OTT or over-the-top apps are those platforms where users can view content such as films and television shows over the Internet. Compared to conventional television, OTT apps offer more convenience, user-friendly features, and on-demand access to content. Thus, there is an increasing demand for developers to create such applications.
It’s a hot time for enterprises to jump on OTT application development and cash in on the rising industry.
According to reports, the global OTT ecosystem will reach USD 139 billion by the end of 2028. Moreover, with a CAGR of 17.7%, this industry will show exceptional growth in the upcoming years.
If you are also interested in launching your own OTT application, this comprehensive guide will help you launch your OTT platform in 2023.
This article will provide a detailed roadmap of the OTT app development journey. We’ll give an overview of the steps involved in creating an OTT app and highlight some best practices to help you create a successful application.
How people interact with content is changing rapidly. OTT platforms have become the preferred choice for streaming content, and as a result, they are becoming increasingly popular.
OTT platforms provide convenience and flexibility, allowing users to access content whenever and wherever. Thus, businesses can leverage this technology to reach a larger user base and increase their customer base.
Moreover, OTT platforms have low overhead costs and provide more addressable advertising opportunities than traditional media outlets. The revenue-generation streams are highly profitable since users are willing to pay for premium content.
On the other hand, advertisers are also leveraging OTT platforms to reach out to their targeted audience. The interactive and personalized nature of OTT platforms also helps them engage with users more effectively.
This makes OTT an attractive investment for businesses looking to expand their reach and improve customer engagement.
Step-by-step OTT app development guide 2023:
Whether you hire dedicated developers or go for in-house development, below are the essential steps you need to know:
Pick a niche with more eyeballs:
Before researching how to create an OTT app, you need to pick a niche. It will help you understand your target audience and their preferences. The thumb rule for selecting a niche is to pick one with more eyeballs, i.e., One with lots of people watching content related to it. Some popular niches that have the potential to generate more returns are sports, movies, TV series, gaming, and educational videos.
Choose a development platform:
Once you have finalized the MVP for your OTT application, you need to choose a platform for development. Several options are available in the market, such as Android, iOS, Windows, and HTML5. We recommend choosing a platform that supports the most number of users. It will help you reach out to a broader audience and generate more returns from your application.
Once you have selected the niche for your OTT app, it’s time to develop MVP (minimum viable product). It will help you understand the functionalities of your OTT app and how users will interact with it. The MVP should include fundamental features such as content management, user management, payment systems, and other integrations.
Sourcing the inventory:
To create an OTT app, you will need digital media content called inventory in the industry. You can source digital media content from studios or create your own. Mixing both is best because it will give you access to different content. Moreover, you will find various license-free content on the internet, which you can use.
Building the app:
Once you have tested the MVP and finalized the content, it’s time to hire an OTT app development company and build the app. The app should be interactive and user-friendly to ensure maximum engagement and a better user experience. In addition, the development team should focus on creating an intuitive UI/UX design and ensure that the app meets industry standards.
Testing and launching:
Once the development process is finished, it’s time to do the testing. It will help you identify bugs and glitches in the app if any. Next, you must ensure that all the functionalities are working correctly and that your OTT app is ready to launch. After testing, you can launch your OTT application on the App Store and Google Play.
Choosing the right monetization strategy:
The last step is to decide the right monetization strategy for your OTT app. You can choose from different techniques, such as subscription-based, ad-based, or a combination of both. However, selecting a suitable monetization model is crucial as it will determine your application’s success in the long run.
Intuitive features to have in your OTT app:
It’s important to first explore and finalize the OTT features for your app so that you can get the best traction out of it. Thus, before hiring app developers, check out these must-have features that can help you create an engaging and interactive OTT app:
Seamless search feature and navigation:
Think from an audience’s perspective while developing your OTT app. For example, the search feature should be able to provide relevant results based on the user’s query, and navigation should be simple and intuitive.
Categorizing content will make it easier for users to explore and find what they want. You can also give users the ability to sort content based on their preferences. The better the navigation and search feature, the better engagement you will get from users.
Multilingual content and high-quality subtitles:
To maximize the reach of your OTT application, you should offer content in multiple languages and provide high-quality subtitles. It will enable you to tap into a more extensive audience base and make your OTT app more accessible.
The best way to gain an edge in this highly-competitive space is by providing rich and immersive content. This can be done by offering ultra-high definition (UHD) or 4K resolution content and allowing users to stream content in various subtitles.
Robust payment gateway integration:
The overall payment process should be so frictionless that users don’t have to think twice before subscribing to your OTT app. You should choose a secure payment gateway that provides various payment options such as credit/debit cards, net banking, etc.
Invest in the best OTT app solutions for payment and ensure that users don’t get any errors while making payments. It will help increase user conversion rates and boost your OTT app’s revenue.
Analytics and insights:
Data and analytics play a significant role in the success of an OTT app. Tracking user engagement, activity, and preferences will help you identify trends in the market and get insights into what content users prefer.
You should also be able to track the performance of your app in real time and get insights into how users are interacting with the different elements of the app. This will help you make well-informed decisions when it comes to creating and curating content.
Watch later and content download options:
Your OTT app should give users the option to save their favorite content for later and download it if necessary. This will improve user engagement and help you create an immersive viewing experience.
The main logic behind offering these features is to retain and engage existing users. A content download option will also help generate more revenue, as most people prefer to save content and watch it on the go.
There are several advantages to launching your own OTT apps. You can create a unique identity for yourself and tap into an extensive audience base without any geographical limitations. Moreover, you can have competitive benefits like:
It’s quick to create a loyal customer base:
Unlike traditional media or television, launching an OTT app helps you to gain a quickly loyal following, as it’s much easier to target audiences based on their interests and preferences.
You can monetize your content much faster:
OTT apps provide a great opportunity to monetize your content, as you can offer subscription and advertising-based revenue models. You can also leverage data analytics to understand your customers’ needs better and create more customized content for them.
You can increase your brand’s visibility:
Creating an OTT app helps boost your brand’s visibility and reach out to new audiences. Moreover, you can promote your content across different platforms and get more traction.
There are multiple revenue models that you can opt to monetize your OTT app from the day one of launch, including:
SVOD: Subscription-based Video on Demand is the most popular revenue model for OTT apps, as users need to pay a monthly or yearly fee to access the content.
AVOD: Advertisement-based Video on Demand is a revenue model where you allow users to watch your content for free and earn money by displaying ads.
TVOD: Transactional Video on Demand is a revenue model in which users need to pay for every content they view or download.
Hybrid: As the name suggests, this combines SVOD and AVOD. It allows users to watch content for free with ads or pay for an ad-free experience.
What did the exact OTT app development cost?
The overall cost of developing an OTT application will depend on various factors, such as the project’s scope, features you want to add, etc. However, the average cost of developing an OTT app can range between USD 150,000 to USD 200,000. This cost changes depending on the below factors:
Technology stack and platform diversity:
The technology stack you use will be the main deciding factor for OTT app development cost. You’ll need to choose an appropriate technology stack based on the kind of application you want to build and the features you plan to add.
Also, you need to consider the platforms where your OTT app will be released. Developing a cross-platform app will require more time and resources as compared to developing an app for a single platform.
The complexity of the features:
The cost of developing an OTT app also depends on how complex the features are. If your app requires complex features like real-time streaming, AI-based recommendation systems, etc., then the cost of development will increase significantly.
Moreover, the number of third-party integrations needed will also affect the total cost of development. For example, if you need to integrate payment gateways, advertising networks, etc., then the price of your OTT product will go up.
The cost of OTT app development also depends on the add-on services you plan to include. Most OTT apps offer features like content personalization, streaming analytics, and data-driven insights.
To sum up, the cost of developing an OTT application can vary depending on the features you want to add, the technology stack you use, etc. Therefore, it’s essential to have a clear idea of what features and functionalities you want and the cost required to develop them before starting the development process.
Why choose Auxano Global Services for OTT app development?
AGS is the best mobile app development company, offering premium OTT app development services to help you build and scale the user base. We have a team of experienced professionals with expertise in developing high-performance OTT apps for Android and iOS platforms.
AGS team has a proven track record of developing OTT apps that are feature-rich, user-friendly, and secure. Moreover, we provide end-to-end support from technology consulting and app development to marketing and maintenance.
Developing an OTT app can be daunting, but with the proper guidance and resources, you can create a powerful and engaging streaming application. We hope this article has given you a better understanding of creating an OTT app and the associated development cost.
Frequently Asked Questions
1. What technology stack do I need to develop an OTT app?
2. What is the average cost of OTT app development?
The cost of developing an OTT application can range between USD 150,000 to USD 200,000 depending on the features and functionalities you require.
3. Is developing an OTT app in 2023 profitable?
Yes, OTT apps are becoming increasingly popular, and the market for streaming services is expected to grow significantly in 2023. Therefore, investing in OTT app development can be a profitable decision.
4. What niches are popular in the OTT ecosystem?
The most popular niches in the OTT ecosystem are entertainment, gaming, education, health, and sports.
5. Why choose AGS for OTT app development?
AGS is the best mobile app development company offering premium OTT app development services. Our team of experienced professionals is adept at developing high-performance OTT apps for Android and iOS platforms.