Cost to Create an OTT App – Complete Guide

The cost to create an OTT app varies due to many factors. In general, OTT app costs range from $50,000 to over $500,000. Platform choices affect costs. An OTT app for Android costs less than iOS, but developing for both platforms significantly increases the cost. More features like live streaming, subscriptions, and content personalization raise development costs. The amount of video, audio, and image content to host impacts server expenses. Outsourcing development requires less cost compared to an in-house OTT video app , though the quality depends on the development team. 

 

A sophisticated design with animation and interfaces pushes up costs, while a simple design is more affordable. Thorough beta testing and bug fixing before launch consume a major budget, while less testing can compromise the app experience. Continuous support, updates, and new feature integration after launch must be budgeted for app longevity. The storage space, bandwidth, and servers required to host and stream content add to expenses, with costs rising as users and data increase.

 

Keeping OTT platform development costs within budget requires prioritizing features, content, and design while ensuring core functionality and user experience are not compromised. 

 

What are OTT Apps?

 

OTT apps provide streaming media and communication services through the internet. They are known as “over the top” apps as they deliver content directly to consumers over the internet, bypassing traditional networks of cable TV and satellite.

 

OTT apps include popular streaming services like Netflix, Amazon Prime Video, YouTube, and many others. These apps allow users to watch movies and TV shows, live sports, kid’s content, and more on-demand, anytime and anywhere. Users can access OTT content through their smartphones, tablets, smart TVs, streaming devices, and gaming consoles.

 

Services offered by OTT apps are typically free to download but charge subscription fees for premium content. Some OTT apps offer free content supported by advertisements. The subscription fees are quite low compared to traditional cable TV and satellite subscriptions. OTT apps also provide more flexibility and freedom of choice in terms of content selection. Users can choose what they want to watch, when they want to watch, and where they want to watch.

 

The main drawback of OTT apps is the large amount of data consumed by streaming HD videos. Mobile data usage can go very high for heavy OTT users. However, most OTT apps have a feature to reduce data consumption by lowering video quality and bit rate.

 

The growing popularity of OTT apps

 

OTT apps like Netflix, Amazon Prime, and others are seeing rapid growth in popularity and usage around the world. The on-demand and flexible nature of OTT content is appealing to consumers who want to watch what they want when they want. Increasing smartphone and internet penetration is also fueling the growth of OTT apps.

 

The intense competition among OTT players has prompted them to spend heavily on acquiring and producing original and exclusive content. They are signing deals with popular actors, directors, and production houses to differentiate their content offerings. This has resulted in an explosion of new web series, films, and other exclusive content on OTT platforms. Consumers now have access to a wealth of high-quality, niche content catering to different interests.

 

Importance of Create an OTT App

 

The use of OTT applications as platforms for watching movies, TV shows, music, news, and other multimedia material has skyrocketed. The growth of OTT platforms has been phenomenal over the last few years due to factors like affordable data plans, wider internet access, and a plethora of exclusive content options. This trend is expected to continue in the foreseeable future.

 

This is why media and entertainment firms must have top-notch OTT app. A direct interface for users to access multimedia content that the corporation either owns or sources is provided by an OTT app. It aids in the delivery of material, the administration of subscribers, and the gathering of analytics and user data. All of this aids in streamlining corporate processes and customer service. A media organization may reach a wider audience by using an OTT app instead of more conventional distribution methods like cable TV, satellite TV, and movie theatres. Pricing and content marketing are areas where the corporation has more influence. 

 

The business may monetize its already-existing content collection through an OTT platform, in addition to producing and distributing fresh, unique content.

 

Consumers may now take advantage of OTT applications’ ease, cost, and new options. They are becoming an essential component of how consumers nowadays consume entertainment and digital information. For media companies that wish to remain current and competitive, creating an OTT app that matches the functions, and user interfaces, and contains selections of established OTT competitors has thus become essential.

               

Factors Influencing the Cost to Create an OTT App

 

Many factors influence the cost to create an OTT app for streaming media services. Some of the major factors are as follows:

• Platforms – Developers need to create apps for multiple platforms like Android, iOS, Web, Smart TVs, etc. Supporting each platform requires significant effort and resources, increasing OTT platform development costs.
• Content – The amount and type of content the app will host determines development complexity and cost. Rich content like HD videos, and VR/AR experiences are more expensive in OTT app.
• Features – Advanced features like live streaming, social media integration, personalization, content recommendations, etc. increase development costs.
• Security – Ensuring data security, user authentication and content protection add to development expenses.
• Design – Engaging UI/UX design, animation, and theme customization all influence app development costs.
• Technology – Using the latest technologies like AI, cloud computing and blockchain increases OTT TV app costs.
• Server requirements – The number of concurrent users and bandwidth requirements determines server setup and maintenance costs.

All these factors work together to determine the overall cost to create an OTT app. Startups typically spend anywhere between $40,000 to $200,000 while established companies may spend over $1 million for a fully developed OTT platform.

 

Basic Features and Their Cost Estimates

 

Developing even a basic OTT app with essential features can cost anywhere from $40,000 to $100,000 depending on requirements. Here are some basic features and their approximate cost estimates:

• Video playback – $5,000 to $10,000

This includes the ability to play back high-definition videos on the app.

• User accounts – $10,000 to $15,000

Allowing users to create accounts, log in, and save their data and preferences.

• Content library – $15,000 to $25,000

Organizing and displaying the catalog of movies, TV shows, and other content.

• Video search – $8,000 to $12,000

Enabling users to search for content within the app’s library.

• Video recommendations – $12,000 to $18,000

Providing personalized content recommendations based on user behavior.

• Offline viewing – $7,000 to $12,000

These basic features will provide users with a working OTT app experience but will be quite limited compared to full-fledged apps. Adding more advanced features in OTT app development like live streaming, social media integration, content subtitles, multiple device support, and parental controls will significantly drive-up OTT platform development costs. Proper testing, security, and server infrastructure must also be factored into the overall estimates.

 

Advanced Features and Their Cost Estimates

 

While basic OTT features can cost around $50,000 to $100,000, adding advanced features can easily push Video Conferencing App costs above $200,000. Some advanced features and their approximate cost estimates are:

 

• Live streaming – $30,000 to $50,000

Enabling live and on-demand streaming of shows, sports, and events.

• Social sharing – $15,000 to $25,000

Allowing users to share content and chat with friends within the app.

• Content subtitles – $12,000 to $18,000

Providing subtitles and captions in multiple languages.

• Multiple device support – $20,000 to $40,000

Creating responsive apps for different devices like mobile, tablet, TV, etc.

• Parental controls – $8,000 to $15,000

Allowing parents to filter and restrict content for children’s profiles.

• Advanced Search – $18,000 to $30,000

Providing comprehensive search capabilities across all content attributes.

• Personalization – $25,000 to $40,000

 

These more complex features require additional development time, sophisticated algorithms, robust server infrastructure, and a higher level of testing. OTT apps with a comprehensive suite of advanced features that match industry leaders can easily cost over $500,000 to develop. The pricing depends hugely on the OTT video app development company‘s experience, capabilities, and negotiation skills.

 

Backend Development Costs

 

The backend infrastructure required to power an OTT app can represent a significant portion of the total costs. Some of the major backend OTT platform expenses include:

• Content management system – A CMS to store, organize and serve videos and other media content can cost $15,000-$30,000 depending on features and scalability.
• Streaming server – Setting up a streaming server for live and on-demand video streaming requires $10,000-$20,000 for adequate bandwidth and storage.
• Authentication and authorization – User authentication, permissions, session management, etc. require $5,000-$10,000 worth of Video Conferencing App Development.
• Payment gateway integration – Integration with payment gateways for subscriptions and in-app purchases costs around $3,000-$5,000.
• Server infrastructure – Cloud servers from AWS, Azure, or Google cost $500-$1,000 per month. This adds up over the app’s lifespan.
• Push notification engine – Services like Firebase and Urban Airship charge $100-$500 per month for push notifications.
• Database management – Storing and managing user data in databases like MySQL costs around $3,000-$7,000 initially.
• Analytics – Google Analytics, Mix Panel, etc. cost $100-$500 per month for tracking app usage data.
• API development – If 3rd party APIs are used, they can cost $100-$500 per API in OTT app.
• Software licenses – Licenses for backend tools and frameworks can amount to several thousand dollars.

These backends live streaming app development costs mainly depend on the number of concurrent users, amount of content, security requirements, and third-party services used. They can easily run into tens of thousands of dollars for an enterprise OTT app.

 

 

Cost of Design and User Experience (UX)

 

The design and user experience of an OTT app plays a major role in its success. An intuitive and visually appealing interface can greatly enhance user engagement and retention. However, good design does not come cheap. Here are the main costs associated with the design and UX of an OTT app:

 

• UI/UX design – Professional UI/UX design services typically cost $50-$150 per hour. For an entire OTT app, design costs can range from $10,000-$30,000.
• Visual design – Creating visually appealing icons, graphics, themes and illustrations requires the skills of visual designers. Their rates range from $25-$50 per hour.
• UX research – Conducting user research through surveys, interviews, and tests gives crucial insight into audience needs and expectations. This can cost $5,000-$10,000.
• Wireframing – Creating basic layouts and designs for the app screens and flows requires the services of a wireframing specialist costing $25-$50 per hour.
• Prototype live streaming app development – Developing clickable prototypes that demonstrate designs interactively costs around $2,000-$5,000.
• Usability testing – Testing designs with real users to identify problems and improve the UX costs around $1,500-$3,000.
• Animation – Including subtle animations and effects within the app’s UI typically costs $2,000-$5,000.
• Content strategy – Planning the optimal structure, tagging, and displaying of content can cost $3,000 to $8,000.
• Accessibility – Ensuring the design is accessible to people with disabilities increases costs by around 15-20%.

 

Development Team Costs

 

A significant amount of the overall cost to create an OTT app goes into the salary and bonuses of the live-streaming app development team. The entire personnel expenditure is determined by the team size and the developers’ level of experience. Some estimates:

• Project manager – A project manager typically earns $60-$80 per hour. For a 6-month project, this amounts to $30,000-$45,000.
• UI/UX designer – A skilled designer earns $40-$60 per hour in OTT app. For a 6-month project, it costs around $24,000 – $36,000.
• Frontend developer – Junior developers earn $25-$40 per hour while Senior developers get $60-$100 per hour. Costs range from $30,000 – $100,000 depending on experience.
• Backend OTT video app– Server-side developers also earn anywhere from $25-$100 per hour. Total costs depend heavily on the experience level and complexity of the backend.
• QA engineer – Quality analysts earn $25-$50 per hour. For 6 months, it amounts to $15,000-$30,000, again depending on experience.

 

There will also be indirect costs like office space, utilities, hardware, software licenses, and tools. Benefits like health insurance paid time off etc. typically add 20-30% to the overall salaries.

The size and experience level of the team critically determines live streaming app development team costs. Larger teams with more senior developers can easily push personnel costs for an OTT app above $500,000 for a 1-year project.

 

Maintenance and Support Costs

 

Once an OTT app is launched, there are ongoing costs for maintaining, updating, and supporting the app. These post build costs can add up quickly and should be considered while planning the budget. Some key maintenance and support costs:

• Bug fixes – Issuing bug fixes, performance optimizations, and security patches requires the time of developers. The cost of video streaming app development depends on the number of fixes needed per version.
• App updates – Releasing new versions of the app with additional features or underlining platform updates requires full video streaming service development cycles. Costs can range from $5,000 to $50,000 per major update.
• Server and infrastructure costs – Costs of running and scaling servers, databases, CDNs, and other backend infrastructure continue after launch. They typically increase with the app’s user base.
• Content costs – Costs of acquiring, producing, and storing additional content for the app continue through its lifespan.
• Testing – Thorough testing is required for all app updates and bug fixes. Testing costs vary based on the number of test cycles needed.
• Analytics services – Fees for app analytics services like Google Analytics continue each month.

All these ongoing costs need to be budgeted appropriately to ensure that revenue from the app can cover maintenance expenses in the long run. Unsustainable maintenance costs can quickly drain the finances of a media company.

 

Marketing and Promotion Costs

 

Marketing and promoting an OTT app correctly is essential for success but can be an expensive proposition. Some of the key marketing costs involve:

• Paid app promotions: Paid promotions through app stores and third-party sites can cost anywhere from $500 to $10,000 or more initially.
• Social media advertising: Promoting the app through platforms like Facebook, Instagram, and Twitter requires a marketing budget ranging from $500 to $2,000 per month.
• Influencer marketing: Partnering with popular influencers and content creators’ costs between $500 to $5,000 depending on their audience reach.
• Traditional advertising: Advertising the OTT app through mediums like TV, print, radio, and billboards can cost thousands or even tens of thousands of dollars in video streaming app.
• Content marketing: Creating promotional content like videos, images, and blog posts requires a content marketing budget of at least $1,000 per month.

Marketing costs will be particularly high during the initial launch period but will need to be sustained on an ongoing basis to keep the app competitive and profitable.

 

Tips to Minimize the Cost to Create an OTT App

 

Start small and scale up. Initially build only the minimum viable product with essential features. Add more features gradually based on user feedback and revenues. This avoids incurring unnecessary upfront costs.

Leverage open-source tools. Use free and open-source frameworks, libraries, and tools wherever possible to reduce software license fees.

Outsource non-critical tasks. Outsource tasks like design, content writing, and testing to competent freelancers or agencies instead of hiring full-time employees.

Focus on efficiency. Implement processes and tools that help improve developer productivity and minimize rework. This cuts down on video streaming service development time and costs.

Negotiate rates. Discuss development budgets openly and negotiate rates with vendors, freelancers, and agencies to get the best possible deals in video streaming app.

Release iteratively. Release the app in iterations with only the most important features in each release. This allows for flexibility in adjusting costs based on revenue and feedback.

These strategies can collectively lower the live video streaming app development budget of your OTT app by 10-30% without compromising on quality. With care and planning, you can build a successful app at an optimized cost.

 

The Future of OTT Apps and their impact

 

OTT apps offering video and audio streaming are expected to see rapid growth, especially in developing markets. Rising incomes, cheap data plans, and the proliferation of smart devices will fuel this growth.

By 2024, the number of OTT video subscribers is projected to reach 1.1 billion globally. India alone will have 225 million OTT subscribers by 2024.

OTT platforms will become the primary way people watch TV shows and movies going forward. Traditional TV and cable TV subscriptions will decline significantly.

OTT players will invest heavily in creating original and exclusive content to differentiate their offerings and attract subscribers. This will expand the amount of high-quality programming available to viewers manifold in video streaming app.

Technologies like artificial intelligence, augmented reality, and virtual reality will be integrated into OTT apps to enhance the viewing and content discovery experience.

The rollout of 5G networks will enable higher-resolution videos with less buffering on OTT apps. It will open up opportunities for new immersive OTT experiences.

 

Conclusion – Cost to Create an OTT App

 

Developing a high-quality OTT application involves considerable upfront investment as well as ongoing costs. While basic OTT apps can be created for around $50,000, adding advanced features and infrastructure can push live video streaming app budgets over $500,000. Ongoing costs for maintenance, support, and server resources also require budgeting. However, a well-designed OTT platform with engaging content can help companies expand their reach, generate revenue and remain competitive. With careful planning and optimization of features, development teams can minimize costs and create an effective OTT

 

FAQ – Cost to Create an OTT App

What are OTT services?

 

Over-the-top media services are referred to as OTT. Through the Internet, OTT services provide users with streaming media content including movies, music, and games. They do not use conventional delivery methods like cable TV, satellite TV, or DVDs.

OTT services that offer streaming TV shows, movies, music, news, and sports include streaming applications like Netflix, Amazon Prime Video, and Disney+. Customers may use their smartphones, tablets, and streaming devices to access these OTT services. They provide lots of entertainment choices at reasonable subscription costs.

 

The primary distinction between OTT services and traditional media is that OTT bypasses conventional distribution networks in favor of sending material directly to users through the Internet. As a result, OTT services now have additional price options, pricing flexibility, and the capacity to provide personalized suggestions.

 

Why Do Customers Prefer OTT Over Traditional Platforms?

 

Customers prefer OTT media services like Netflix, Amazon Prime Video, etc. over traditional platforms like cable TV and satellite for several reasons:

• Affordability – OTT platforms offer much more affordable subscription plans compared to expensive cable or satellite TV bundles.
• Convenience – On-demand streaming allows customers to watch content anytime at their convenience.
• Device compatibility – OTT services are compatible with smartphones, laptops, and smart devices besides televisions.
• Huge content library – OTT apps provide access to a massive library of movies, shows, news, and content.
• Personalization – OTT apps provide personalized recommendations based on user preferences.
• Exclusive content – Many OTT platforms produce their original content exclusively for their platform.
• Ease of use – OTT services offer a simpler user experience compared to traditional TV interfaces.

 

What Types of OTT Services Are Presently Active in the Market?

 

Currently, there are several types of OTT services available in the market. Broadly speaking, we can classify them into Audio OTT, Video OTT, and Gaming OTT services.

Audio OTT services provide consumers with access to streaming music, podcasts, and audiobooks. Examples include Spotify, Apple Music, Amazon Music, etc.

Video OTT refers to online video streaming services. Popular video OTT platforms include Netflix, Amazon Prime Video, Disney+, etc. They provide access to movies, TV shows, and web series on demand.

Gaming OTT allows users to stream and play games without the need to download them. Google Stadia and Microsoft xCloud are two leading gaming OTT platforms that are becoming increasingly popular.

Depending on the type of media content they offer, different OTT services have emerged to cater to audience interests in video, audio, games, education, and communication. The market presently has a mix of all these types of platforms providing varied experiences to users.

 

How much is the cost of OTT App?

 

The cost to create an OTT app depends on several factors:

• The features and functionality – Developing basic features like video playback, user accounts, and content library can cost $40,000-$100,000. But advanced features like live streaming, personalization, and multiple device support can easily push costs above $200,000.
• The content – Hosting more HD videos, and VR/AR experiences requires more resources and expertise, increasing video streaming application development costs.
• The technical requirements – Requirements like content security, analytics, and cloud infrastructure determine the cost.
• The development team – The size, experience, and skill level of the developers, designers, and testers impact personnel costs significantly.
• The platform support – Creating compatible apps for Android, iOS, Web, and smart TVs involves extra video streaming application efforts for each platform, adding to costs.
• The server infrastructure – The number of concurrent users, storage space, and bandwidth needs determine server and infrastructure expenses.
• Maintenance and support – Ongoing costs for bug fixes, app updates, server uptime, and customer support also factor into budgets.