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Tim Cook had already warned us. "The future of TV is apps." These were his wise words about five years ago. A statement that we, as app developers, naturally love to hear, but one to which we'd like to add some nuance. We believe that the future of TV doesn't just consist of apps, but of streaming apps, to be precise.
Popularity of Streaming Apps Rises
Over the past year, we've seen a growing interest in streaming apps. The path to success is also clearly evident among our clients. Even before the Covid-19 crisis, the streaming apps we developed for DutchChannels had tens of thousands of active users. In response, DutchChannel asked us to expand their streaming services with TV apps for platforms like Android TV, tvOS, WebOS, and TizenOS.
From our home base, we are currently working hard on the TV streaming applications.
What explains this rising demand for streaming apps? Why are streaming apps the trend for 2020? And why is it particularly smart to capitalize on this now? In this article, you'll read all about the streaming app trend.
First, a brief intro to streaming apps
The days of having to keep track of when a show or movie would air on television are long behind us. Because we can watch programs via the internet, we can view content whenever we want. Whether you want to watch a movie, series, show, or photo library; almost everything can now be viewed online and streamed to your TV or another internet-connected device.
Streaming from Internet to TV
The term 'streaming' is used when certain files (often in the form of videos and/or audio) are transmitted in phases over a network. Instead of first downloading the entire file, the server can start playing at any time. As a result, the file does not need to be downloaded and stored by the user. The term streaming is primarily used in webcasting and is a distribution method for viewing videos and video on demand (literally; video upon request). When a user streams, a portion of the data is continuously placed in a buffer, allowing a video to be played without the entire video being downloaded. A streaming app makes this possible. With a streaming app, users can view any form of content online and stream it from a smartphone or tablet to a TV or other smart device. Regular television is also streamed via the internet nowadays. In this way, digital television is essentially already streaming.
This includes:
Livestreaming
Think of it as streaming 2.0. Everything you see (image and sound) happens live. This is often used for festivals, performances, or important (press) conferences. Livestreaming allows those who are not present to still follow an event. For this, you need: someone filming on location, an encoder to convert these images into a digital format, a server to send them to, and a streaming service. Et voilà: you have a digital live event.
Video on demand
Video on demand, also known as video by request, is a network service that allows a user to watch a video at any time. A VOD system is often part of interactive television. Traditional video instruments like a Blu-ray player or a VCR (who still remembers those?) are thus rendered obsolete. Users often need a set-top box and a subscription to a specific service.
Who are the biggest providers of streaming services?
While a few years ago we only had Netflix to watch movies and series, we now have a wide range of choices. Netflix is one of the original American streaming services. They started in 1997 as a mail-order video rental service. They are now the market leader for on-demand movies and series, with approximately 148 million subscribers worldwide. Besides Netflix, you can consider Ziggo Movies & series, Amazon Prime, NPO Start plus, Videoland, Disney+, Apple TV+, and of course, DutchChannels.
Why are streaming apps the trend of 2020?
Streaming. You really couldn't avoid it in recent days: European networks are overloaded. Chances are you watched a video on Netflix and were surprised by the poor quality. Or perhaps you read on NU.nl or Tweakers that both Facebook, YouTube, and Netflix are reducing the quality of video streams for 30 days across Europe.
Whether you're the CEO of a large corporation, a student looking for something to do to combat boredom, or a marketer at an app developer temporarily writing blogs from your home office HQ. We all have one thing in common: we're at home. Unfortunately, it's expected that we'll be staying home for a while longer if we want to make the Netherlands COVID-free. This means that the pressure on European networks has increased because more people are working from home and have to stay indoors.
The major streaming service providers have therefore announced that they will temporarily reduce the bitrate and switch videos to SD (standard definition) instead of HD (high definition) quality. This is an attempt to relieve the strain on the networks. However, even before the current coronavirus pandemic, streaming was already a hot topic. Looking at recent years, we've seen a significant increase in the number of streaming apps, according to research by Statista.
The Streaming Service Revolution
Streaming services have brought about a revolution when it comes to 'traditional' television. Not only do streaming services like Netflix or Hulu have a huge impact on 'where' and 'why' people watch TV, but they also influence the content being offered.
Streaming apps are the future. Whether you offer movies, shows, concerts, or live games. Streaming solutions fit the current media landscape and user preferences. People want to enjoy content at their own convenience. On the train, in the background while cooking, or during a weekend binge-watching session. The 1-minute video below provides a good overview of the possibilities of apps for
What about streaming apps for smaller players?
The number of streaming services has risen sharply in recent years. This isn't just true for the big players. In fact, small players entering this relatively new field are experiencing enormous growth in active users and subscribers. A good example of this is DutchChannels, a video-on-demand provider focused on niche platforms. For DutchChannels, we have developed two whitelabel streaming apps developed for niche target groups. The first is the 'WithLove' app: an on-demand channel that is a romantic streaming service full of rom-coms, dramas, and the best comedies. Additionally, we developed the 'New Faith Network' streaming app: the largest Dutch on-demand platform for Christian films and videos. Both apps were already 'trending' in the stores in their release week.
We are currently developing multiple TV streaming apps for: Android TV, tvOS, WebOS, and TizenOS.
What explains the rising demand for streaming apps?
To explain the trend towards streaming and video-on-demand apps, we need to look at the perspectives of both the consumer and the streaming content provider. Streaming apps are beneficial for both parties.
The benefits of streaming apps for the consumer
Consumers have control over what they watch and when they watch it. Whereas families used to gather around the television and thus had shared control over what was watched, that is now a completely different situation. Everyone can individually watch what they are interested in. The number of devices users can stream with, such as tablets and smartphones, is increasing. Furthermore, a subscription model is user-friendly. Users pay a relatively low fee for a membership, after which they gain immediate access to a large assortment. Additionally, they can cancel the subscription at any time.
The benefits of streaming apps for app owners
For entrepreneurs and app owners, streaming apps are a lucrative venture. They allow niche services to enter the market and compete with larger players. Furthermore, streaming apps are often accompanied by subscription models as a revenue stream. Increasingly, the revenue model for apps is shifting towards subscriptions. This is because it provides a continuous stream of income and allows you to easily tailor content and revenue to recurring users. Well-known examples of major players who have been using in-app subscription models for years include Spotify, Netflix, Tinder, and Apple Arcade.
What technologies should you know about streaming apps?
If you want to develop a streaming app, there are a few things you need to know. These include proper image quality, DRM (digital rights management), personalized content, and adaptive streaming. We'll explain them:
Streaming trend #1: viewing experience (user experience)
The success of any app you have developed hinges on its user-friendliness. For video, this might be even more crucial. Algorithms are increasingly being developed to offer personalized content to users through machine learning. Additionally, we use adaptive streaming when developing our streaming apps.
Adaptive streaming? Adaptive streaming (also known as adaptive bitrate streaming) is a technology designed to provide users with the highest possible quality in the most efficient way at any given moment. Instead of showing all users the same video (progressive streaming), adaptive streaming optimizes based on the device being used. This ensures that videos are optimized for the user, thereby combating pixelation and buffering, two major sources of user frustration.
Streaming trend #2: DRM (digital rights management)
To protect content from unauthorized use, it is advisable to implement DRM technology. DRM ensures that video content is stored and transmitted in an encrypted form. This means only authorized users and devices can play the video. Before streaming, the content must be encoded and packaged using so-called DRM schemes for better device compatibility. For example, if a user wants to play a video, the server determines if the user and device are authorized, upon which a license key is issued.
Interested in developing your own streaming app or learning more?
Do you have a concept for a streaming app and are you curious about the cost of developing a streaming app or what the development process looks like? Then feel free to contact us, we'd be happy to help you.
