Cost of Creating a Video On Demand app

Cost of Creating a Video On-Demand App


Cost of Creating a Video On-Demand App

If you are thinking about creating a video on-demand app, considering the cost is essential. Video on-demand apps have become hugely popular in recent times. Binging has become a favorite activity of many, resulting in the OTT business making more profits than ever.

There are many reasons why you may want to create a video on-demand app. However, before you start, knowing how much it costs is essential to create a solid budget. In this article, we have explained in detail how to estimate the cost of creating a video on-demand app.

Reasons to Invest in Video On-Demand App

OTT and streaming are on an all-time rise. This has given a substantial boost to the video on-demand industry. The market is vast and is only growing. If you are still not sure, we have listed some reasons why you should invest in video on-demand below.

  • Popularity – In the USA, people spend an average of 100 minutes a day on video on-demand apps. Such apps are used in almost all types of households and are being operated by all members more or less equally. There are diverse types of content available on such apps, which allow different people to choose what they want to watch. This has led to the immense popularity of such apps, which is definitely a reason to invest in them due to the huge market potential.
  • User Behavior Analysis – One of the best reasons for investing in a video on-demand app is to take advantage of unlimited access to user behavior analytics. You can do your research on what is working for users and what is not. It will help you curate content that is in tandem with your audience’s needs. By utilizing user behavior metrics, you can create an app that engages users and makes them stay.
  • Revenue Opportunities – A video on-demand app presents you with many opportunities for revenue generation. Recurring customers can lead to a continuous flow of income. Apart from this, there are also various other ways to create revenue, such as advertisements, subscriptions, etc., which have been discussed in more detail below.
  • Data Acquisition – With your app, you can collect your data and process it in a way that provides you with insights as per your requirements. This will significantly reduce your dependency on third-party data. You can create your own customer base and marketing tactics that outside forces will not impact.

How Much Does it Cost to Create a Video On-Demand App?

While there is no exact figure that can encompass the complete cost of video on-demand app, there can always be an estimate which will help you build your budget. On average, the cost to create a video on-demand app can be anywhere between $15,000 to $30,000. However, there are various factors that impact this figure. If you are trying to create an app with more complex features such as multi-screen viewing, complex UI/UX designs, multi-language support, etc., the cost can shoot up to $50,000. 

Other factors that can impact your total cost include experience and the location of the developer, app design, the type of platform you want to release your app on, and so on. The cost of creating apps for platforms like Android and iOS can go up to $30,000. Hence, when budgeting for your app, ensure you are considering all possible factors to get a good idea of total costs.

Factors Impacting the Cost of Video On-Demand App

As mentioned, various factors can impact the cost of your video on-demand app. Some of the basic factors are mentioned below, which will give you a fair idea of how to estimate the cost of your budget.


  • Research – This is one of the most expensive factors that will impact the cost of your on-demand app. Research requires extensive data and data processing, which can be a costly affair. It also depends hugely on the complexity of your app and how much research each of its components requires.
  • UI/UX Design – Video on-demand apps are often quite complex, even though all they do is play videos. The UI/UX elements of your app will play a huge part in how people perceive it. Users prefer apps that are interesting yet easy to navigate. It can be a costly affair to develop such interfaces as they can be pretty complex. 
  • Testing – It is an essential aspect of app development which can come with significant costs. Testing and deployment can impact your budget because it takes a considerable amount of time. It includes various processes to ensure all the aspects of your app are working properly.
  • Launch – Launching your app in the market will require you to spend some money as well. Before launching, you have to ensure your app is in perfect condition. There are also listing fees on different platforms that you will have to pay in the form of yearly or monthly subscriptions.
  • Promotion – To attract users, you will have to promote your app. This can include partnering up with other apps to run your ads, reaching out to influential people to advertise your app, and shelling out money to have exclusive shows to attract more viewers. All in all, the costs simply do not end with the development, there will be more costs needed to run your app in later stages.

Ways to Monetize Your Video On-Demand App

While it can get costly to create a video on-demand app, it is a highly profitable venture. There are many ways in which one can monetize their app and make profits. Some of the ways in which you can monetize your video on-demand app are mentioned below.

  • Multiple Subscription Plans: You can provide your viewers with an option to subscribe to your app. Like Netflix, you can provide different plans with which users can access additional features of your app. Subscriptions are one of the most common ways of monetizing your app.
  • Pay Per View: This is also known as transactional video on-demand, in which users do not pay anything when they log into the app. They only pay for what they are watching.
  • Listing Content Fee: Premium listing is a popular method through which anticipation about a show is built. It entails the placement of a trailer before a show starts to increase its visibility. For such a listing, you can charge a high fee.
  • Advertising: There are many ways to place advertisements strategically on your app. Whether a user is downloading content or streaming it, ads can be placed in various ways.

To Sum Up

The cost of creating a video on-demand app may seem high, but the returns on it are quite high as well. The initial investment needs to be done carefully to reap benefits later on. However, once your app is launched, you can be sure it will be worth every penny you spend on it!

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