Know the OTT App Development Cost in 2025

The demand for personalized and on-demand media content has skyrocketed with the advent of OTT platforms like Netflix, Apple TV, and more. With the evolution of technology, consumer user preferences have changed. Therefore, OTT apps have become very popular in the media and entertainment sector. Due to this, entrepreneurs like you are investing in OTT app development.

Research shows the worldwide OTT market size is projected to grow sales around $434.5 billion by the end of 2027. Isn’t this data enough to convince you to build an OTT app? But before starting the project, you need to know the OTT app development cost!

Thus, this blog will cover everything from cost, factors, key features and monetization strategies for an amazing OTT app development solution.

So, let’s begin!

Table of Contents

What is an OTT App?

OTT apps provide video content to your smartphone, tablet, gaming console, or smart TV using the internet, rather than through traditional cable TV. Well-known OTT services include Netflix, Amazon Prime Video, and Hulu.

These apps allow you to stream videos and live events instantly on your preferred devices. If you want to watch a movie, join a yoga class, or take an online cave diving course, you can do so anytime and anywhere. So, if you want to develop an OTT application, you can consult with a mobile app development company.

Future Predictions and Projections of OTT Service

Revenue in the global OTT Video market is expected to hit $316.40 billion in 2024.
It is projected to grow at an annual rate of 6.98%, reaching a market volume of $443.30 billion by 2029.
The largest segment in this market is OTT Video Advertising, which is forecasted to be worth $191.40 billion in 2024.

Most of the revenue will come from the United States, totaling $133.7 billion in 2024.
By 2029, the number of users in the OTT Video market is expected to reach 4.9 billion.
Netflix leads as the largest OTT video provider globally, with over 240 million paying subscribers.

How Much Does It Cost To Develop an OTT App?

The answer to this question cost to develop mobile app depends on your specific needs. The OTT app development cost, customized for your business, involves many factors that need to be taken into account.

Generally, the cost to develop an OTT app typically ranges between $10,000 – $25,000, depending on the features you integrate. Let’s now look at the table of OTT app development costs.

App Complexity	Costs
Simple OTT App	$10,000 – $15,000
Medium OTT App	$15,000 – $20,000
Complex OTT App	$25,000+

Besides you can calculate the cost to Build an Instant OTT App with the below formula.

Total OTT App Development Cost = Developer’s Hourly Rate * Development Time

Now that you know the cost of developing a mobile app for OTT, it is time to consult with an Android app development services provider. They will provide a detailed estimation of OTT app cost.

Factors Affecting the OTT App Development Cost

Now that you know the cost to develop an OTT application, it is time to check out the crucial factors. So, let’s have a look at them:

1. App Functionality

The key factor that affects the cost to develop an OTT app is the complexity of its features. If the app has many complex features, the cost will rise significantly. However, you can reduce the development cost of OTT iPad App Development solutions. .

It includes several essential features like multi-language support, user profile enhancements, social tools, screen sharing, payment options, and content management.

An MVP will assist you in testing your idea and collecting feedback to improve the app. It would be best to opt for an MVP that also accelerates the OTT development process.

2. Platform and Devices

Many platforms and devices are available for the best OTT apps, and it’s important to use them to ensure a smooth experience for your audience. If you develop individual apps for Android, iOS, web, desktop, and TVs, it can be quite expensive.

It needs another framework for customization and testing the app on every platform. This also makes developing the OTT platform take longer.

You can create an instant OTT app for single apps for each platform that can be costly. So you might want to consider building a cross-platform application.

They can offer improved performance and focus on user experience. While various screen sizes and resolutions can influence the cost to develop instant OTT apps, their effect is not significant.

3. Content Management and Streaming

The main parts of an OTT app are streaming technology and a solid content management system. A good content management system should allow for easy uploading, organizing, and managing of apps.

Moreover, streaming technology is crucial for a seamless viewing experience, which relies on fast internet. However, using advanced streaming technology and content management systems can raise the cost to maintain mobile apps.

4. UI and UX Design

Custom OTT solutions rely heavily on design to attract new customers and keep existing ones satisfied. To create engaging, user-friendly, and eye-catching designs, you should work with a skilled on-demand app development services provider who has a strong background in UI/UX.

However, this may raise costs. Opting for a simple design and less experience can lead to a poor user experience. It’s essential to select a custom design that fits your budget while still delivering a great experience for your users. This approach will save money and ensure user satisfaction.

5. Monetization Strategy

The cost of creating and using a monetization strategy depends on the model you select. This is why it’s important to think through and design your video monetization plan carefully.

It should match your business goals, target audience, and user experience. A good monetization strategy can help you earn money, support your business growth, and offer value to your users.

What Are the Key Features of OTT App Development?

When you create an OTT app for your business, it is vital to decide what features you want in your app. You can also consult with mobile app development experts about the customization of features. We have listed down some of the popular features that will make your app successful.

1. Smart Search and Recommendation

This feature will show users content that matches their interests. This saves time on deciding what to watch. The easier your app is to use, the more likely users will stick around.

Personalized suggestions are key for any successful video streaming app. Therefore, a hybrid app development company can add this feature to suggest prioritizing this in your OTT development.

2. Watchlist

Film lovers understand that watchlists are helpful for managing their movie lists. Adding personal watchlists to your app can motivate users to watch more films. It helps boost their love for movies.

3. Push Notification

Many people want to stay updated on the latest movies and shows. To keep your audience loyal to your app, it’s a good idea to add push notifications. This way, users will be informed whenever new movies or shows are available. They will receive timely alerts about upcoming releases.

4. Offline Mode

Watching movies on a smart TV can feel more immersive, but many people like using mobile apps for their convenience and flexibility. Some well-known streaming app Like Jio Cinema let users download videos to watch anywhere, which adds to their appeal. To attract more users, consider including this feature in your Web series OTT app development.

5. Rating System

When looking for new videos, people usually check reviews and ratings to choose what to watch. To attract movie lovers and reviewers to your cartoons entertainment app, consider making a clear and easy rating system. This can help increase its popularity.

6. Interactive Elements

Some OTT streaming services are trying out new ideas by adding interactive features to their movies and shows. People are showing more interest in interactive content now, and Netflix is also looking to enter the expanding gaming market.

7. Behind the Scenes Content

Movie fans love to learn about how films are made. They enjoy extra content like behind-the-scenes videos or interviews with filmmakers.

This extra material adds value to your streaming service. It can enhance user engagement and improve your app’s reputation.

Tips To Reduce the Cost To Build An OTT Application

There are many additional costs that affect your overall OTT app development cost. This can increase the chances to affect your cost to build an OTT application. So, it is vital to know about the tips and strategies to reduce the cost of building an OTT application. Let’s have a look at them:

1. Outsource OTT App Development

Many businesses choose to outsource to reduce the cost of developing OTT apps. In western countries, the average development cost is between $100 and $120 per hour. In contrast, in eastern countries, it ranges from $15 to $25 per hour. This difference is significant.

2. Build an MVP

An MVP has fewer features and costs less than the full product. You can create an MVP and launch it to the public. This helps you save time and money instead of building the complete app right away. You can use the MVP to attract funding for your trending OTT apps in UAE. After that, you can earn profits and gather feedback to improve the final product.

3. Maintain Simple UI/UX

A way to lower app development costs is to choose simple and stylish designs. A straightforward user interface is crucial for new users because it makes it easier for them to adapt. Many entertainment OTT apps and websites are now using minimalistic designs, which are very affordable to create.

You can Hire full stack app developer to design complicated designs and excessive features that can confuse users and increase project costs unnecessarily.

4. Regular Troubleshooting

The app will need ongoing updates and fixes even after it is launched. Bringing in an expert can be beneficial as they can offer advice on how to lower mobile app development costs during the process. Remember, if you choose to hire an iOS application development services provider from distant locations, you may end up spending a lot more to fix the app later if issues arise.

How To Monetize Your OTT App Development Solution?

There are a lot of ways you can approach monetizing your OTT video streaming app. To help you choose, we’ve outlined the most common monetization strategies for OTT platform development:

1. Subscription Model

Subscription is one of the most popular monetization models for OTT applications. Did you know that the OTT video subscription sales are rising year by year.

It has become the popular choice for delivering video content. The streaming services offer users unlimited access to content libraries in return for monthly payments. For Example: Amazon Prime Video, Netflix etc.

2. Advertising Model

The next popular monetization method is in-app advertisement. Almost every video streaming app like Aha leverages the advertisement model. Unlike video ads, streaming services that use the subscription model rely on ads to boost sales.

Free to use apps tend to favour this type of monetization type. It enables them to increase their audience reach without losing sales. For Example: HULU, HBO Max etc.

3. Transactional Model

The most common model is pay per view. You can also call it a transactional model. In this type of model, users pay a one-fee to access premium content. It can be a single event that you are live streaming or an educational video. It is an online equalizer to rent a movie through cable. For Example, Lionsgate, Amazon Prime etc.

Final Thoughts

Before starting OTT application development, it’s important to plan well. Now that you know the costs involved, you can create a solid strategy to move forward with your app.

The key step is to hire a skilled OTT app development company to turn your idea into reality. You can share your app development needs with them and seek their advice too.

FAQs

1. How Long Does It Take To Build an OTT App?

The estimated time to make an OTT app depends on multiple factors like developer’s location, app complexity and so on. Typically, it can take time between 2-7 months or more.