilled in-house team and the necessary resources. However, outsourcing can be more cost-effective and efficient if you don’t have the required resources or experience.
Q. 7 How do I market and promote my OTT app once it is developed and launched?
You can promote your OTT app through various channels, such as social media, email marketing, influencer marketing, paid to advertise, and public relations. You should also optimize your app store listing and leverage app store optimization (ASO) techniques to increase visibility and downloads.
Q. 8 What are some potential legal and regulatory issues to be aware of in OTT app development?
Some potential legal and regulatory issues include data privacy, intellectual property rights, content licensing. Moreover, you need to be aware of local and international regulatory compliance such as GDPR, COPPA, and DMCA. It’s essential to consult legal experts to ensure compliance and avoid legal issues.
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