Handbook for VOD App Development: Features and Costs

Last updated on August 22nd, 2024

Imagine a world where the hassle of dealing with cable providers, lengthy channel lists, and disputes over the remote control is a thing of the past. In this world, entertainment is at your fingertips, offering endless access to binge-worthy shows and the latest documentaries. This is the magic of developing a Video-on-Demand (VOD) app. The rise of VOD has revolutionised entertainment in the digital age, as traditional television gradually declines. With a projected compound annual growth rate (CAGR) of 13.0%, the global Video on Demand market, valued at $146.6 billion, is set to expand significantly from 2023 to 2028. As a result, VOD is becoming the hottest topic among investors.

If you’re interested in creating your own VOD app, make sure to read this blog post thoroughly. Get ready to embark on this exciting journey; you only need a few simple steps to create your very own VOD app. Let’s begin!

What is a Video On Demand App?

A service that delivers video content is known as Video-On-Demand (VOD). This method of enjoying user-preferred video streaming has gained immense popularity in recent times. It allows viewers to watch movies whenever and wherever they wish, requiring just a simple click or tap. You may decide to incorporate video streaming into your existing VOD app development, or you could opt to publish your own videos through this process. Whichever route you choose, a robust video streaming platform will possess the essential technologies and features necessary for success. Additionally, it’s crucial to implement a video monetization system that aligns with your specific needs.

Also Read: Top 20 free Live Streaming Apps

How Does Video-On-Demand App Work?

Video-on-Demand (VOD) apps have transformed our viewing experience, providing a level of flexibility that traditional television cannot match. Gone are the days of adhering to fixed schedules; VOD allows users to choose what they want to watch and when they want to watch it. Below is a step-by-step explanation of how a VOD app operates, as detailed by an entertainment app development company.

1. Download and Install

Begin by searching for the Video-On-Demand app you’d like to use on your device’s app store for iOS or the Play Store for Android. Once you find the app that suits your needs, proceed to download and install it on your device.

2. Sign Up or Login

Most VOD applications necessitate that users either create a new account or log in with an existing one. This process typically entails supplying your email address and setting up a password for access.

3. Browse Content

Once you’re logged in, take some time to explore the app’s interface and browse through its extensive video library. You can look for specific titles using the search function, delve into various genres or categories, and check out personalized recommendations tailored to your viewing habits. This user-friendly navigation makes it easy to find content that interests you.

4. Select and Play

Once you’ve located a video that piques your interest, just tap on it to begin watching. The app like Hurawatch, will commence streaming the content, allowing you to utilize the playback controls to pause, rewind, or fast-forward as desired.

5. Enjoy and Control Playback

Utilize the on-screen controls to manage your viewing experience by pausing, rewinding, or fast-forwarding through the content. You can also adjust the volume to your preference and enable subtitles if the option is available. If the app offers this functionality, you have the convenience of resuming playback from your last watched position, making it easy to pick up where you left off.

Future Predictions and Projections of VOD 

• By 2024, the global video-on-demand business is expected to generate $182.40 billion in revenue.
• Following an annual growth rate (CAGR 2024-2027) of 8.27%, the market volume is projected to reach $231.50 billion by 2027.
• The United States is anticipated to lead globally in revenue generation, with a projected income of $80.3 billion in 2024.
• By 2027, the video-on-demand industry is expected to attract approximately 3.4 billion consumers.
• User penetration rates are expected to increase from 38.3% in 2024 to 43.2% by 2027.

Why Must You Develop a Video-On-Demand App?

The financial opportunities within the video-on-demand (VOD) sector are significant. Similar to various regions in the United States, developing areas are progressively embracing the internet and smartphones for movie viewing. Consequently, investing in tailored VOD app development is a smart move, especially considering the rapid growth of this industry.

1. Booming Market 

With a compound annual growth rate (CAGR) of 10.66% expected throughout the projection period, the Video-on-Demand Market size, anticipated to be $115.55 billion, is forecasted to increase to $201.74 billion by 2029. This signifies a substantial and growing audience for an app like Netflix offerings.

2. Shifting User Behavior

The surge in video-on-demand (VOD) subscriptions is closely linked to the increasing prevalence of smart TVs and mobile devices. As consumers increasingly opt for on-demand entertainment, VOD applications have become a preferred choice. Recent research indicates that only 34% of American consumers are satisfied with their current cable TV subscriptions, whereas a significant 77% appreciate the flexibility and variety offered by VOD app development services.

3. Fierce Competition  

The market, while promising, is also highly competitive. Conversely, developing social media applications that integrate premium content and showcase a unique selling proposition (USP) can help establish a niche and cultivate a loyal user base.

4. Diverse Business Models

VOD app development services also offer avenues for financial independence. With the implementation of subscription models, pay-per-view options, or a combination of both, you can optimise revenue potential while catering to diverse consumer preferences.

5. Long-Term ROI     

While developing a successful video-on-demand app requires a substantial initial investment, a thoughtfully crafted application has the potential to generate considerable profits over time, especially in light of the dramatic growth in the VOD market.

7 Major Steps of VOD App Development 

This is a common question that many individuals seek answers to. Developing a successful video-on-demand (VOD) application requires meticulous planning, precise execution, and continuous innovation. A leading live streaming app development company outlines the key steps involved in creating an effective VOD app.

1. Define Audience and Niche 

To begin your app development journey, it’s essential to ground your approach in thorough research rather than assumptions. Understanding the genuine needs, perspectives, and expectations of your target audience is crucial. Plan user interviews or discussions to uncover any initial challenges related to VOD app development. Collaborate with a video streaming app development services provider to explore various content categories, such as sports and news, video games and cartoons, personal content, educational resources, live events, meetings, and conferences. Gathering early feedback will provide invaluable insights, allowing you to refine your vision. Additionally, consider establishing a group of dedicated beta users to test your concepts and provide early input.

2. Determine Monetization Strategies 

Having a video-on-demand (VOD) app ultimately aims to monetize the platform and generate income. The three most common approaches for making money through VOD app development for Android and iOS are:

• Paid applications that charge users a fee upon downloading the app.
• Premium applications that offer limited functionality for free, with additional features available for purchase.
• Displaying advertisements within the app to generate revenue from commercials.

3. Study the Requirements of VOD App        

To ensure the success of your VOD app, it’s important to incorporate specific key qualities.

• Internet Connectivity: The performance of on-demand content streaming is significantly influenced by internet speed. A minimum of 2 Mbps is often necessary for streaming standard-definition movies, while higher speeds are recommended for platforms like YouTube, which provide higher quality streams.

• Computing Architecture and Cloud Hosting: Leveraging cloud services is essential for easy access and storage of video content. Building your platform on scalable cloud infrastructure from the beginning prevents complications related to data migration later in the development process.

• Network: Although video streaming websites may not experience immediate growth, they eventually will scale. Implementing a Content Delivery Network (CDN) is advisable to enhance the efficiency of your VOD service. This approach, in conjunction with live streaming solutions, is an effective way to manage high web traffic loads.

4. Select a Trusted Platform       

When choosing the right platform for hosting and storing your VOD content, it’s essential to consider partnering with a reputable mobile app development company. While cost is often a significant factor, it shouldn’t compromise the quality of your service. I

nvesting a bit more upfront can lead to increased traffic and enhanced performance for your video streaming website. Look for a VOD app development company that possesses strong video streaming expertise and a solid understanding of the industry to ensure that your platform meets the highest standards.

5. Design User Interface

In addition to selecting an appropriate video-on-demand streaming solution, it is crucial to focus on creating an outstanding UI/UX for your VOD application. Given the highly competitive nature of this sector, the success of your app greatly relies on its design and overall user experience. Therefore, investing in an appealing UI/UX design is essential for developing a VOD application. It’s important to prioritise simplicity; opting for a straightforward interface will prevent confusion and enhance user satisfaction.

6. Build & Test the MVP  

While you may have countless ideas swirling in your head for your VOD app development, employing an MVP (Minimum Viable Product) approach proves to be more effective. An MVP is a streamlined version of your original application, featuring all essential functionalities. This foundational tool allows you to gather user feedback more easily. As such, collaborating with a mobile app developer can help you swiftly create an MVP app that meets your initial objectives.

7. Final Launch   

Finally, it’s time to launch your VOD app on the app stores. Before proceeding, ensure that you’ve completed all items on your pre-launch checklist. This will help you confirm your readiness for the app’s release and verify that no issues remain. Once your app is live, monitor its usage patterns, including peak login times and user feedback. This data will allow you to identify opportunities for improving your VOD software development, making it even more effective and user-friendly.

Read More: Top 10 Best Live Streaming Apps to explore

Must-have Features of VOD App Development

When establishing a business for your VOD app, it’s crucial to understand how your users prefer to consume video content. Analyzing their viewing habits will guide you in determining the essential features to incorporate, ensuring that your streaming app provides a top-notch experience and maximises your return on investment.

1. User Panel      

2. Admin Panel    

Best 5 VOD Applications in the Market

The video-on-demand market is proving to be far more expansive than previously imagined, presenting significant opportunities for growth. By 2024, approximately 84% of individuals in the United States are expected to engage with online videos, with around 236 million people transitioning to digital content. This surge in viewership indicates a highly competitive landscape, particularly as leading video streaming applications continue to dominate the VOD space. As the market evolves, businesses must navigate the intense competition fueled by this substantial potential for expansion.

VOD vs. OTT: A Comparison Table

If you’re new to this industry, you may be curious about the key distinctions between the two. Essentially, VOD features pre-recorded content, while OTT encompasses both live and on-demand programming. Let’s take a look at the comparison table below that outlines the differences between OTT and VOD, as presented by a podcast app development company.

How Much Does It Cost To Develop A VOD Application?

The budget for developing a VOD application can vary significantly based on several factors, including the location and expertise of the developers, as well as the complexity and number of features you wish to incorporate. Generally, the cost for a basic video streaming application ranges from $10,000 to $15,000. However, if you require more advanced functionalities—such as support for multiple languages, multi-device compatibility, and sophisticated UI/UX designs—the costs can rise to as much as $25,000. This increase is attributed to the need for a robust backend infrastructure and ongoing support for seamless data streaming, which are essential for delivering an optimal user experience. Below is a summary table encapsulating these aspects:

Suggested: How Much Does it Cost to Create An App

How To Monetize A Video-On-Demand Application?

Many business owners consistently seek innovative methods to generate revenue, often starting their journey before they fully understand how to create a mobile app. To ensure profitability in VOD app development, entrepreneurs typically invest their own funds. They commonly employ three primary revenue strategies, often integrating two or three models simultaneously to mitigate risk and safeguard their profits. Let’s explore these approaches in detail:

1. Subscription Video on Demand (SVOD) 

Users of this widely adopted model pay a recurring fee, either monthly or annually, to gain unlimited access to a collection of content. Examples include platforms like Disney+, Hulu, and Netflix. This approach is particularly effective for services boasting a large library of premium content that users are eager to explore.

2. Ad-Supported Video on Demand (AVOD) 

While viewers encounter advertisements before, during, or after the content, this model allows users to access materials at no cost. Revenue is generated from companies that purchase advertising space on the platform. This strategy is ideal for services with a limited content library or those trying to attract a broad audience, particularly for shorter content. A prime example of this approach is the free version of YouTube.

3. Transactional Video on Demand (TVOD) 

Users incur a fee to either rent or buy individual recordings or events within this model. This can be an effective option for premium content such as live sports, concerts, or new movie releases. Platforms like Apple and HBO Max (for movie rentals) exemplify this approach, catering to those looking to access high-demand content on a pay-per-view basis.

4. Hybrid Model     

Both of these models are utilized across a variety of devices. A hybrid app development platform might, for example, offer a complimentary tier that features advertisements, a premium tier that provides an ad-free experience and exclusive content through a membership, and the option for users to purchase or rent specific movies.

Let’s Build A VOD Application Within Your Budget!

In conclusion, it’s clear that developing a VOD app presents an exciting and lucrative opportunity for entrepreneurs. To maximize the potential of on-demand video content, business owners should focus on providing users with seamless access to an extensive array of entertainment choices while exploring diverse monetization strategies. Seize this opportunity and embark on your journey to create a VOD application. Collaborate with a reputable OTT app development company that aligns with your audience’s needs and business goals to craft innovative VOD solutions infused with AI capabilities. If you already have a vision for your VOD app, don’t hesitate to schedule a free demo to kickstart your path to success in the video-on-demand landscape!

FAQs

 Q1. How Long Will It Take To Create A VOD App?  

The duration for developing a VOD application varies based on the specifics and intricacy of your project. For instance, if you opt for a straightforward VOD app solution, the development process may take around 2-3 months. However, should you choose a more complex VOD application, the timeline could extend to 8 months or even longer.

Q2. How Much Does VOD App Development Cost? 

The cost associated with creating a video streaming application, or VOD, typically range from $10,000 to $25,000. However, the final cost can fluctuate depending on your specific project requirements. For instance:

• Basic VOD app – $10,000 to $15,000
• Moderate VOD app – $15,000 to $20,000
• Advanced VOD app – $25,000 and above

Q3. How To Make Money From Your VOD Platform? 

You can generate income from your VOD platform by implementing various monetization strategies, including:

• In-app purchases
• Advertising models
• Subscription services
• Sponsorship agreements

Q4. What Are the Types of VOD Apps?  

There are primarily three categories of VOD applications:

• Subscription VOD
• Transactional VOD
• Ad-supported VOD

Q5. What Are the Benefits of Custom OTT App Development Solutions? 

You can gain numerous benefits from custom OTT app development solutions provided by a top OTT app development company like iTechnolabs, such as:

• User Engagement: Custom solutions foster better interaction with your audience.
• Accessibility: These apps ensure seamless availability across various platforms and devices.
• Transparency in Data: Custom OTT apps offer enhanced data openness, allowing you greater insight into user behavior.
• Robust CMS Video Player: Experience a durable content management system that supports video playback on all devices.