You know how big Video Streaming has become in today’s times. With most of the world observing Social Distancing, and Lockdowns, Video Streaming seems to be one of the only ways the world is coping with these Coronavirus Threat ridden days here.
Video Streaming is being instrumental in the propagation of Education, Information, E-commerce, Entertainment, Communication, and, perhaps, much more. In fact, it might not be incorrect to observe that when the entire world seems to be on ‘house arrest’, when regular life, and cities, altogether, are at a standstill, Video Streaming is one of the major things that are making the world – and the World Economy -- go round.
No wonder Video Streaming Apps have risen in importance, alongside their utility. Companies, enterprises, entrepreneurs, content creators, et al are looking at Video Streaming Apps as the safest, surest, and shortest routes to success, now.
The point is, there is rising competition in the market of Video Streaming Apps. If you want to enter this market, proceed higher up within it, or simply know more about it (you never know when the knowledge can come handy!), it would be helpful to find out how a Video Streaming App that can assure success in today’s competitive market can be created.
According to a report, the Video Streaming Market, at the global level, is expected to be worth over $ 125 billion by the next five years. This is the right time for getting to know Video Streaming Apps better.
Since no discussion on Video Streaming can seem complete without the reference to, or mention of Netflix, let us look at the story, as per reports, of the success of Netflix, first.
What is behind the popularity of Netflix?
Netflix, which had started as a DVD-by-mail company in the year 1997 has over 118 million paid subscribers, or even more, today. It was only in the early 2000s that Netflix had focused on Online Streaming Services. It was in 2008 that Netflix introduced the Streaming Service that we know now. At present, Netflix is famed for its movies, TV classics, and original shows. In 2019, the revenue of Netflix was estimated to be $ 17.63 billion.
The Business Model Netflix uses is Subscription Based. This helps it to scale up quick and steady, keeping pace with global expansion.
The Value Proposition of Netflix has the elements of
Netflix makes money through Subscriptions –
The main Business Segments of Netflix are –
Now that we have looked at what makes Netflix, Netflix, let us see how to create THAT Video Streaming App that can assure you success in the market of our times today.
Decide upon your Niche.
The most basic thing to decide upon is the kind of content that your Video Streaming App would be streaming to its users.
Education – Streaming Videos related to Education, or Pedagogy, or even How-To matters can be a very good idea – especially in today’s times when Online Classes, and Custom E-learning are gaining so much in prominence. If you want to attract a specific audience, you can always try some sub-niches, like Chocolate-making, Knitting, Communication, or Chess.
Entertainment – This segment can be extremely profitable, and can have an audience large enough to welcome a new provider of Video Streaming.
Fitness – Fitness related videos can be really helpful; especially now, when most of the people have no access to outdoors, gyms, and trainers, due to the Lockdowns. Moreover, various categories can be added under Fitness – like Diet, Yoga, Dance, and so on, to reach a greater number of people.
Decide upon your Content.
Decide upon your content.
Would you prefer to come up with your own Video Content?
Would you rather use Videos from the many Distributors that there are in the market?
In case you decide to work with other Video Distributors, you would be required to have a license for public performance. You can take care of that in either of the following ways:
Decide upon your Monetization Model.
If you want to go for an On-demand Video Service, there can be the following Monetization Methods to select from:
Subscription – This is the Monetization Model that is used by Netflix. You can use this strategy, too, if you plan to release fresh content on your platform on a regular basis. One-third of professional broadcasters use this model.
Pay-Per-View – This scheme of pricing is very simple to follow. A person has to pay for each video that s/he watches. This Monetization Model can be suitable for you if you want to broadcast conferences, concerts, and so on.
Advertising – You can have other companies pay you for running their ads on your platform.
Selecting the right Monetization Option can be extremely crucial for a VOD Platform, so a deep knowledge of the subject can be of use to you.
Know the Requirements of a Video Streaming App.
There are certain performance characteristics that you would be needed to balance.
Speed of Internet – The ability of a platform to stream On-demand Videos is affected by the speed of the Internet. The least Internet speed required for streaming standard definition films is above 2 megabits per second. However, a much higher speed of Internet is needed for broadcasting 3D, HD, or 4K.
You can consider Cloud Computing capabilities for operations such as
Connectivity of Network – Your Online Video Streaming platform would be likely to scale up, in the near future. You would be expected to keep provisions for that time. A Content Delivery Network would have to be integrated to your service. The CDN, which converts your Streaming application into a scalable system that is ready to handle traffic of considerable significance, broadcasts Videos before subscribers through a server network.
Content Security – Your content has to be protected from unauthorized access across customer devices. You can consider the following to make sure that the content of your Video Streaming Service is secure:
Payment Gateway – It is a good idea to present your subscribers with a number of payment options. Here are some that you can consider:
Decide Upon Your On-demand Streaming Service MVP.
At the stage of Development, you will need to think about setting timelines, deciding upon designs, clarifying non-functional, and functional requirements, and more. A seamless User Experience can be the key to success, therefore you would have to work towards that goal. An intuitive User Interface is also required, for users to
You need to consider the MVP features, and the in hours estimation.
User Feedback can be collected through
Knowing how the users find the features that you have presented before them is essential for you. What you can ask users next is which features they would like you to include in the On-demand Video Service. In this manner, you can get to know how real users are experiencing your service.
Critical Parameters You Need To Track.
There are some extremely important parameters that you need to measure.
CAC / Customer Acquisition Cost – This is to find out the cost that acquiring a new subscriber adds up to. How do you find this out?
The CAC is always better when it is low.
Rate Of Retention – This metric is there to evaluate the percentage of subscribers who are active vis a vis those subscribers who have not been using your service since a period of time.
You need to make sure that your Rate Of Retention is as high as you can keep it.
CLV / Customer Lifetime Value – This lets you know the amount of revenue you are making from repeat customers. This, in turn, gives you a clear idea of the quality of your product. If an average user can be retained by you for a year, the revenue you get from such users in a year is your CLV.
ROAS / Return On Advertising Spending – This shows how effective your Marketing Campaigns can be. Divide the Sales generated by the amount of money that you spend on your advert, to know your ROAS.
When you decide upon having a Video Streaming App developed, take as your example an industry leader – like Netflix. This can give you the idea of adopting their Business Strategy. Think about deciding upon a technology stack, and a niche for your application. Consider the industry-specific requirements that are there, like complex cloud architecture, and so on. Get a clear picture of your project, before you think of approaching mobile application developers for developing the app for you.
Are there still some questions that you would like to have answered? Some niggling doubts? Feel most welcome to get in touch with us for a friendly consultation – free, but of course.
We can also provide you with customized solutions related to Video Streaming Applications, as and when you require them.