Cost & Features of OTT App Development

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A3Logics 08 Feb 2023

Table of Contents

The days of watching TV to enjoy favourite movies and tv shows are gone for a long time. People now choose to view and enjoy things from a different perspective than when they were initially shown on TV.

People nowadays pay for OTT iOS or Android App Development Services so they may watch their favourite programs whenever they want. People choose their latest films or tv series and begin watching them on whichever device they prefer. You simply require a basic Internet connection to be able to view any programs you desire. However, if you’d like to watch films or web series seamlessly and free of interruptions, you will be required to spend a bit of cash.

Since their introduction, OTT services have established themselves as the top option for the new online era. Every Android or iOS app development company is tempted to join in and explore the OTT marketplace by users’ enthusiasm and engagement for OTT services. Could this be because of the large number of users on these kinds of platforms, or do people prefer to stream shows online? What could be the origins of this exponential development in the OTT market?

This blog is exclusively for you if you’re planning to get into OTT app development and seem to be interested in finding out how much it’s going to cost. In addition to outlining the elements that affect the overall cost of developing an OTT app, we’ve also included relevant information about everything from the key features that the app must have, to the tech bundle that is advised for its development, and much more.

What do you mean by OTT Platforms?

OTT platforms are available in two variations; the first is a free trial that provides subscribers with access to some media; whereas the second is a premium version that requires individuals to sign up for the OTT platform to use its functionalities.

Under these subscriptions, individuals must pay to enjoy any OTT applications. The platform exclusively needs to charge for officially licensed content that can be accessed solely through the platform. Users who want to view that content first must spend a subscription charge to unlock it.

An improved user experience has been made possible by the usage of Artificial Intelligence (AI), which is incorporated into OTT platforms. The platform may display the content that people have viewed or will be most inclined to watch by using AI-based algorithms. It creates a snippet of subcategories to assist users in watching content depending on or connected to previously viewed content.

Over-the-top (OTT) services like Netflix have fundamentally altered the media market. You could have a hassle-free viewing experience on multiple devices that include laptops, PCs, and Tablets as well as enjoy iOS or Android app development services. The two primary factors driving the surge in popularity and market growth for these applications are accessibility as well as a commercial-free experience while watching films, Sitcoms, and many other forms of content.

Since we have become familiar with the idea of the OTT applications’ purposes, it seems like a more lucrative industry that can flourish in the modern age. Indeed, it represents a fantastic opportunity to develop your brand, establish a strong marketing strategy, and establish a name for yourself in the digital media and leisure sector.

What Is the Cost of building an OTT App? 

The budget for developing an OTT app varies on many parameters:

  • The complexity level of the App
  • Number of features being incorporated
  • The experience level of the development team
  • Comprehensive Index of data assets (for media)
  • The type of platform
  • The technological set used in the development
  • Number of technological resources
  • Timelines and Development Roadmap

For apps resembling Amazon Prime Video and Netflix, an average OTT app development company would charge between $25,000 and $60,000 in India, and between $35,000 and 80,000 in the US.

An OTT service resembling Disney+ Hot Star would cost somewhere around $34,000 and $45,000 to develop.

The price would be probably at least $60,000–$75,000 if the service includes hybrid functionalities (YouTube with OTT).

The development of a fully functional OTT service could potentially take 10 to 14 months.

Top 6 Factors that govern the success of OTT App Development

Selecting the appropriate set of technologies is the first step in developing an OTT app or streaming media service. This involves selecting a reasonable server, streaming interface, as well as security procedures.

The following are the techniques to be pursued for creating quality OTT apps:

  1. Find a suitable segment

 When trying to enter this business, you’d need to ensure what speciality you are planning to enter. OTT video streaming app development is a very diverse ecosystem. Going super narrow is the secret to having success in a competitive marketplace.

  1. Create an inventory of content

 You cannot disregard a list of the media that you’re going to stream on it following the launch considering content seems to be the real core of an OTT streaming platform. Additionally, make certain that the content is outstanding because that’s what makes an OTT streaming app special.

  1. Select a business model

 The three styles of roadmaps used by OTT administrators are subscription-based, advertisement-based, and commercial models. Which revenue model you must implement is always recommended in your app concept. All of these approaches seem to have advantages and disadvantages.

  1. Design a website

 When you are certain of the course of action you will take, it would be the perfect time to create the first component of the OTT media app design services, basically the website. All options are on the table, irrespective of whether users can use your mobile app development services or not, the website will deliver them a simple and effective experience.

  1. Determine the technical framework

 The ultimate decision will depend on the precise needs and OTT app conceptual frameworks, even though there are many OTT app development technologies as well as 3rd-party tools that you could employ to construct your OTT apps.

  1. Having the OTT app built

 Executing your strategy and developing your application constitute the final 2 steps. Therefore, try choosing a team of motivated OTT app developers and move forward to dominate the OTT marketplace.

Who Will Benefit the Most from OTT App Development?

The potential benefits of OTT apps may transform numerous organizations, expand their commercial potential, and generate more revenues than ever before. The following organizations stand to gain significantly from developing an OTT service:

  • Academic Establishments
  • Independent Coaches
  • Multinational Enterprises
  • Trainers for Wellness & Sports
  • Charitable Institutions
  • Authors of content and many others

What are the Kinds of OTT Services That Are Available Right Now?

The tremendous Netflix phenomenon, which continues to evolve, has made a substantial impact on the OTT global market.

Nevertheless, OTT app development isn’t only constrained to streaming video services; there are several additional solutions presently available on the market that include:

Messaging, Audio, Video as well as VOIP

As everyone knows, out of these 4 categories of OTT platforms, the video category has managed to gain the most popularity. We have a slightly partial justification for concentrating our attention on OTT streaming services, for the fact that everyone seems to be particularly interested in its market capitalization.

Regarding the development of OTT apps for streaming video, there are three main categories on the market:

  • Service-oriented OTT platforms
  • Communication or Content-based OTT platform
  • OTT associated with form devices

Allow us to provide you with just one concluding remark: the emergence of OTT platforms seems to be what catapulted businesses towards the pinnacle of the OTT marketplaces.

What do you mean by a White Label OTT Application?

A white-label OTT solution is a pre-tailored service that is easily accessible to presenters as well as filmmakers with no outward sign of the service provider’s connections or branding. Simply put, white-label streaming services for any OTT Video App Development Company employ a unique video player which showcases your logo rather than any of the advertising of 3rd parties.

Why is this the ideal time to invest in the development of an OTT app?

Unquestionable global popularity for OTT has been constantly growing. And a few of them currently hold the title of greatest OTT platforms ever. Some excellent OTT platform examples would be – Amazon Prime Video, Netflix, Disney+ Hotstar etc.

Being one of the most highly regarded OTT platforms throughout the entertainment and media business, these apps bring in billions of dollars annually. Let’s check the data for every OTT video app development company:

Web-based solutions that let consumers stream web series, as well as movies without the need for a satellite or cable membership, are referred to as OTT services. With over 200 million subscribers globally across services such as Netflix, Amazon Prime Video, Disney+ Hotstar, and more, the current projection for OTT profitability in 2023 is more than 150 billion dollars in the United States. By 2026, the market is estimated to have expanded to more than $200 billion.

After gazing at these figures, one may anticipate that there will be more OTT users internationally and much fewer TV viewers overall in the coming few years.

To optimize your exposure towards a more focused audience and build a successful business strategy, you must establish your methodology with video streaming app development before investing in such a major platform. The following seem to be some advantages of developing OTT apps for organizations to gain an edge over the competitors:

  • An increase in advertising-based earnings
  • A strategy centred on profits to maximize sales
  • OTT Platform expansion possibilities are endless
  • Flexible broadening of access possible among gadgets
  • Seamless business expansion with ever-growing memberships/subscriptions
  • Excellent Business Possibilities for Newcomers

Why pick Custom OTT Application Development to Rapidly Enhance Your Business?

It doesn’t make sense to create your new project from nothing unless you’re overflowing with resources because it necessitates a considerable amount of effort and resources and therefore will dramatically increase your spending limit. Let’s say you wish to expand your Android or iOS App Development Company into the entertainment and media industries. So in this scenario, businesses should receive support from something like a customised OTT app, which can quickly assist you in formulating and supporting your corporate objectives.

What are some Benefits of Customizable OTT App Development?

Here are a few benefits that a customizable OTT service model brings to your business strategy:

Cost control

Cost savings are among the main reasons to invest in a bespoke OTT service. Since it costs more time and resources to construct an app entirely from scratch, this effect can be attributed to the price hike. But this can exhaust the already limited budgets of startups. In contrast, a customizable OTT service that seems to be quick to implement and simple to integrate permits you to quickly justify the needs of the business.

Accelerated Market Introduction

 You may make a profit much more swiftly with a fully prepared structure that could also instantaneously adapt to the project plan. Additionally, it enables you to use the time you’ve saved to promote the services and just get them into the marketplace as quickly as viable.

How Should Your OTT Video Streaming App Be Developed?

When the app has a lot of data, it can be challenging to aim at the first-of-its-kind mobile app development services.

The creation of OTT apps involves specialised teams of professionals armed with cutting-edge technologies.

Therefore, the following factors need to be taken into consideration when creating the OTT apps to enable a better acknowledgement of the market needs:

Establish Your Specialty

It’s challenging to produce content for a variety of niches and become successful instantaneously. Before stepping into the entertainment and media industry, selecting the appropriate potential customers is fundamental. The innovation and objectives are emphasized by defining or distinguishing your speciality; as a result, you won’t run into any problems when starting your operations.

Design a Tailored Content Offering

Here’s the trick, you need to do some exploration to know the users’ preferences and likes, provide media that isn’t already there, make sections for content that drops in hot, and develop meaningful content that grows the audience for the platform. It would indeed be preferable for you to never lose awareness of the fact that your speciality will be determined by the content you generate. As a result, you must specify almost every piece of information you would like to incorporate into the app.

Pick an effective business marketing strategy

Each business in the world operates with the same purpose in mind: to bring in money so they can recover their original investment. Among the most profitable objectives one shouldn’t underestimate in the context of OTT platforms is choosing the most suitable business model.

What are the most popular enterprise models for OTT App Development?

To rapidly boost your revenue, one can incorporate any of the following 4 business strategies into the OTT application development strategies:

Subscription Based Video On-demand (SVOD)

Users under the on demand app development model have to pay a certain amount to have access to the whole content catalogue. Furthermore, consumers can acquire their favourite shows or movies and store them in their collection for later viewing due to this subscription-oriented strategy. The SVOD approach is utilized by successful apps like Amazon Prime Video, Netflix, and more. 

Transactions Based Video On-demand (TVOD)  

 iTunes from Apple is a great example of a popular app that makes use of the TVOD model. It functions on a PPV (Pay Per View) arrangement. Users have access to apps like these without paying a charge or needing to subscribe. However, accessing and downloading the app’s content will cost users money. This technique can indeed be effective if your objective is to develop a premium application with just in-app purchases (only paid content) that users cannot access until they make payments for it.  

 Ad-Based Video On-demand (AVOD) 

MX Player represents one of the popular apps that follow the AVOD business model. Among the strongest approaches for platforms with a large audience is this particular one. By viewing a few advertisements, customers have access to the majority of the content without any payments; for each advertisement, the app makes a profit and boosts the business revenue. 

Hybrid Approach

You can incorporate this on demand app development model as a source of funding for the business if you desire to fulfil the requirements of multiple user classes. It integrates the first 3 business models discussed above. Some individuals desire unlimited access to the content, while others only want to view the content for free. Thus, the hybrid approach is a worthwhile investment that could increase revenue and strengthen your business. 

You could blend different strategies to create your OTT application while taking into consideration the budget as well as the customer base you want to address. To keep users engaged with the services, you must offer them fresh content every day or every week.

What are some key points to remember when building an OTT app?

To dominate this rapidly expanding online streaming market, you should come up with an original concept. You desire to provide a platform that is both appealing and simple for the viewers so that they can watch their favourite shows and blow off steam. Additionally, you must invest time in competitor research to build a product that draws customers from multiple demographics.

It’s since they have already covered this sector and established a sizable market footprint whereas you’re simply trying to enter it.

You must incorporate components that are necessary for an outstanding OTT app to contend with OTT application development companies like Amazon Prime Video, which provides a variety of different services to subscribers.

Here are some elements you would need to include: 

User Interface/User Experience Layout 

The design of the app alone has an impact on the user’s engagement with the application. The success of the platform in the battle with your rivals hinges on how effectively your app is welcomed by users and also how they initially engage with it. Consequently, creating basic yet captivating application crossovers can provide you with a strategic advantage.

Incorporating payment structures

You cannot overlook the payment gateways feature. When a person demands to subscribe to the app, they want the process to be straightforward because if they experience any payment issues or are unable to pay, their opinion of your service will suffer tremendously. Additionally, increasing dependability is accomplished by offering users several payment alternatives they prefer to utilize.

Customer service quality 

It is a fantastic feature to incorporate into the OTT app considering that it will enable individuals to look up any questions they seem to have. Thus, a clever feature that could also assist you in maintaining involvement and participation with the users is to focus on providing 24*7 customer assistance and support to keep the app wholesome, exciting, and current with the times.

Analytics-Powered Search

This functionality allows the users to search for all sorts of content through the search. You can incorporate analytics-driven query flows and deliver precise recommendations and results based on the user’s desire to boost interaction.

Multi-linguistic Capabilities 

It’s necessary to include a capability like multi-language in apps such as OTT platforms if you intend to reach an international audience. It makes it simpler for individuals from different locations to fully understand and enjoy content in their native language as well as in audio format.

Screen Mirroring

With something as simple as switching on the casting capability on the devices, individuals will be able to access the content on many other platforms. It helps in connecting multiple devices, including a TV, a gaming console, or any additional device that supports mirroring.

Queue/Watch later 

Users can add their favourite movies to the waitlist so that they can view them afterwards without needing to search for them again. This feature is usually made available to app subscribers.

Level Of Customization

Users prefer to preserve their favourite shows in one segment in they can conveniently explore, which is why this personalization option is readily available. By providing the users with the opportunity to customize their preferred content segments, this functionality provides them with a seamless experience.

The functionalities listed above are among the most prominent considerations to make if you would like to assist the business to expand significantly in the OTT domain. There happen to be numerous additional capabilities you can add subsequently.


Over-the-top (OTT) app development has had a profound impact on our lives by changing the way we consume media and entertainment. OTT apps, such as Netflix, Hulu, Amazon Prime Video, and Disney+, allow users to stream television shows, movies, and other video content directly over the internet to their devices, eliminating the need for cable or satellite subscriptions. This has resulted in greater convenience and accessibility to a vast library of content and has shifted the traditional model of television viewing. Additionally, OTT application development has also spurred innovation in areas such as virtual reality, personalized recommendations, and user engagement, further enhancing the overall viewing experience.

The future of OTT looks promising and is expected to continue growing and evolving in several ways. Increased Integration with Smart Devices such as televisions, game consoles, and smart speakers, is going to make the viewing experience more seamless and convenient. Every OTT App development company is planning to expand into emerging markets, where internet penetration is growing, to reach new audiences and provide them with access to a wide range of content. It is surely going to continue to focus on creating personalized and interactive content that engages and retains audiences. This could include interactive movies and TV shows, virtual reality experiences, and more. Adoption, as well as integration of New Technologies, will continue to grow through new platforms such as artificial intelligence, machine learning, and blockchain, to improve the user experience and increase revenue.

Frequently Asked Questions

How Can OTT Video Applications Help Your Digital Business Grow? 

OTT video applications have a significant amount to offer a video enterprise, capitalizing on the blazing prominence that existing viral OTT platforms have generated. Through its inclusion, you can benefit from its widespread reach as well as an accelerated increase in sales thanks to its well-thought-out methodologies.

Which VOD business model is most suitable for your OTT venture?

It going to depend totally on the business concept, however, if you intend to follow Netflix’s approach, you must pick the SVOD or TVOD commercialization strategy to receive a guaranteed minimum stream of income.

How does one build OTT video applications?

To commence, you are going to require guidance from OTT app developers to oversee the complete technological procedure. They will take care of the application’s core functionality, styling, as well as development while you concentrate on other aspects of your company’s operations. 

Are OTT Businesses Jeopardizing YouTube?

Probably not for a while, at least. The largest market presence belongs to YouTube, but in addition to keeping that honour, the application needs to perform a better task of assisting individuals with limited subscriptions as well as view figures. Commercial encouragement, substantial advertisement earnings, and the development of payment walls and membership models for specific videos can all contribute to this.