A Comprehensive Guide To Custom OTT Development

Today, more and more people watch TV shows and movies on various streaming services like Netflix or Amazon Prime, instead of traditional TV channels. These OTT (Over-The-Top) platforms provide more freedom and flexibility, which can fully revolutionize the user experience. In this article, we are going to talk about such apps, as well as the peculiarities of OTT platform development. That’s why, if you are thinking about launching a solution of this kind, you can find a lot of helpful tips in our blog post.

To begin with, let us explain the meaning of this term. It refers to the delivery of content, including video, audio, and other media, over the internet. This approach doesn’t rely on traditional distribution channels like cable or satellite television.
As a rule, OTT services can be accessed via applications or platforms on various devices, such as smartphones, tablets, smart TVs, and computers.

The interest in OTT services from the side of viewers of all generations is growing. And it is not surprising. Unlike traditional TV with scheduled programming, OTT platforms allow users to watch content on demand, at any time, and from anywhere with an internet connection. 

The global OTT services market is gradually growing. In 2023, it was valued at $59.90 billion. In 2024, it is expected to grow to $70.08 billion, while in 2032, this figure may reach the mark of $229.97 billion. It means that the CAGR for the period from 2024 to 2032 will be 16%.

The number of OTT subscribers is also increasing. While today, the number is around 2 billion, by 2026, it can hit the level of $2.25 billion.

The OTT landscape is rapidly evolving. What are the main trends in market development?

1. Growth of niche streaming services
2. Rise of ad-supported video on demand
3. Interactive and live streaming content
4. Focus on personalization
5. Stricter privacy regulations

While talking about OTT solutions, the majority of us will recollect video platforms. However, OTT app development is not only about building video streaming services. There are also OTT audio, VoIP (OTT voice calling), and messaging solutions. Actually, the majority of us use such apps even without knowing that they can be included in such categories. WhatsApp or Facebook Messenger are good examples of OTT solutions. They deliver messages over the internet and to use them, people should have a relevant app on their devices.

When it comes to OTT video apps, there are also several types of them.

• Subscription Video on Demand (SVOD). In this case, users pay a recurring fee to access a vast library of video content.
• TVOD (Transactional Video on Demand). The payment is taken for individual pieces of content, such as a movie, TV show episode, or special event.
• AVOD (Advertising-based Video on Demand). This model presupposes that users can access video content for free, but the service is supported by advertisements. 

For those who are planning an OTT video streaming app development project (or a similar one), it is vital to understand the key market standards for such solutions.

• User Interface (UI) and User Experience (UX): It’s necessary to offer a clean, user-friendly interface that is easy to navigate. This should include simple menus, well-organized categories, and easy-to-use search and filtering options.
• Content Management System (CMS): A robust CMS provides clear categorization, tagging, and organization of content. As a result, managing and updating the content library becomes easier.
• Content Delivery Network (CDN): A CDN ensures that content is delivered efficiently across the chosen regions. A well-designed and implemented CDN will reduce latency and improve load times by caching content on servers close to the user.
• Monetization Options: You should consider how to monetize your platform and introduce the relevant functionality. Options include subscription models, pay-per-view, ad-based models, or hybrid approaches.
• Analytics and Reporting: These tools give you access to detailed insights into user behavior, including viewing habits, content preferences, and engagement levels. Such insights help improve recommendations and adjust your content strategy to better align with your audience’s interests.
• Multi-Device Support: It’s recommended to launch either dedicated or cross-platform apps, allowing users to access your services from various devices and operating systems, including iOS, Android, web browsers, smart TVs, and gaming consoles.

The process of custom OTT app development is usually organized the following way.

1. Ideation and identification of your niche. You should clearly define your business needs and the preferences of your target audience.
2. Content inventory development. Content is a key element of OTT platforms. That’s why you should attentively think about the sources where you can get your content or how you will create it.
3. Choice of future features. It’s necessary to determine the essential features of your app (such as user profiles, content search, recommendations, etc.), as well as advanced functionality (social sharing, content rating, commenting. etc). 
4. Definition of your business model. Before starting an active phase of OTT platform development, you should make up your mind on the way to get revenue.
5. Hiring the right tech partner for your project. You should find a reliable OTT platform development company, like Cogniteq, that will be responsible for building your solution. Together with its experts, you will choose the best tech stack and the most suitable approach to development. Designers will create user interfaces, while developers will build the desired functionality and make the required integrations. It’s also very important to make ensure that your platform will be properly deployed and further maintained so that users cany their interaction with it.

The cost of development is one of the most important factors that businesses need to consider. Budget allocation should be well-planned in advance to avoid the need to freeze a project or reduce the number of desired features.

Nevertheless, it is impossible to make accurate predictions for the required investment without analyzing a range of parameters. What factors influence the cost of OTT app development services?

• Complexity of your solution: More complex products will naturally be more expensive. The development of advanced features requires more time, effort, and resources.
• Content delivery infrastructure: The integration of a complex content delivery network (CDN) can add to the cost, depending on the regions you wish to target.
• Device compatibility: The cost depends on whether OTT solutions are built for a single platform (iOS or Android) or multiple. Adding web-based streaming, along with mobile apps, will also increase development costs.
• Security measures: The protective measures you want to introduce can impact the cost. End-to-end encryption, secure data storage, and digital rights management (DRM) tools for protecting content against piracy can be costly additions.
• Monetization strategy: It’s vital to consider your monetization approach during the planning stage of OTT platform development. For example, implementing an ad-supported model and integrating it with ad networks will lead to additional expenses. A pay-per-view (PPV) model requires additional payment gateway setups and secure content access mechanisms, while a subscription model entails developing a recurring payment system.
• Third-party tools and services: Third-party solutions, like video players or analytics tools, are often used in OTT app development and come with licensing fees that need to be considered. Additionally, ongoing costs for cloud services related to storage, streaming, and computing should not be overlooked.

Therefore, you can only get reasonably accurate estimates once you choose an OTT app development company and share your requirements.

The company’s experts will analyze all the necessary resources and estimate the cost of each stage, including discovery, planning, UI/UX design, frontend and backend development, integration of third-party services, testing, and deployment.

When working with a professional team like Cogniteq, you can expect to get the best solution that fits your budget. If necessary, developers can also offer ways to reduce expenses without sacrificing quality.

Off-the-shelf OTT solutions may look appealing at first glance, providing businesses with an easy and fast way to enter the streaming market. However, such solutions come with a range of limitations in terms of scalability and unique user experiences. That’s why custom OTT platform development is often a better choice. Let’s explore the benefits in more detail:

• Unlimited scalability: Even when you are just entering the market, you should plan for future business expansion and user base growth. This will inevitably require platform scalability, and with custom development, it’s possible to achieve this seamlessly.
• 100% alignment with the needs of your audience: When building your own solution, you can fully tailor it to the preferences and interests of your potential users. The better your platform meets their needs, the higher loyalty and engagement you can expect.
• Flexibility and control: With a custom platform, you have full control over its performance, security, and functionality. You can update and enhance it whenever you choose. In contrast, with ready-made solutions, you are entirely dependent on the vendor’s roadmap.
• Competitive advantage: Custom OTT app development allows you to experiment with innovative features that appeal to your audience. You can introduce AI-driven recommendations, blockchain-based content distribution, immersive experiences with VR/AR tools, or interactive elements, helping your platform stand out from similar competitors.
• Regulatory compliance: Custom OTT platform development enables you to implement measures that ensure compliance with industry-specific regulations in your jurisdiction. This could include content ratings, parental controls, and accessibility standards, all in accordance with relevant laws and regulations.

The success of any custom OTT app development project greatly depends on the skills and expertise of the team behind it. That’s why, if you are thinking about launching your own solution, you should approach the process of choosing specialists with careful attention. Our team works on projects across various domains, and OTT application development is one where we possess the required knowledge and experience. This makes Cogniteq an excellent option for you.

One of the projects we worked on involved the modernization and enhancement of a Smart TV app for a streaming content provider. Our developers were hired to enhance the Android application, ensuring seamless access to a wide array of streaming services for users.

The scope of the project included a range of tasks, such as integrating third-party APIs to allow the platform to aggregate content from multiple providers. Additionally, we implemented seamless user authentication and authorization, analytics and performance monitoring tools, and a comprehensive subscription management system.

The application was optimized for the large screens of Android TVs and remote control navigation. Our work also included developing software for the firmware of set-top boxes, which were branded for the platform.

We successfully completed the assigned tasks, making the platform more user-friendly and intuitive. After the project’s conclusion, our developers continued working on further app improvements.

If you are planning to launch or modernize an OTT solution, do not hesitate to contact us. We are always ready to join your project as an OTT app development company. Our experts will consider your inquiry and offer the best solution to meet your needs.