How to Make a Streaming Service Like Netflix

Today, people can watch their favorite shows and movies on their devices at any time. With the help of Netflix, they can binge-watch their favorite shows and movies on their terms. The platform's wide selection of movies and documentaries keeps us entertained for hours.

In 2024, the company's annual revenue reached approximately 39 billion U.S. dollars, maintaining the strong year-over-year growth that Netflix has experienced over the past decade.

And according to Statista, the global revenue in the Video Streaming (SVoD) market is expected to reach $119.09 billion in 2025.

Despite the increasing popularity of online streaming, many businesses are still looking to create an app that can stand out from the crowd. This article will give you brief knowledge that you need about building an app like Netflix.

Brief overview of Netflix

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Reed Hastings and Marc Randolph co-founded Netflix in 1997 to provide a convenient and affordable way for people to watch TV shows and movies. In 2007, the company introduced a feature that allowed users to stream movies and TV shows directly to their computers. In 2012, it started to take on a more prominent role as a producer and distributor of television series and films.

Statista published that Netflix's subscriber base surpassed 300 million paid subscribers worldwide in the fourth quarter of 2024.

With a variety of plans, Netflix can cater to the varying needs of its users. Its diverse selection of content is ideal for people who are looking for something different from their usual TV. The company also generates a portion of its revenue from its own media rights and produced content.

How is Netflix app built?

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Amazon Web Services S3 is a cloud-based storage system that allows Netflix to store all of its media files and videos. Through the use of its Elastic Transcoder service, they can then convert them into various formats that are suitable for use on various streaming devices.

Netflix value proposition

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Easy access
Through its various platforms and operating systems, Netflix can deliver video to its users in different ways. It supports all the devices. This helps the company reach its goal of having a large and diverse fan base.

It provides a free trial for a month for new subscribers and allows membership cancellation at any time.

Variety of content
Netflix has unlimited high-definition TV shows, movies, series, third-party publishers and original content.

No ads
Although it only shows ads to free account users, the company also allows premium subscription users to stream content without ads. This method helps it reach its goal of increasing the number of people who subscribe.

Recommendation algorithm
Through its recommendation algorithm, Netflix can identify the best content for its users based on their queries. Through its machine learning platform, Netflix can identify the best content for its users based on their individual tastes. It can also analyze ratings, search queries, and other factors to improve its recommendations.

Now we can talk about the various steps involved in creating an app for Netflix and give you an estimate of the preliminary cost of developing such a service.

How do you start your own Netflix?

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To create your own video Netflix-like streaming service requires you to consider the following points:

1. Think about target audience and niche

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One of the most important factors that you need to consider when it comes to developing a streaming service app is the specific niche that you want to cater to. It may seem that "everything for everyone" is the best practice and less risky. But success often comes from serving a specific audience exceptionally well. Consider the following steps:

• Identify your primary audience — Define demographics, interests, viewing habits, and content preferences
• Research underserved segments — Look for content categories with passionate fans but limited streaming options
• Analyze competitor gaps — Identify what existing services are missing that your audience wants
• Quantify market size — Estimate your total addressable market and realistic subscriber potential
• Test your concept — Validate your niche with surveys, focus groups, or minimum viable content offerings

2. Develop a comprehensive business plan

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A coherent business plan is essential to guide your streaming service development. This plan should address content strategy, monetization, and market approach.

Content acquisition strategy

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Your content will be the core of your streaming service. Determine your approach:

• Original content production — Creating exclusive programming
  ◽️ Requires significant investment but creates unique value
  ◽️ Provides complete control over rights and distribution
  ◽️ Develops brand identity through distinctive content
• Licensed content — Acquiring rights to existing programming
  ◽️ Faster path to building a content library
  ◽️ Requires negotiations with content owners and distributors
  ◽️ Subject to licensing terms and territorial restrictions
• Hybrid approach — Combining original and licensed content
  ◽️ Balances unique offerings with breadth of content
  ◽️ Allows gradual shift toward more original programming
  ◽️ Diversifies content investment risk

Monetization model selection

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Choose the right revenue model based on your audience and content:

• Subscription (SVOD) — Monthly or annual fees for unlimited access
  ◽️ Provides predictable recurring revenue
  ◽️ Requires continuous content additions to reduce churn
  ◽️ Can offer tiered pricing for different feature levels
• Advertising-supported (AVOD) — Free access with ad placement
  ◽️ Removes price barrier for users
  ◽️ Requires significant scale to generate meaningful revenue
  ◽️ Can offer premium ad-free tier as upsell
• Transactional (TVOD) — Pay-per-view for individual content
  ◽️ Works well for premium or new-release content
  ◽️ No recurring commitment from users
  ◽️ Can complement subscription offerings
• Freemium — Basic content free, premium content paid
  ◽️ Creates low-friction entry point for new users
  ◽️ Clear upgrade path to paid features
  ◽️ Balances audience growth with monetization

Global expansion considerations

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If you plan to expand beyond your initial market:

• Content localization requirements — Subtitles, dubbing, cultural adaptation
• Regional licensing variations — Rights differ by territory
• Payment processing capabilities — Supporting local payment methods
• Regional compliance requirements — Different regulations by market

3. Address legal and licensing requirements

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Before launching your streaming platform, you need to establish a legally recognized business entity and comply with local regulations. Key steps include:

• Registering your business — Choose an appropriate business structure (LLC, corporation, etc.) based on your jurisdiction and tax considerations.
• Securing necessary permits and business licenses — Different countries and states may require media distribution licenses or broadcasting permits.
• Drafting Terms of Service and Privacy Policies — These documents outline user rights, responsibilities, and how their data is managed, ensuring compliance with regulations like GDPR and CCPA.
• Implementing age verification — If your content includes mature themes, parental controls and user age verification may be legally required.

Securing the right to stream licensed content is a complex process that requires negotiations with content providers and legal experts. When negotiating content rights, consider the following factors:

• Comprehensive licensing agreements — Whenever possible, negotiate full-season or multi-year rights instead of piecemeal, season-by-season contracts.
• Territorial restrictions — Understand whether you are securing rights for specific countries, regions, or global distribution.
• Streaming rights for different devices — Ensure that the contract specifies whether content can be streamed on smart TVs, mobile apps, web browsers, or third-party devices.
• Exclusivity terms — Exclusive streaming rights can differentiate your service, but they often come at a higher cost.
• Royalty and payment structures — Clearly define how content providers will be compensated, whether through upfront payments, revenue sharing, or royalties per stream.

Protecting your brand and content is just as important as acquiring the rights to distribute third-party media. Key measures include:

• Trademarking your service name and logo — To prevent others from using your brand identity and build recognition in the market.
• Copyrighting original content — If you create proprietary content, ensure it is legally protected against unauthorized use.
• Implementing Digital Rights Management (DRM) solutions — Technologies like watermarking, encryption, and token-based authentication help prevent content theft and unauthorized distribution.
• Developing anti-piracy measures — Use tools like fingerprinting and automated copyright enforcement to detect and mitigate piracy threats.

4. Hire a team

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Before you start developing an app, it's important that you choose a team that can deliver the best possible service. This team should be able to use various frameworks to build an efficient app. To fulfill all requirements you need a professional team with the following roles:

• Business analyst
• Software architects
• Web developers
• IOS/Android developers
• UX/UI designer
• Tester
• Project manager

A team for an application of this level needs to be really big, and it is not possible to hire one specialist for each role. It is also worth keeping in mind that it is not necessary to hire all of these specialists at once at the start since the project goes through different phases in which different numbers and variations of specialists may participate. 

There are three ways:

• Hiring in-house team

Having an in-house team can help protect your data and ensure that you have the necessary resources to handle emergencies.

• Hiring freelancers

On the internet, there are thousands of software freelancers that can provide you with the ideal service. They can give you a large pool of talent, but there are certain restrictions that you should consider. For instance, some of them may not have the necessary experience to deliver the same level of work.

• Hiring a software development company

If you have a limited amount of technical knowledge, or if you have other important tasks that need to be handled in-house, you can outsource the development of your app to a reliable company. They will handle the entire process from start to finish.

For example, we at Mad Devs had developed a secure and private video streaming service and live video broadcasting cinema to provide an entertainment experience to isolated groups feeling homesick:

Once you have assembled a team, you can begin the planning and implementation. To facilitate this process, we prepared the MVP to be integrated into the video streaming services below. 

5. Define your initial feature set

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Before diving into full-scale development, it's essential to determine the core functionality that your streaming service must have at launch. Instead of trying to build a fully-fledged Netflix competitor from the start, focus on the most critical features that will provide value to users and validate your concept.

Prioritize features such as:

• User registration and profiles – Essential for personalization and access control.
• Content library and categorization – Organizing content efficiently for easy discovery.
• Video player functionality – High-quality streaming with adaptive bitrate support.
• Search and recommendation engine – Helping users find content they enjoy.
• Basic analytics – Tracking user engagement to refine future updates.

While it may be tempting to develop advanced functionalities like AI-driven recommendations, offline downloads, or live-streaming support right away, these can be added iteratively based on user feedback and demand.

At this stage, building a Minimum Viable Product (MVP) is the best approach to validate your streaming service’s potential. An MVP allows you to launch quickly, gather user insights, and refine your platform based on real-world usage.

6. MVP essentials: the foundation of your Netflix-like streaming service

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The basis of all work will be a properly composed MVP. Netflix falls under the category of applications that require a heavy backend due to the number of features it will require in order to process streaming data. The total cost of developing such applications depends on the number of features they will have.

📖 For a deeper understanding of how to approach MVP development strategically, check out our guide.

Key features for your streaming service MVP are:

1. Registration
   You can let your users register for your service using various methods. Some of these include email, phone number, or social media. The methods that you choose for logging in and registering should depend on your audience. In addition to this, you can also provide a password restoration feature.
2. User profile
   With this feature, users can easily add their favorite web series or movies to the service. 
3. Settings
   Your app's settings can allow users to customize the experience of their device. They should be able to control various features: selection of subtitles on/off, language settings, rewind, play/pause, audio track, volume control, etc.
4. Push-notifications
   You can also integrate push notifications into your service to reach out to your customers. They can be used to inform them about new features and upcoming releases. They can also help retain their users. One of the most effective ways to increase the open rate is by adding rich media content.
5. Multiple languages
   You should consider supporting multiple languages if you plan on attracting international viewers. Having an app that can recognize different systems languages will allow you to change the language of the user interface as it learns about the device.
6. Content search
   Content that your users want to watch should be easily identified by either the name or the genre or category that they're looking for. Having an app that can predict the next show based on the first four characters of the search box will allow users to find the right content.
7. Payment gateway
   Most of the revenue that you'll get from your TV show streaming business will come from subscriptions. Having a payment gateway that works seamlessly across different countries is important to ensure that your users have a fast and easy way to pay.
8. Screenshot blocking
   Protecting the content is one of an integral part of your business investment. Specifically, if you decide to buy licensed movies from distributors. Having an app that can prevent users from recording or screenshotting their screen while it's active is vital.
9. Chat and comments
   It is not a necessary feature. Netflix doesn't have it. But having the ability to leave comments on every episode or show will allow your audience to interact with you and increase their interest in your content. This will also help improve the retention rate and the amount of time that your users spend in your app.

7. Gather user feedback & Improve UX

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Your MVP will provide valuable insights into how users interact with your service. Analyze user behavior, gather feedback, and make iterative improvements.

 Key actions:

• Conduct user surveys and feedback sessions
• Track user engagement metrics (for example, watch time, churn rate)
• Optimize UI/UX based on user pain points

8. Marketing & User acquisition strategy

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Launching a streaming service is just the beginning—without a well-planned marketing strategy, even the best platform may go unnoticed. To attract users and build a strong brand presence, marketing and promotion should be an integral part of your growth strategy.

A successful marketing campaign includes the following key activities:

• Paid advertising – Leverage digital ads on platforms like Google Ads, Facebook, and YouTube to drive traffic and acquire your first users.
• Social Media Marketing (SMM) – Build an engaged community on platforms like Instagram, Twitter, TikTok, and LinkedIn to connect with potential users.
• Influencer collaborations – Partner with influencers and bloggers to reach large audiences and boost credibility.
• Search Engine Optimization (SEO) – Optimize your website and content to rank higher in search engines, increasing organic traffic.
• Live events & networking – Promote your platform at industry conferences, tech meetups, and entertainment expos to gain visibility.
• Strategic partnerships – Collaborate with other companies, startups, or content creators to cross-promote and expand your reach.

A multi-channel marketing approach ensures steady user acquisition and brand growth, making your platform competitive in the crowded streaming industry.

9. Gather user feedback & Plan future enhancements

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After launching the initial version of your streaming platform, it's crucial to collect user feedback and analyze data to refine and improve the service. This ensures that future updates align with audience expectations and industry trends.

Key methods for gathering insights are:

• User surveys & Interviews – Directly ask users about their experience, pain points, and feature requests.
• Analytics & User behavior tracking – Use data-driven insights to measure engagement, watch time, churn rate, and content preferences.
• Community engagement – Monitor discussions, reviews, and social media feedback to understand user sentiment.

Once feedback is collected, prioritize improvements and new features based on user demand. This iterative approach helps maintain engagement, reduce churn, and build long-term success.

Things to consider while developing your streaming service

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Good network connectivity. The Internet speed of your platform will affect how it can stream the videos that are on-demand. For instance, if you're streaming a standard definition movie, the minimum speed of your Internet will be around 2MB/second. However, if you're planning on broadcasting 4K, 3D, or HD content, your Internet speed should be much higher.

Stable storage. Cloud hosting is the most reliable storage for any content. You can use PaaS. One of the main advantages of a platform as a service (PaaS) is that it can manage various aspects of the infrastructure, such as the storage, networking, and operating systems. A developer can focus on coding, while a PaaS provider can help manage the rest of the infrastructure.

Simple design. Having a simple and clean UI/UX is also important to ensure that your users have a quick and easy way to find what they're looking for. Make sure that the interface is simple and clean.

How much does it cost to start a streaming service

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Netflix falls under the category of applications that require a heavy backend to process streaming data. The total cost of developing an app for Netflix will depend on the number of features it has. To put it simply, the broader the functionality, the more time and resources are needed to build and maintain the platform.

A basic streaming platform with essential features typically takes about six months to develop. If you plan to create separate applications for users and administrators, costs will rise due to the need for different interfaces, backend configurations, and additional security measures.

To provide a clearer picture of financial expectations, the following table outlines the estimated costs of building an MVP streaming service with fundamental features, similar to Netflix.

If you need cloud hosting, video CDN, DRM security, and advanced analytics, expect additional operational costs of $10,000 – $50,000 per month.

Note: Netflix continues to evolve, investing billions into content acquisition, infrastructure, and user experience enhancements. Streaming services require continuous investment beyond the initial launch. 

Building a streaming service is not a one-time cost—it requires continuous development, licensing, and marketing efforts.

9 key factors that influence the cost of developing a streaming app

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Here are the key cost factors to consider when budgeting for your streaming service:

While looking into the above features, you need to choose which suits you. According to your choice, the rates may vary.

Best niche streaming services

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So who managed to take some positions and successfully coexist with such mastodons of streaming services as Netflix, Amazon Prime, Disney+? You probably haven't heard about them but there are alternative services that's filled with more specialized content.

Acorn TV

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Acorn TV is a service that features a wide variety of British television programs. It also has a selection of original programming from other countries such as Canada, Australia, New Zealand, Spain, and Ireland. It's a great alternative to traditional streaming services. Acorn TV is targeted to provide a variety of new shows from different countries that are ideal for fans of police dramas, detectives, and thrillers. It also has a selection of hard-to-find gems.

Britbox

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Another streaming service that's great for British television is BritBox, which has a selection of classic and current programs from the country's top networks, such as the BBC and ITV.

BritBox also has a wide variety of popular British programs, such as crime dramas, comedies, and mysteries. It additionally has a selection of BBC shows that are not available in the U.S., such as Good Morning Britain.

Crunchyroll

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One of the most popular anime streaming services is Crunchyroll. It claims that it has the largest selection of anime in the world. Through various licensing deals and mergers, Crunchyroll has become a must-have for anime fans. It also has a selection of Japanese television shows and movies, as well as East Asian dramas. Its website is additionally a great source for manga and anime news. Its free ad-supported version has been very popular among its users.

Mubi

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MUBI is a great niche streaming service for fans of independent films. Unlike other services, it doesn't only focus on the classic and cult genres. It also has a rotating selection of hand-picked films.

It has unique business model. MUBI adds new films to its library every day, but these only last for 30 days. This means that its library always has at least 30 movies. If you're a movie lover, then you better watch it right away.

Shudder

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Shudder is a great service for horror fans who are looking for a completely commercial-free alternative to traditional streaming services. It has a wide selection of supernatural, horror, and thriller movies. In addition to these, it also has cult favorites and Hollywood favorites.

To sum up

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Creating a streaming service similar to Netflix is a complex but rewarding endeavor. Success requires clear planning, careful attention to your target audience, and a strategic approach to developing your app. Starting with a focused MVP (Minimum Viable Product) helps you quickly test your concept and better understand user needs before expanding further.

Also, a streaming service platform involves significant upfront investment, ongoing costs for content licensing, technology, and marketing. Choosing the right monetization strategy and ensuring smooth user experiences across multiple devices and regions will be key to attracting and retaining subscribers.

Remember that building a streaming service that genuinely stands apart involves long-term commitment, flexibility, and listening closely to your users. Continuously enhancing your content, forming valuable partnerships, and fine-tuning technology based on audience feedback allows your platform to remain fresh and appealing. With this customer-centric mindset, your service will be well-equipped to achieve lasting success amidst a rapidly changing entertainment environment.

Thinking of launching your own streaming service? Contact Mad Devs for professional guidance, tailored strategies, and expert development. Book a meeting today and find out how we can support your project.