Vlad Dm
I bet you won't argue that the best evening pastime is just watching TV with your family on a cozy sofa. Beyond any doubt, modern people can entertain themselves with just about any TV program, movie, or series to make even the most boring evening interesting. Moreover, modern TVs have an Internet connection, so it is not necessary to browse channels for hours to find something interesting. Thanks to the Internet, you will always be able to find something worth your attention. But how can you choose an appropriate service to watch a movie in HD without annoying advertising?
Today Netflix is drawing TV viewers from all over the world. What is the secret of its popularity? Access to thousands of programs and movies and various service packages can satisfy any taste. Maybe, one day somebody will decide to create something similar to Netflix and add new features to beat the Netflix fever. Is it possible to do? Well, you won't find out until you try. Online streaming services like Netflix can become very popular. We will discuss how much it takes to create an app like Netflix and what should be undertaken.
How does Netflix streaming work?
Netflix is a subscription service for watching movies and series on various platforms. It is the largest video-on-demand service with an enormous database of cartoons and films. Having paid a monthly fee, clients get access to unlimited content. Netflix can function on many gadgets and run on various operating systems like Smart TVs, Windows Phones, iOS, Android, PC, Mac OS etc.
Netflix mobile app
Users can download and use this app for free during the first month. Then an automated subscription and purchases are integrated into the app. For example, if you subscribed via iTunes, payment is made via your iTunes account.
Netflix is constantly adding new content. But its features are more diverse than they may seem at first glance:
- You can list the content in an already existing library or use an integrated search feature;
- With the help of Cinematch system, Netflix can offer you new TV shows and films according to your preferences;
- The app makes it possible to create up to five separate profiles in a single account;
- It offers a lot of streaming videos.
Various profiles allow your friends or family members to have their own personalized Netflix experience that is built on the basis of their preferences.
You can also add your search categories to your app. You should rate films that you've watched, then the app will sort out movies that you like more precisely.
How to start a business like Netflix - a model to follow
I guess everybody understands that launching a new business resembling the Netflix model does not guarantee you immediate astonishing success. Of course, it will take time until you start earning money. In the very beginning, you will scale gradually. If your aim is to become a competitor to Netflix and create similar apps to Netflix, you must be ready to spend at least a few years on making your business profitable.
First, you need to create a Netflix-like service - with unique content. Nobody wants to pay for content that is come-at-able. But you should obtain a license for the content distribution, and then begin to develop your new business.
Monetization
Monetization of video platforms is performed on the basis of the subscription model, so you can suggest different plans for your viewers. For example, you can charge a monthly, quarterly or annual fee. But you shouldn't forget about free trial versions for a month or so in your Netflix-like apps. You can either propose access to the full library or only part of it to subscribers. It allows you to control monetization.
You must anticipate the following:
- Creation of plans for users
- Automated repetitive payments
- Free trial version
- Auto updating/discounts
- Video advertising
Furthermore, you should consider a multi-currency support system and integrate it with several payment gateways to allow subscribers to pay with their local currency.
Lifetime Value - its definition and importance
Any successful entrepreneur will tell you that you shouldn't be afraid of losing money in short-term prospect if you can earn more in long-term prospect. But before losing money, you should determine the lifetime value of your customers. Without it, you cannot optimize your profit. It is one of the key factors in the understanding how to start a business like Netflix.
Maximum increase of lifetime value
Following specific events and activities of customers, you will notice that the more active users are, the more they are likely to pay for services for a longer period of time. To increase your income, you should follow each client. Tracking statistics and customer behavior, Netflix managed to reduce the outflow of clients up to 4%.
Marketing expenses
A marketing campaign is a very good way for developing your business, but you shouldn't spend too much money without elaboration of your business model of the future app like Netflix. It is not enough just to determine the customer lifetime value.
You should understand the lifetime value of customers that come from various sales channels. It will help you make a decision as to how many clients you can obtain for each channel.
To sum up, the development of a streaming app like Netflix is expensive and painstaking work, so a good marketing strategy is a key factor for success and profit.
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Vlad Dm
