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How Much Does It Cost To Build a Streaming Service – Step By Step Guide

Published On May 7th, 2024 8298Media & Monetization
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In recent years, we have seen a tremendous transformation in the entertainment industry, with the introduction of online video streaming services; that’s the reason why businesses all over the world are wondering how to start a streaming service that offers subscribers unlimited access to a vast array of content and gain revenue out of it. 

With the likes of Netflix, Hulu, and Amazon Prime Video, people have more options to watch their favorite movies and TV shows than ever before. In fact, according to a study conducted, the global online video streaming market size is expected to reach USD 842.93 billion by 2027, growing at a CAGR of 12.0% from 2020 to 2027. 

With the rise of video streaming services, more and more entrepreneurs are interested in creating their own streaming services to capture the maximum market. However, the question on your mind is – How much does it take to launch a streaming service like Netflix? This is a valid query and is much appreciated from our side. 

Indeed, the cost to start a streaming service may vary depending on the size and scope of the project, and it’s no secret that it requires a significant amount of investment. From content licensing and server costs to platform development and end-to-end marketing expenses, starting a streaming service is not for all. 

With that being said, let’s dive deeper into the costs associated with starting a streaming service and give us a chance to provide insights into what it takes to enter this ever-growing online video streaming industry and capture the maximum market share possible. 

What Makes It Important To Create A Streaming Service?

how to start a streaming service

As mentioned in the introduction part, creating a streaming service allows you to tap into the growing video streaming market, which is worth billions of dollars. Apart from this, by developing a streaming service, you have the opportunity to offer subscribers access to a vast array of content, including the latest movies and TV shows. 

Furthermore, to start your own streaming service you have the flexibility to tailor your content to a specific audience or niche. For instance, you can cater to people of specific genres or languages or create a streaming service that is geared towards kids who fall in the range of 10-15 years or so.

This customization will help you greatly in differentiating your online video streaming platform from others/competitors and building a loyal customer base. Also, starting a streaming service opens up opportunities to gather valuable data about your subscribers, which can help you improve your overall content and marketing strategies. 

Are You Planning To Start Your Own Streaming Services Like Netflix?

How To Start A Streaming Service – A Step-By-Step Guide 

Launching a streaming service necessitates a comprehensive understanding of the streaming market. In the following sections, we will provide a step-by-step guide on how to create a streaming service, including identifying the target audience, acquiring content, developing the OTT platform, marketing your service, and much more. 

how to create a streaming service

1. Know Who To Cast For Your Streaming Service

To make your own streaming service that resonates with your target audience, it’s crucial to identify your ideal subscriber base. This involves creating a comprehensive profile of your target audience, including their demographics, specific interests, and viewing patterns/habits. This information will guide you in accomplishing your content acquisition strategy. 

By understanding your audience, you can start a streaming service that delivers the content the end users want and offers an enjoyable user experience. In simple words, once you have identified your target audience, you can start acquiring content that will appeal to them, build your platform around their needs, and market your video streaming service effectively.

2. Establish Your Own Streaming Genre

Creating a niche or unique video streaming genre can largely help you stand out in this crowded video on demand market. To start a streaming service that caters to a specific audience, you need to find a unique angle or perspective that sets you apart from the competition. This can include a particular genre, language, or a specific type of content. 

Once you have identified your niche, you can start collecting or producing content that goes hand and hand with your genre and starts building your platform with your target audience in mind. All in all, we can say that creating a unique streaming genre will allow you to start a loyal following and differentiate your service from others.

3. Safeguard Your Content 

So, as previously mentioned, one of the vital elements of a streaming service creation is content acquisition. In other words, to create your own, secure video streaming platform with many movies and TV shows, you will need to obtain the necessary rights from studios, production houses, and independent filmmakers. Firstly, do not be too worried as it is not extremely difficult.

Nevertheless, the prices for the needed content can differ essentially depending on the rights to it and its popularity. Otherwise, you will be unable to attract as many subscribers as you want. Thus, ensure to make this step your absolute priority. To launch a streaming service, you need a decent content acquisition plan fitted to your resources and audiences.

4. Find Out Your Unique Streaming Identity

Carving a niche for yourself is very important to sustain in the streaming landscape. One way to achieve this is by creating a streaming service that has a strong brand identity. In order to launch your own streaming service, you first need to develop a brand that will resonate especially well with the target audience. 

It means creating the most authentic and recognizable logo, unique color scheme, and design in prophetic style to see your streaming service anywhere, anytime. Your online video streaming identity should also speak to your audience, content, and mission statement. These attributes will make users who have chosen your streaming service remember it forever.

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5. Maximize Your Revenue Beyond Subscriptions 

To run a profitable streaming service in the long term, you have to get as much revenue that is not subscription-based. This implies identifying the areas in which you can make money outside of the subscription fees and diversifying your profit channels, such as advertising, sponsorships, and selling merchandise, etc. Once you achieve this, you will have higher margins that will allow you to invest in making better films, more marketing, and developing your platform, thus expanding your streaming service in the long term. How to start a streaming service: attain certain savings goals and build your vision. 

6. Choose the Right Streaming Solution 

Starting and running a streaming service requires you to find a suitable and reliable video streaming solution provider. A streaming partner helps you develop and maintain your OTT platform while supporting you technically and in other matters like licensing and content exploitation and marketing. Therefore, you should meticulously consider their experience, reputation, and pricing limit to make the best decision during selection. 

Make sure the partner you choose to work with offers the services you need and has proven success in the industry as this will save the need for creating an entire audience for your content from scratch. 

Altogether, choosing the right solution provider helps you cater appropriately to your target audience and achieve your business goals.

7. Learn More About Streaming App Technicalities

From the above, it is evident that the technical aspects of online video streaming apps are critical to launching a successful streaming service. Your OTT platform should support the various network devices and offer a friendly user interface. 

The relevant technical information to consider during the video streaming applications include adaptive streaming, video content delivery network, and video encoding. To address the technical aspects, you may need an experienced developer to work behind the scenes to guarantee that the video streaming runs smoothly even when many watching it. 

8. Make Your Streaming Service Accessible to All

Finally, the last but the most important part. To create a successful streaming service like Netflix, you need to ensure that it is accessible to all. This means you have to ensure that your streaming service is available on different platforms and devices, like mobile, web, smart TVs, and other gaming consoles. 

You must also ensure that your content is accessible to people with disabilities. Yes, you read it right. You can do this by including closed captioning and audio descriptions. 

In a nutshell, making your streaming service accessible to all can help you broaden your audience and increase your overall revenue.

How Much Does It Cost To Start A Streaming Service?

The cost of starting a streaming service is not fixed. 

It greatly varies depending on factors like storage cost, infrastructure hosting, etc. 

However, it can range from a few thousand to millions of dollars depending on the complexity of the platform. 

So, creating a detailed business plan and consulting with experts is recommended to get a better estimate of the costs involved.

how to make a streaming service

Also, you will need to invest in creating a video streaming website, or app for your streaming service. For detailed information, let’s hover to the immediate next section of this article. 

Factors that Determine the Cost of Starting a Streaming Service

1. The Cost Of Storage And Hosting For Your Streaming Service

Another major cost of establishing a streaming service is the cost of storage and hosting. The amount of data you have to store and serve to your end users can be gigantic and necessitate a fully operating agency and infrastructure. 

You will need strong servers, cloud-based storage programs, and content delivery networks depending on the size of your viewers. 

So, you have to be ready to pay for the storage and hosting costs. It can ideally range from a few thousand dollars to a few million dollars per year, depending on the size of your streaming service and the number of users.

2. The Investment Required For Implementing A Set Of Features

In order to start a streaming service, you will need to provide your users with a set of features that differentiate your service from your rivals. These features can include personalized content recommendations, user profiles, social sharing, offline downloads, etc.

Nevertheless, implementing these features requires significant investment in terms of development, testing, and collecting user feedback. 

The cost of implementing them might range from tens of thousands to millions of dollars, depending on the complexity of the features and the size of your development team. To keep your costs in check, you can prioritize the features based on their impact on user experience and revenue-wise mixup.

3. The Cost Of Developing The Technology And Backend For Your Streaming Service

The critical cost associated with creating a streaming service is the cost you spend on technologies and backend development. You will have to spend a lot of money to create a good online video platform that can accommodate many users, provide a good streaming experience, and work well with your other offerings. In total, the cost of development of technologies and backend for your end-to-end streaming service can be quite high. 

It is crucial to invest in high-quality development teams and good infrastructure to create the best online video platforms that can compete in this already crowded space.

4. The Expense Of Custom Animation, Design, & UI/UX Elements

High-quality custom animation, design, user interface, and other user experience elements help to attract many users, they also take high competition. They are a fantastic way of making your streaming service different from others and delivering a unique and captivating user experience. Developing custom animation, design, and UX/UX elements can be a bit expensive. Some companies spend millions of dollars on these, but there are good ways to optimize these costs. Use already developed templates and design assets. 

Do a project that fits perfectly around and is possible to customize. Work with designers and animators – many ready to produce a custom component at a competitive cost.

5. The Cost Of A Developer’s Hourly Rate

If you have decided to create a streaming service, you will need to plan your expenses on a team of qualified developers. The hourly rate of developers may depend on the total work experience, up to a specific region they are based in, and the level of their proficiency in a certain area. 

However, the cost may be considerably reduced if you hire offshore developers or offer them work on a project basis to avoid full-time employment. 

Moreover, you can also develop your online video streaming service using low-code platforms, and this will reduce your development costs significantly.

Launch Your Streaming Platform with VPlayed 

Now at this point, you would have realized that it is expensive to create a streaming service, but everything we have to pay for: storage and hosting costs, technology development, custom design/animation costs, developer hourly rates, and even the investment needed to enable specific or extra features. But it can also be a money-making success if you know how to start a streaming service. You must determine who the target audience is, obtain a license for the content you intend on broadcasting, and how much will it cost to develop a robust platform where they may see your content such that there is no other such platform that they prefer.

While the initial costs may seem daunting, it is important to remember that it is an investment that can give multi-bagger returns in the long run. By prioritizing features based on their impact on user experience and revenue, leveraging existing design assets, and working with offshore developers, you can create a subscription streaming service that tops the competition. 

On a closing note, if you are looking for a reliable and experienced partner to help you create a streaming service like Netflix, then VPlayed would be the right choice. With years of experience in developing streaming solutions for clients across the globe, VPlayed has the expertise, technology, and resources to bring your OTT vision to life.

“Contact VPlayed Today To See How They Can Assist You in Launching And Growing Your Own Streaming Business.”

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Frequently Asked Questions (FAQ):

1. How Can I Create a Streaming Service Like Netflix?

Creating a streaming service like Netflix entails several steps. Firstly, you must decide what kind of content you wish to provide. Next, secure licensing agreements to access the content legally. Build a strong backend infrastructure. Develop intuitive apps for various platforms. Implement secure payment gateways. Last by not least, focus on marketing and customer acquisition techniques to attract more subscribers to your platform.

2. How Much Does It Cost to Build a Streaming Service?

The cost of building a streaming service varies substantially depending on aspects such as platform complexity, content licensing, development time, and more. However, a basic streaming service may start at a few thousand dollars, while a high end platform with original content and advanced features may cost several million dollars. 

3. What Are the Key Factors That Influence the Cost of Building a Streaming Service?

There are several factors influence the cost of building a streaming service. Firstly, the number of features required will increase development costs. Content licensing and acquisition expenses can vary based on the exclusivity and popularity of the content. Bandwidth and server costs increase with a larger user base and higher-quality video streaming.

4. How to Choose the Best Platform to Create a Streaming Service?

When choosing a platform to create a streaming service, consider the specific needs of your service. Evaluate factors like scalability, user-friendliness, and customization options. Look for a platform that supports multi-device compatibility and provides smooth streaming experiences. Consider security features to protect user data and content. Analyze the platform’s performance metrics and customer support to ensure smooth operation.

Vignesh D

Vignesh is an online video platform expert at VPlayed. I specialize in leveraging cutting-edge technology to optimize online video experiences. Outside of my professional endeavors, I enjoy delving into the latest advancements in movie streaming platforms and sharing my insights through blogging and discussions.


  1. Clifford Brewer says:

    Hello, we are searching for a platform to build our streaming service. Short videos (15-30min). Please let us know whether you need more details at this stage. Thanks

  2. Clayton Carson says:

    Hi, I want to build my own streaming service like Netflix. I have a digital library though that I would like to grant access to members so that they can watch content. I will also be adding each week new content in the form of interviews for people to view. How much does your service cost and how can I grant access to only registered members from my database? Finally, in the event that I want to have a live stream of an event, can we stream from the channel directly? Right now I have a subscription on and simply add the iframe into Inplayer and it streams directly. Please let me know what you think is the best for us? Thanks

  3. Brandy Bass says:

    Dear VPlayed, I hope you’re well. We are a film and television production company and we thought that it would be highly beneficial and an overall great idea if we had to start your own streaming service/on demand platform for our own content as well as content from various other sources. I was wondering if you could please tell me more information about what our various options are, how it all works, the price/cost structure to your software/platform and what the next steps are? Would the “White Label” platform be easier/cost-effective? Would we start our platform with content already attached? Any help would be gratefully appreciated. Thank you so much. Best Regards.

  4. Craig Wolfe says:

    Hello, I work with a company called Elevation Corporate Health and we are working on improving our online presence for our clients. One element of this is to improve our workout to make a streaming service . I’d love to see what VPlayed has to offer and if it would be a good fit. Thank you,

  5. Leon Gibson says:

    Hi my goal is to create a streaming platform so I add a wide range of media and some selected shows that are not available on the platform, how to create a streaming service such as netflix that I can be in control of what content is shown on the platform content like Netflix, Hbo, Hbomax, Amazon etc I plan to add to the platform I like the payment system Netflix has like coarse i not sure I have rights to ask a fee for my platform as im just distributing a bunch of other platforms content. I also like the idea of an app for tv and phone.I am unsure if i will eventually produce original content.

  6. Melody Curry says:

    Hello, I would like to Start my own streaming service with my fanbase of 1 million. I’m looking to have ads and video ads playing before each song streams.

  7. Cheryl Anderson says:

    Hi, looking for a streaming service provider to integrate live boxing matches into our mobile app.

  8. Meredith Walker says:

    I’m interested in starting a streaming service like netflix, prime and where do i need to start? Creating my own movies and tv shows streaming service like Netflix and Hulu

  9. Fannie Torres says:

    Hey! We are a start-up and want to launch a streaming service like Netflix. We want a subscription-based system with the special feature, that the users can decide themselves which movie they want to give part of their subscription money to.

  10. Patty Farmer says:

    Hello I’d like a demo and I’d also like to understand how much does it cost to start a streaming service to be created for me. Also how can your apps safeguard artist work from streaming farms ?

  11. Carmen Castro says:

    I’m want to launch Gary V’s streaming service. We are looking for a platform with high usage, subscription model capabilities, and live streaming options. How to start a streaming service like Netflix?

  12. Norma Haynes says:

    Dear Sirs, I want to know your prices for white-label VOD and streaming platforms. I don’t need to request a demo. I know your service & how much does it cost to start a streaming service? I hope to read you as soon as possible.

  13. Ellen Murphy says:

    Hi, I want to know how much does it cost to make a streaming service on all major social medial. Event Type: Live Virtual Concert, Interactivity, Target Audience 18 – 36 women, Ads and Promotions, Customer Support and Help Resources 3 participation 1, All Access Pass: $20 2, General Pass: $10 and 3, Show Pass: $3

  14. Mario Mckenzie says:

    Hello, I am looking to build a monthly subscription-based live streaming fitness service for my wife’s significant social media following. The keys I am looking for are a) ease of use (for us, as fitness content creators and for the subscribers), b) payment processing for subscribers located all around the world, and c) good quality video & how to create a streaming service. Thank you,

  15. Sherry Nguyen says:

    Hello, I am interested in a streaming service & how much does it cost to create a streaming service for a relatively small audience (600 people). It’ll be a pay per view option. I’d like to learn more about your service.

  16. Ada Harris says:

    Hi, I’m interested in speaking with someone in regard to launching a streaming service utilizing your technology. I was about to utilize a different company but after testing there system, i decided they weren’t a good fit. svod and avod end to end ott. Various content carousel sizes are a must (see attached. Apps online, apple tv, Roku, Fire tv, Android, Samsung, all mobile devices (I can send images to illustrate exactly what I want)

  17. Marlene Bowman says:

    Hello, I intend to run a movie streaming subscription based platform, similar to Netflix. Does your platform offer this kind of service? What is the cost implication. Is it a one time payment or a recurring. Regards

  18. Conrad Sparks says:

    Hi, I have a question regarding your streaming hosting service. I would like to inquire if the Vplayed website provides movies directly for streaming purposes. Specifically, I am interested in understanding whether I need to download the full movie separately and then add it to Vplayed, or if all movies are already available within the VPlayed website? Thank you

  19. Tracey Stevenson says:

    Hi, Please I need a free ott site where I will be able to create my own video streaming service without coding and you will be able to earn when I earn. I don’t have any budget for plans. I just want to create something of my dreams. Thanks.

  20. Ethel Hardy says:

    Hello my name is gabriel im looking to see the cost of streaming services for a video streaming platform for website, andriod and iphone app

  21. Guy Doyle says:

    Hi, To whom this may concern, I would like to obtain more information to create a streaming service and would like to provide a more formal outline of what we are looking for specifically via email. I look forward to hearing back from your team soon.

  22. Forrest Fields says:

    hey there, I want to know the budget to create your own streaming service, and to know all details

  23. Charles Floyd says:

    Hello, We have streaming Videos in the HLS format stored in the AWS buckets. We have had them encoded for DRM. We are looking for a streaming Video player that would be compatible with DRM. Can you please to us how much & how to start your own streaming service cost per month?

  24. Joyce Fletcher says:

    Hi, i would like to know how much does it cost to start a streaming service that can be featured on all types of smart tvs. how much does this cost to develop this

  25. Gretchen Newman says:

    Hello, I am looking to build a monthly subscription-based streaming services cost. The keys I am looking for are a) ease of use (for us, as fitness content creators and for the subscribers), b) payment processing for subscribers located all around the world, and c) good quality video. Thank you,

  26. Candace Welch says:

    Hi, I had always wondered about the cost of building a streaming service, and this step-by-step guide is a real eye-opener. It’s amazing how detailed you’ve gone in explaining each component’s expenses. Great work!

  27. Eugene Mitchell says:

    Thanks for breaking down the costs in such a clear and concise manner. It’s evident that creating a streaming service is no small investment, but your guide makes it easier to plan for every step of the way.

  28. Maureen Kim says:

    Hi, I’ve always wanted to start my own streaming service, but the costs seemed daunting. Your guide has given me a more realistic idea of what it takes, and I appreciate the transparency. It’s a valuable resource!

  29. Elbert Buchanan says:

    Wow, I had no idea there were so many factors involved in building a streaming service. Your guide provides a comprehensive overview of the costs, making it easier for aspiring entrepreneurs like me to plan and budget effectively.

  30. Richard Fields says:

    This step-by-step guide is incredibly informative and well-structured. The detailed cost breakdown helps demystify the expenses involved in building a streaming service. It’s a valuable resource for anyone considering this venture.

  31. Lauren Pratt says:

    Hi, We have a company, ISP, a video production company that makes low-budget movies for Haitian people, and recently we have created one film that will be live in the next few days on our platform. We don’t want anyone to download or copy our movie. Based on my research, I found out DRM can be helpful because it provides start a streaming service. Is there anything you can do?

  32. Moses Goodwin says:

    Hello, I would like to know how to create a streaming service like Netflix. I promise to make a very good movie streaming website like Netflix, Hulu and to get a good amount of people watching on my movie website. What will be cost to build video streaming website

  33. Terrance Ford says:

    Hi Team, kindly share the prices for building my own streaming service, we will be building platforms like Hulu or Netflix, most of the distribution will be in Pakistan and nearby countries.

  34. Nellie King says:

    Hello VPlayed, I’m trying to create a streaming service like Netflix to help deliver video content. Please inform me on pricing options. Thanks!

  35. Wade Meyer says:

    Hello. We are looking to create a streaming service that can be white labelled. We are trying to setup a platform which has features similar to Netflix and Amazon Prime and live broadcast capabilities for streaming live events. We will need a platform that supports various monetization methods. We came across Vplayed and want to know more details about it including pricing. Could you help?

  36. Lloyd Sutton says:

    Good day, I want to create a streaming service like Netflix in nature (but of course smaller to start) eventually I’d like to add the capability to watch with friends maybe a side by side view movie on one side chat window or later video window on the other.

  37. Sherman Nash says:

    Hi, I’d like to develop a streaming service and live streaming platform that is a hybrid between YouTube and Netflix. In short, it must enable users to create a profile and upload their own UGC which they can monetize via PPV or subscription model. Can your platform enable this? Is it fully customizable?

  38. Esther Bowman says:

    Hello, I need a platform that can host the mainstream streaming service like Netflix and Disney plus. It also needs a way for users to upload and monetize content. I should be able showcase user content next to mainstream apps. We need an App Store. There needs to be a floating menu overlay that can be accessed on any page for notifications, messaging audio/video chat, on the admin side I need to be able to customize and add and remove content. I want to add more options. Can we discuss about this?

  39. Carmen Kim says:

    Hi, We are going to start my own streaming service (hopefully with you !!) that could be considered a sort of Netflix of Psychology with contents related to wellbeing, stress management, cognitive empowerment, memory training, … we are already building about 1000 contents among with video, audio, text on the screen, … in particular we are creating a lot of 360 degree contents at 8k resolution (downgradable). We considered Vimeo and several other platforms, but we would like to understand your offer on a monthly/annual base. Please let me know and let’s talk by email, but I am also available for a call 😉

  40. Danielle Lawson says:

    Looking to build a streaming service similar to Netflix but with a very different content base. I tried building on most popular video streaming websites and find it not only difficult to navigate/setup, but also the layout and functionality are subpar. Would love to know how you compare and the cost to build video streaming website.

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