Want to build a streaming app like Netflix? The timing couldn't be better. The global video streaming market will hit $125 billion by 2026.
The pandemic pushed this growth into overdrive. U.S. online video streaming viewers jumped by 30%. The global market's future looks even brighter, with projections showing $843 billion by 2027. These numbers make sense since people's preference for video content stands at 70% compared to other formats.
Netflix stands as a giant in this space with 118 million paid subscribers worldwide. More than half of U.S. homes use their service. The company's success shows in its numbers - $1.4 billion in net earnings during 2022's third quarter. But the subscription world has its challenges. Viewer fatigue has led to a 37% churn rate.
Building your own video streaming app needs smart planning and tech expertise. This piece takes you from market analysis to building strong infrastructure. We start by showing you today's booming digital world. Then you'll learn the key stages of development that include content strategy, ways to make money, and the technical backbone needed to launch your Netflix-style platform.
Step 1: Understand the Streaming App Market
The digital world of video streaming looks completely different now than it did a few years ago. Let's take a closer look at the current market dynamics before you start building your Netflix-like app. This knowledge will help you succeed.
Why streaming apps are booming
The numbers paint an exciting picture. The global video streaming market hit USD 674.25 billion in 2024. The market will reach USD 2,660.88 billion by 2032, growing at a compound annual rate of 18.5%.
Several factors stimulate this remarkable growth:
- Changing viewer habits: About 91.8% of internet users worldwide watch digital videos each week. All but one of these users watch videos weekly, while 55% interact with video content daily.
- Mobile consumption: People watch 75% of all videos on mobile devices. Apps have become their go-to choice.
- Time investment: Viewers spend about 17 hours each week watching online videos - that's over 2 hours every day.
North America leads this market with a 38.36% global share in 2024. The U.S. video streaming market will grow to an estimated USD 610.59 billion by 2032.
Netflix's growth and business model
Netflix shows us what streaming success looks like. This entertainment giant started as a simple DVD rental service in 1998. By 2016, Netflix had spread to 190 countries and offered programming in 21 languages.
Netflix now has over 301 million paid subscribers and earned USD 11.07 billion in revenue during Q2 2025. Their success comes from these business model strengths:
- Subscription tiers: Netflix attracts different customer segments with three plans (Basic, Standard, Premium).
- Content investment: The company puts huge resources into original programming to stand out from competitors.
- Evidence-based decisions: Netflix uses smart algorithms to analyze viewer priorities and patterns when making content decisions.
Their average revenue per user (ARPU) in the U.S. and Canada reached USD 17.30 in Q1 of 2024. This amount is much higher than competitors like Disney+ at USD 6.84.
Key trends in video consumption
The current consumption trends will shape your streaming app's success:
Content priorities keep changing. Social platforms now compete with traditional studios for entertainment time. These platforms optimize engagement through algorithms and targeted advertising.
Short-form content wins engagement. About 83% of marketers say videos under 1 minute perform best. This explains the success of TikTok, Instagram Reels, and YouTube Shorts.
Videos drive sales. About 87% of consumers say videos helped them decide to buy products or services. That's why 89% of businesses use video as a marketing tool.
Exclusive content attracts subscribers. Almost half (48.6%) of users choose streaming services that offer unique content. Another 45.7% value large and diverse video libraries.
Live streaming grows faster. The live streaming market will reach USD 184.00 billion by 2027. This creates opportunities for streaming app developers.
Step 2: Define Your Niche and Target Audience
The streaming market's insights show that viewers want specialized content that matches their interests. The era of one-size-fits-all streaming platforms is coming to an end.
Entertainment, fitness, education, and more
The digital world offers many viable niches beyond general entertainment:
- Entertainment and pop culture: Commands a CPM of USD 6.00 to USD 12.00 with massive audience potential
- Health and fitness: Attracts CPM rates of USD 7.00 to USD 15.00 from wellness brands
- Education and tutorials: Gets CPM rates between USD 4.00 to USD 10.00
- Personal finance: One of the most profitable YouTube niches with higher CPM rates
- Travel content: Offers CPM rates of USD 1.00 to USD 2.00 with sponsorship opportunities
Niche platforms grow 30-40% each year while mainstream services slow down to 10-15%. Netflix leads in revenue generation across age groups and genders. All the same, some of its most valuable shows target specific viewers, "Bridgerton" brought substantial revenue despite its 80% female audience.
How to choose a profitable niche
Your niche selection should factor in several key elements:
Audience demand: Topics like personal finance, gaming, or fitness get more views because people want this content.
Monetization potential: Finance, technology, and luxury lifestyle topics bring in higher-paying advertisers. To cite an instance, educational videos earn a CPM of about USD 9.89, showing how much advertisers value informative content.
Competition level: Gaming and music are huge markets, but you could succeed by targeting micro-niches with fewer competitors. You might focus on resistance band workouts in fitness or budget meal prep in food.
Passion and expertise: Your genuine interest in the niche will make your content better and last longer. Authentic content appeals to audiences and builds stronger communities.
Future growth potential: New trends matter. The live streaming market could reach USD 184.00 billion by 2027.
Understanding user behavior and priorities
User behavior analysis reveals key streaming patterns:
Netflix leads with 84% of all streaming users, followed by Amazon Prime at 46% and Hulu at 28%. Gen X (35-54 years) makes up 42% of streamers, while Millennials (18-34 years) account for 39%. Half the users have kids and 78% live in urban or suburban areas.
Disney+ makes most of its money from younger viewers, especially through Marvel and Star Wars content that appeals to male viewers. Peacock and Hulu stand out with their female audience revenue in Q2, thanks to Peacock's popular Bravo reality shows.
Viewers' content priorities include:
- Variety of TV shows (33%)
- Variety of movies (31%)
- Trendy new shows or movies (20%)
- Access to sports (7%)
- Access to news (6%)
Most users (62%) prefer a flat monthly fee over pay-per-view (9%).
Up-to-the-minute data analysis helps understand viewers better. Watch patterns, consumption trends, and viewer priorities shape content recommendations. Machine learning models study user engagement to suggest individual-specific content. This helps users avoid feeling overwhelmed by too many choices, a common streaming platform issue.
Don't compete with Netflix-dominate your own niche.
Discover untapped micro-niches and validate your app idea against real market data before you start building.
Step 3: Decide on Content Strategy and Licensing
Content is the foundation of any streaming app's success. After you identify your target audience, you need to make a vital decision about what content to give them and how to get it legally.
Create original content vs. license existing media
The streaming industry has two main ways to get content. Each path comes with its own benefits and challenges.
Original Content Benefits:
- Exclusivity: Your brand stands out with unique content that subscribers can't watch anywhere else
- Creative Control: You can shape content exactly how your audience wants it
- Long-term Value: You own the content forever without needing new licenses
- Brand Differentiation: Your streaming app can shine in a packed market
Licensed Content Benefits:
- Cost Efficiency: You spend less than making originals and avoid big upfront costs
- Broad Appeal: Well-known shows and movies quickly pull in more viewers
- Flexibility: You can change your content mix with different license lengths
- Predictable Costs: You know exactly what you'll spend ahead of time
Recent data tells an interesting story. Netflix's original content grew from 52% to 61% of its total catalog between late 2021 and early 2023. But here's the twist - among Netflix's top 25 shows, original content dropped to 24.9%. Only 7 of their most popular shows were Netflix originals.
How to get content licenses legally
Getting legal content licenses takes several steps:
- Identify content needs: Pick content that matches your audience's interests and platform's focus.
- Research licensing sources: Talk directly to rights holders, studios, distributors, or independent creators.
- Understand license types:
- Exclusive license: Your platform gets sole streaming rights
- Non-exclusive license: Multiple platforms can stream the same content
- Blanket license: One payment covers multiple titles
- Negotiate terms: Make sure your agreement spells out platform usage, regions, duration, and revenue splits.
- Secure legal clearance: Look for any third-party claims on the content.
Different content needs different licensing approaches. Music video licensing is simpler - organizations like ASCAP and BMI offer blanket licenses for thousands of titles. Movies and TV shows need more work because you'll have to negotiate with individual studios or rights holders.
Keep in mind that showing content in business settings or public areas needs public performance licenses to stay copyright compliant.
Working with distributors and studios
Content aggregators help developers connect with content sources. This is especially helpful for independent developers who want to create Netflix-like apps but don't have direct studio relationships.
These aggregators help you:
- Get your service onto major streaming platforms
- Handle technical details like encoding and formatting
- Organize content metadata properly
- Take care of distribution rights
- Sometimes boost your visibility with marketing
Distributor fees change based on several things. A title's popularity, cast, ratings, and release date all affect the price. You'll also pay more or less depending on exclusivity, territory coverage, and how long you want the license.
The industry landscape keeps shifting. Entertainment giants are going back to licensing models. Warner Bros. Discovery made waves by licensing HBO titles to Netflix. Right now, only 34.7% of the 1.1 million video titles U.S. audiences can watch are exclusive to one channel or source.
Smaller streaming apps have options too. VideoElephant offers millions of short-form content pieces ready for AVOD platforms or FAST channels. Companies like GreenLight help app developers connect with content rights holders.
Step 4: Choose a Monetization Model
Your streaming app's financial success depends on picking the right revenue model. The next big decision comes after you build your content strategy - figuring out how to make money.
Subscription-based model (SVOD)
Subscription Video on Demand (SVOD) is the life-blood of modern streaming. Users pay a recurring fee to access your entire content library.
The global SVOD market shows huge potential. It's projected to reach approximately USD 140.00 billion by 2027. North American growth leads the pack. US users spend around USD 265.00 yearly on SVOD services - about three times more than the global average.
SVOD comes with several perks:
- Steady income flow: Monthly subscriptions bring reliable revenue
- No ads to worry about: Users watch without interruptions
- Better customer value: Premium tier subscribers typically bring in USD 11.00 to USD 14.00 monthly
Top SVOD platforms offer different subscription levels. Netflix, Disney+ and HBO Max have various plans from USD 5.00 to USD 15.00 monthly.
Ad-supported model (AVOD)
Ad-supported Video on Demand (AVOD) lets viewers watch content free or at lower costs if they watch ads.
Global AVOD revenues for TV series and movies will grow from USD 39.00 billion in 2023 to USD 68.00 billion by 2029. The US currently holds 40% of global AVOD revenue. This share should drop to 31% by 2029 as other markets grow.
AVOD brings these advantages:
- Easy to start: Free access pulls in more viewers
- Big audience potential: Platforms like YouTube, Tubi, and Pluto TV attract massive crowds
- Smart ad delivery: Platforms make use of information to show relevant ads
Reality TV, family content, and timeless movies work best on AVOD platforms because people watch them repeatedly. Live sports now drives AVOD growth and brings in 10% of new streaming users worldwide.
Pay-per-view and hybrid options
Pay-per-view (PPV) or Transactional Video on Demand (TVOD) lets viewers buy specific content instead of full libraries.
Viewers pay per show, creating revenue chances through up-to-the-minute data analysis. TVOD works great for:
- New movie releases
- Live sports events
- Special concerts
- Exclusive shows outside regular subscriptions
Starting at USD 5.00 per video ticket helps viewers try your content without breaking the bank. Content rental for limited periods works well for one-time events too.
Hybrid monetization combines different revenue models as competition grows fiercer. This approach usually mixes:
- Subscription tiers (SVOD)
- Ad-supported options (AVOD)
- Pay-per-view content (TVOD)
Amazon Prime Video shows this approach perfectly. Members get free content plus options to rent or buy extra titles. Hulu runs two tiers: cheaper with ads or premium without them.
Hybrid models match different viewer preferences. Some viewers like free content with ads. Others happily pay to skip ads. Many fall somewhere in between. Multiple models give you more ways to grow your audience and boost profits.
Step 5: Plan the Core Features of Your App
Your streaming app's success depends on its features. Once you've figured out how to make money, you need to focus on the features that will make your app stand out.
User profiles and multi-device support
Individual profiles are the starting point for creating individual-specific experiences. Netflix lets you create up to 5 profiles on one account. Each profile keeps its own viewing history, recommendations, and watchlist. Family members love this setup because they can keep their viewing priorities separate.
Your app needs to work on multiple devices. Users switch between smartphones, tablets, smart TVs, and desktops and expect everything to work the same way. You'll need:
- Android/iOS applications
- Smart TV platforms (Roku, Apple TV)
- Web browsers
- Casting support
Users should be able to pause their show on one device and pick up right where they left off on another. This feature makes a huge difference in convenience.
Search, filters, and recommendations
Good search features help users find what they want in your growing content library. Voice search, genre filters, and mood-based sorting make navigation easy.
Recommendation algorithms keep users watching. These systems look at what people watch and suggest similar content. This boosts watch time and keeps viewers happy. Amazon Personalize is a great example - it uses smart algorithms that adapt to what users are watching right now.
Features like "Because you watched..." carousels and trending sections help users find new shows without feeling overwhelmed. Good content tagging with genre, mood, actors, and themes powers these discovery systems.
Offline viewing and parental controls
Offline viewing solves several common problems. Users can:
- Keep their data usage in check
- Watch shows in areas with poor internet
- Enjoy content while traveling
You'll need to add storage management options and show download progress. Setting expiration dates for downloads helps manage digital rights while keeping things smooth for users.
Parental controls keep kids safe from content they shouldn't see. Good controls include:
- Age-appropriate content filters
- Viewing limits based on ratings
- PIN-protected profiles that stop kids from switching accounts
Most big streaming platforms have these safety features. Tubi, for example, offers free, ad-supported content with built-in parental controls.
These core features will give your streaming app a solid foundation. Next, you'll need to build the technical infrastructure that can handle these features at scale.
Wondering how much a Netflix-style app costs?
Get a detailed cost breakdown based on essential features like offline viewing, multi-device support, and AI recommendations.
Step 6: Build the App Infrastructure
Your streaming application needs a solid technical architecture as its foundation. Now that you have mapped out the features, let's build the technological backbone that will power your Netflix-like streaming service.
Frontend and backend technologies
A streaming app needs both client-side and server-side technologies. Users see the frontend, while the backend powers everything behind the scenes. Here are some popular frontend choices:
- Swift for iOS and Kotlin/Java for Android native apps
- React Native or Flutter for cross-platform development
- JavaScript frameworks for web interfaces
The backend works as the powerhouse that handles requests, manages data, and runs core functions. You'll need:
- Server-side programming with Node.js, Django, or Ruby on Rails
- Database management using MongoDB, PostgreSQL, or Firebase
- API development to connect frontend and backend
Using CDNs and adaptive bitrate streaming
Content Delivery Networks (CDNs) place your video content on servers worldwide. This reduces latency and speeds up playback for viewers anywhere. The global network of edge servers caches videos, handles sudden traffic spikes, and delivers content quickly.
Adaptive bitrate streaming (ABR) adjusts video quality based on the viewer's connection speed automatically. ABR works by:
- Creating multiple versions of each video at different quality levels
- Breaking videos into small chunks (a few seconds each)
- Switching between quality levels as network conditions change
This technology stops buffering but keeps the highest possible quality. It starts with lower bitrate files and moves up or down the "quality ladder" as needed.
Security, scalability, and cloud hosting
You need encryption, digital rights management (DRM), and secure authentication to implement security. These protect your content from unauthorized access and keep user data safe.
Your user base will grow, so scalability becomes crucial. Cloud-based streaming systems from AWS, Google Cloud, or Microsoft Azure let you adjust resources as you need them. You won't face hardware limits and can handle traffic spikes easily.
Load balancing spreads streaming tasks across multiple servers. This stops any single server from getting overwhelmed and keeps performance strong even during peak times.
Mention of CISIN as a mobile app development partner
CISIN mobile app development company brings specialized expertise to streaming application development. Their team uses state-of-the-art technologies like Swift, Kotlin, React Native, Node.js, and cloud services from AWS and Google Cloud.
CISIN builds resilient infrastructure that handles high traffic volumes while maintaining performance, unlike less experienced developers. Their developers create applications that grow with your business to avoid getting pricey rebuilds later.
The infrastructure decisions you make now will shape your app's performance, user experience, and scalability for years ahead.
Step 7: Develop and Launch Your MVP
You've built your app's foundation, and now comes the exciting part - bringing your Netflix-like streaming service to life. The MVP (Minimum Viable Product) approach helps you test main features while keeping development costs low.
Everything in MVP features to include
The first version of your streaming app should deliver immediate value through core functionality. These simple features will make your MVP practical and easy to use:
- User authentication: Simple sign-up and login using email and password
- Video streaming: Simple content playback and broadcasting capabilities
- Content search: Users can find specific videos
- User profiles: Simple personalization options including profile photos
- Rating and comment system: Users can give feedback and rank content
Testing and quality assurance
Early bug fixes save money. Statistics show that fixing bugs during testing costs about 6.7 times less than fixing them after launch.
Quality testing for streaming apps needs to check:
- Video playback performance with different connection speeds
- Load times and server response
- User navigation patterns
- Ways users find content
Developers often use platforms like TestFlight for iOS or Google Play beta for Android to get early feedback. Beta testing helps find critical issues and gives a clear picture of user behavior before full deployment.
Deployment and app store launch
Your MVP should work perfectly before the official launch. Start with one platform (iOS or Android) to keep development simple.
App store submission needs:
- Compelling store descriptions that show your app's purpose
- High-quality screenshots of key features
- Proper age ratings (crucial for content-based apps)
- Privacy policy and terms of service
Track these key performance metrics after launch:
- Percentage of active users
- User engagement levels
- App store ratings
- Client acquisition costs
- Churn rate
Numbers tell only part of the story. User reviews offer valuable insights for future improvements. This combination of data helps reshape your MVP into a complete streaming platform.
Step 8: Collect Feedback and Optimize
Streaming apps need to evolve based on what users want. Your MVP launch marks the beginning of a vital feedback gathering phase that drives growth and refinement.
Ways to gather user feedback
Your streaming application needs in-app feedback tools to capture insights directly. Users can suggest features or report issues through open-ended feedback widgets without leaving the app. Response rates soar because users don't have to search through emails for survey links.
User satisfaction surveys follow the Customer Satisfaction Score (CSAT) structure. Users rate their experience on a scale of 1-5. Adding Net Promoter Score (NPS) surveys helps measure loyalty. This becomes significant since Android app retention dropped 10.3% on Day 30 compared to last year.
Tracking key metrics: CAC, CLV, retention
Your streaming app's true health shows in the CLV/CAC ratio. This ratio tells you if user acquisition costs pay off by dividing customer lifetime value by customer acquisition cost. A healthy business needs a ratio of 3 or higher.
Keep an eye on:
- Retention rates - A small 5% boost in monthly retention can grow your subscriber base by 40% over 24 months
- User engagement - Watch time, session duration, and completion rates matter
- Technical performance - Error rates and latency affect satisfaction directly
Improving features based on real usage
Similar feedback comments need grouping to track specific issues. Behavioral data connects to feedback, analytics show how users interact with confusing features.
Impact matters more than volume. A problem might affect only 5% of users but could frustrate your highest-value subscribers. User segments help identify issues with the biggest business impact.
Machine learning algorithms create tailored recommendations based on viewing behavior. Users feel less overwhelmed when faced with content options this way.
Users who gave feedback deserve updates about changes. This builds trust and they're more likely to give feedback again, completing the feedback loop.
Turn your streaming vision into reality today.
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Conclusion
Building a streaming app like Netflix might seem overwhelming at first. Breaking it down into smaller steps makes everything more manageable. This piece shows you how to study the streaming market, find your niche, plan content strategies, pick monetization models and set up strong technical infrastructure.
The streaming industry keeps growing rapidly. Market projections show it will reach USD 2,660.88 billion by 2032. Notwithstanding that, you need more than technical expertise. Your streaming app should connect with viewers through well-chosen content and customized experiences.
The right monetization model is a vital part of lasting success. Your revenue strategy should match user priorities - whether you choose subscription-based, ad-supported, pay-per-view, or a mixed approach to maximize profits.
User feedback becomes your guide for future growth after launching your MVP. Evidence-based improvements help your app adapt to viewer habits and new technology. Note that Netflix also started small and grew through steady improvements.
A partnership with experienced developers saves time and helps avoid mistakes that can get pricey. CISIN's software development company excels at creating expandable streaming solutions that grow with your business. Their knowledge helps turn your ideas into a polished, professional streaming platform.
Success in streaming needs patience, research and flexibility. Your streaming app can find its place in this competitive yet rewarding market if you focus on user experience. Time to start building!
