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Application Development
Published: Mar 18, 2024

OTT App Development: A Clear and Concise Guide

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Chirag works as a Technical Innovator, known for his extensive knowledge in Angular, .NET Core, Web API, and several other advanced technologies. He holds 9 years of experience.
Guide to OTT App Development

Quick Summary: One of the hottest trends in the entertainment field today is OTT media streaming platforms. The demand for OTT apps is increasing, which provides a golden opportunity for businesses. This guide will help you understand everything about OTT app development and how you can create one to leverage the benefits of this flourishing domain.

The demand for personalized and on-demand media content has skyrocketed with the advent of OTT platforms like Netflix, Apple TV, YouTube, Disney+, and more. With the evolution of technology, consumer preferences have changed. Therefore, OTT software and apps have become very popular in the media and entertainment sector.

You can capitalize on this trend by developing and launching a custom online media streaming app. OTT app development offers immense opportunities for businesses and opens new revenue streams. With innovative features for app development and consumer-oriented business strategies, you can quickly capture your market share in this domain.

As a leading application development company, we understand the complexities and nuances of creating a successful OTT platform. Join us as we share complete insights on OTT app development, including its types, key features, and much more.

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On This Page
  1. What is OTT App Development and Why Should You Invest in It?
  2. What are the Types of OTT Apps You Can Develop?
  3. Essential Features for OTT App Development
  4. What is the Process of OTT App Development?
  5. How Much Does OTT App Development Cost?
  6. Let Radixweb Help You Build the Best OTT App

What is OTT App Development and Why Should You Invest in It?

OTT app development involves creating a mobile or web-based OTT (Over-the-Top) application. It involves specialized skills, including app designing, coding, testing, project management, and more.

OTT or Over-the-Top applications are media streaming platforms that deliver content over the internet, unlike traditional cable, satellite, and broadcast services. Users can access OTT content via internet-connected devices like smartphones, smart TVs, and computers.

Today, developing OTT applications is a profitable option. There is promising growth in the OTT domain that is providing new revenue opportunities for businesses. According to MarketsandMarkets research, the global size of the OTT market was approx. $202.5 billion in 2022. It is expected to reach approx. $434.5 billion by 2027, growing at a CAGR of 16.5%.

This market trend presents potential revenue opportunities for those interested in creating web apps or undergoing mobile app development for the OTT domain. The increasing number of users for Over-the-Top services is the driving force behind this remarkable growth in this domain.

Let’s see how you can benefit from investing in developing an OTT app.

Global Reach

Businesses can reach a massive audience base with OTT as it can be accessed from any device connected to the internet from anywhere. It helps them tap into a diverse audience base and increase their earnings.

Excellent Growth Prospects

The over-the-top market is continuously growing with the massive expansion of the internet and people switching from traditional media platforms. The accessibility, cost, and on-demand services make OTT a preferable choice for people. Hence, there is an immense growth opportunity in this market.

Diverse Earning Models

Investing in OTT app development provides diverse earning opportunities. You can earn revenue based on different monetization models that are:

  • SVOD: Offer media content on a monthly or yearly subscription.
  • AVOD: Offer free media content and earning by advertisement.
  • TVOD: Earn through the pay-per-view model.

Low Entry Barrier

Entering the OTT market is relatively easy due to low entry barriers. It helps to bypass the traditional satellite and cable TV distributors and content is directly provided to customers over the internet.

What are the Types of OTT Apps You Can Develop?

OTT app development is not just about creating a video streaming platform. There are different types of apps that offer various services. You need proper market research to create an OTT application. Analyze the market to understand the requirements of your target audience and choose the type of application that satisfies their needs.

  • Video OTT: These are the types of applications that offer online video streaming. Examples of such live video streaming apps are Netflix, Sling TV, and Hulu, which offer on-demand videos, TV shows, movies, and originals.

  • Messaging OTT: They are instant messaging applications allowing users to send/receive messages over the internet. Telegram, WeChat, Facebook Messenger, and WhatsApp are some examples of these applications.

  • Voice Calling OTT: These are applications that allow users to make voice and video calls using broadband or cellular networks. It is known as VoIP (Voice over Internet Protocol). Examples of it include Skype, FaceTime, Zoom, and WhatsApp.

  • Audio OTT: These apps allow users to access and listen to music over the internet. Examples of audio OTT include Spotify, Amazon Music, YouTube Music, and Apple Music.

Essential Features for OTT App Development

User experience is pivotal for a successful Over-the-Top mobile or web-based app. As per the recent mobile app usage statistics, over 21% of millennials tend to use an app daily for more than 50 times. Hence, you should focus on user-friendly features when crafting it. The following are the must-have features to build an OTT web/mobile app:

  • Search Bar
  • Watch List
  • User Profile
  • Multi-device Support
  • Social Sharing
  • Screen Mirroring
  • Multilingual Content
  • Push Notifications
  • Subtitles

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What is the Process of OTT App Development?

There are different stages for developing mobile apps and web apps, covering various aspects such as development, testing, and deployment. The following are the steps to follow to create a new OTT web or mobile app.

OTT Application Development Process

Look for Audience and Market Trends

Begin by doing thorough market research to identify your audience, competitors, and the trends that are currently prevalent. It will enable you to understand the challenges and opportunities in this domain.

Choose the Features and Business Model

Once you have a clear picture of who your audience and competitors are, you can determine the features that address the pain points of your audience that currently no competitor has tackled. You also need to choose an appropriate business model to identify how you’ll generate the earnings.

Look for a Reliable Tech Partner

Developing a unique and competitive OTT app requires technical expertise that you can get from a tech partner. So, you need to choose the right OTT app development company to build your Over-the-Top media streaming apps. Follow the best tips on how to hire app developers to get the right experts for your project.

Pick a Suitable Tech Stack

Selecting the best technology is crucial to ensure optimal user experience and security. The main technologies in developing OTT apps include:

Front-end Development

  • React Native
  • Ionic
  • Flutter
  • Xamarin

Backend Development

  • Django
  • .NET
  • Node.js

Databases

  • MySQL
  • MongoDB
  • PostgreSQL
  • SQLite
  • Cassandra

Programming Languages

  • Java
  • Kotlin
  • Swift
  • Objective-C

Cloud Infrastructure

  • Amazon AWS
  • Azure
  • GCP (Google Cloud Platform)

Payment Integration

  • Stripe
  • PayPal
  • Skrill
  • Authorize.net

CDN (Content Delivery Network)

  • KeyCDN
  • Cloudflare
  • Fastly
  • Akamai
  • CloudFront

Launch an MVP

Since launching a new app has high stakes and risks, it is advisable to start with an MVP (Minimum Viable Product), which is a basic version of a full-fledged app. It offers necessary features for early adopters and enables you to validate your idea and minimize risks. You can avoid a significant financial loss with an MVP.

Build and Deploy Iteratively

After launching an MVP, you can release improvements based on user feedback with an agile approach. Agile is a software development approach that focuses on iterative development, creating software in sprints. It helps to build, test, and release software incrementally with continuous improvements. Any experienced OTT platform development company working with modern SDLC will follow the Agile approach. It will help to meet user needs with improved features and functionalities.

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How Much Does OTT App Development Cost?

There is no certain answer to this question without knowing your requirements. When it comes to the cost of application development for the OTT domain that's tailor-made as per your business requirements, there are dozens of factors that require consideration, such as:

  • App features
  • Complexity
  • Developer rates
  • Type of app

Developer rates are a major factor in the cost and hourly developer rates vary across the world. The following table shows these rates for different regions around the world.

RegionHourly Rates (in US $)
North America$80 - $150
Asia$20 - $60
Europe$50 - $100
Gulf$30 - $120
Australia$40 - $130

As per the above table, the average cost of developing an OTT app in the USA would be anywhere between $20,000 and $300,000 or more.

It can rise with increasing complexity and customization. On the contrary, if you hire mobile app developers in Asia, not only would it be cheaper to outsource your project, but you’ll also get cost benefits of up to 60%.

If you look at the different stages of creating an OTT app like planning, designing, development, and more, each of them takes its own chunk of the cost. Let’s breakdown the cost based on these stages:

  • Planning: It will take around 10% of the total cost, which can be $2000 - $30,000.
  • Design: Around 15% of the total cost goes to design, which is $3000 - $45,000.
  • Development: It takes the biggest chunk of 60% of total cost, that is $12,000 - $180,00.
  • Testing: The average cost ranges between $2000 - $30,000 with 10% of total cost.
  • Deployment: It is around 5% of the total cost and can be between $1000 - $6000.

Besides these factors, there are also some hidden variables that affect the cost, including third-party integration, security features, app store fees, and maintenance. In a nutshell, the app development cost varies due to different variables affecting it. Moreover, a basic OTT application can cost around $20,000, but OTT apps like Netflix, Hulu, and Amazon Prime can cost hundreds of thousands of dollars.

Let Radixweb Help You Build the Best OTT AppPlanning to build your own OTT platform? Creating such a platform or application is an intricate process that we, as domain experts, can help you achieve successfully. As an experienced OTT app development company, we specialize in developing these apps and web-based platforms.We offer end-to-end custom app development services for various use cases to help you build an app from scratch. This includes building OTT apps with the latest mobile app development trends and industry standards. You can rely on us to build engaging Over-the-Top apps that run seamlessly on different mobile devices. Contact us now For a quick discussion

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Chirag Chauhan

Chirag Chauhan

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About the Author

Chirag is a skilled Technical Innovator known for his expertise in building robust and scalable applications. With 9 years of tech experience and a wealth of knowledge in Angular, Dot net core, Web API, MVC, C#, Linq Entity Framework, jQuery, Javascript, and MSSQL, Chirag consistently delivers high-quality solutions. His strong analytical skills and ability to collaborate effectively with cross-functional teams make him a trusted leader in delivering successful projects.