How Much Does it Cost to Develop OTT App in 2024
The industry of OTT applications is blooming. Let’s be honest: we all found ourselves glued to the screen by Netflix or Disney+ show – letting the world wait for a couple of hours. The popularity of OTT applications is best reflected by numbers. According to Statista’s report, the global consumer spending on OTT applications in 2022 reached 120.5 billion and is predicted to surpass 138 billion dollars by 2027. But what stands behind catchy content? Months of planning, development, and testing, fueled by tens of thousands of dollars.
In this blog post, we’re speaking of money. To be more precise, we’re diving into the cost of developing OTT application in 2024 exposing key components that shape the price of building a custom Over-the-Top platform.
What are OTT Applications
Let’s start with a clear definition of what is called an OTT app. Over-The-Top (OTT) applications are streaming services that offer content directly over the internet, bypassing traditional distribution channels such as cable or broadcast TV. With their growing popularity, these platforms offer a diverse range of entertainment and information options to viewers.
How Much Does it Cost to Build a Custom OTT Application
While we look at the cost of OTT app development in 2024 – there are several factors to consider. Here are the key components contributing to the price of building Over-the-Top application.
Features and complexity
An app’s cost escalates with the addition of features and functionalities. Apart from basic features such as user profile, payment gateway integration, screen mirroring, etc, a competitive OTT app requires some advanced functionality. Advanced user interfaces, streaming quality options, multi-language support, and user analytics are some aspects that require more development time and resources.
App platforms to cover
The cost of building OTT app depends on the range of devices and platforms that the applications should accommodate. On the one hand, building a cross-platform app from the very beginning seems a waste of money, but in the long run, you’ll spend even more on additional testing and customization to each device and operational system individually.
Development team
The decision between an in-house development team and outsourcing to freelancers or agencies can significantly impact the budget. While an in-house team provides consistent quality and alignment with company culture, it is generally more expensive than outsourcing, which offers cost efficiency but may pose challenges in communication and quality control.
When weighing the options between an in-house team and outsourcing, it’s worthwhile to consider companies like Perfsol. Their dedicated teams not only align with your cultural and quality benchmarks but also bring the cost-efficiency of outsourcing without compromising on communication or quality control.
Content management system (CMS)
The chosen CMS can significantly impact the cost. Proprietary CMS solutions tend to be more expensive but offer greater customization options, while open-source CMS solutions are generally more affordable but may offer less flexibility.
Location of Development Team
Costs vary greatly based on the development team’s location. For instance, developers in Eastern Europe may charge significantly less than their Western counterparts due to different economic and living conditions.
Sure, these are not the only factors to consider. Marketing, content acquisition, advertising, and ongoing maintenance play their role in shaping the cost of OTT app development.
Regarding the abovementioned, here’s a quick and very approximate breakdown of potential spending:
MVP (Minimum Viable Product): $25,000-$45,000
Basic OTT app: $80,000-$160,000+
Netflix-like platform: $65,000-$75,000+
To sum up, the cost of developing an OTT app in 2024 is shaped by a multitude of factors, from the complexity of desired features to the location of your development team. Whether you aim to compete with giants like Netflix and Disney+ or carve out your niche, understanding and planning for these costs is paramount to your app’s success.
