How Much Does It Cost To Build a Streaming Service (in 2025)

How much does it cost to build a streaming service is a common question for future founders considering different startup ideas. 

With platforms like Netflix, Prime Video, and Disney+ growing to millions of users, it’s easy to see why this market seems appealing. 

In this guide, we will break down real development costs, key features, hidden expenses, and how investors evaluate streaming startups. 

By the end, you’ll understand the live streaming platform investment. 

Why Build a Streaming Service?

Streaming is the new reality. 

Platforms like Netflix have over 300 million subscribers. 

Short videos, especially on TikTok, are very popular.

We are also seeing new content that combines gaming, artificial intelligence, and entertainment.

So, building a streaming service could be a good idea. 

However, before deciding to create one, founders seeking investment from Konvoy and other venture capital firms need to be sure about how much the live streaming platform investment is. 

Breaking Down How Much Does It Cost To Build a Streaming Service

If you want to build a streaming app, costs can vary widely. 

Still, according to the development documentation and industry benchmarks, we can have an idea: 

• For a Basic MVP, plan to invest about $40,000 to $70,000. 

• If you want it on Web, iOS, and Android, you’ll need to invest more, around $70,000 to $200,000.

• For a polished product with lots of features, budget between $100,000 and $300,000 or more.

• If you want advanced options like live streaming, AI recommendations, detailed analytics, and top security, the investment increases. Between $200,000 and $500,000 or even more. 

However, there are several factors that influence the cost directly. Let’s explore them.

1. Development team cost

The final price of your app mostly depends on who builds it, which is your team structure.

Rates can vary based on your choice:

• If you hire individual freelancers, you pay an hourly rate. This rate can be between $25 and $150 per hour.

• If you choose a development agency, the cost changes. A full-time engineer from an outsourced team costs about $80,000 to $200,000 a year.

• You can also build an in-house team, but this option is usually the most expensive. Besides salaries, you also have costs for equipment, hiring, employee benefits, and office space.

Many gaming startups backed by Konvoy face the choice of starting on their own or developing an MVP, even when it is an indie or an AAA product. 

Once established, they often hire a team to grow.

2. Platforms 

Every platform you choose adds to the development work and expense. 

Typically, you start with a Web app, iOS (iPhone/iPad), and Android. 

If you want to include Smart TVs (like Samsung, LG, Roku, Apple TV, Fire TV), that costs more and is often done later. 

3. UI/UX design

Design affects costs based on how simple or complex you want it:

• Basic design: A simple, clean look may only cost $2,000 to $3,000.

• Custom & interactive: Unique designs with animations and interactive features can cost $3,000 to $5,000.

• Responsive design: Making sure it looks good on phones, tablets, and web browsers adds about $2,500 to $4,000.

4. Core features

This is the app's main functionality. 

Must-have features include user accounts, subscriptions/billing, push notifications, and a custom admin panel.

You can also get smart features and AI recommendations and watch history.

Typical feature costs include:

• Basic: Around $5,000 to $7,000.
• Subscriptions: $3,000-$5,000.
• Extra features: $2,000 to $4,000.

5. Backend infrastructure

Since you’re dealing with large video files, backend costs are significant. 

This includes video storage, encoding, and using a CDN (like Cloudflare) for quick delivery. 

You also need servers (AWS, Google Cloud, etc.) and security features like DRM. 

The initial backend setup generally costs between $15,000 and $30,000, with an additional $10,000 to $25,000 for cloud infrastructure.

6. QA Testing

You must prioritize testing, especially for streaming apps.

• Basic QA: Costs $3,000 to $7,000.

• Advanced QA: Costs $8,000 to $10,000.

7. Ongoing Maintenance

Once your app is live, you need a maintenance budget. Plan to spend about 15-20% of the total development cost each year for:

• Fixing bugs.
• Scaling your servers as your app grows.
• Adding small features and security updates.

Monetization Models 

Here are some common ways to gain return of investment and earnings with a streaming service:

• Subscription Video on Demand: Users pay a fixed monthly fee, like on Netflix.

• Transactional Video on Demand: Users pay for each view, like buying a movie on Apple TV.

• Advertising Video on Demand: Users watch ads for free, like on YouTube or Pluto TV.

• Hybrid models: Many platforms combine methods, such as SVOD plus AVOD (like Disney+ or Hulu), or they offer premium options (like 4K resolution or extra screens) for a higher price.

What VCs Look For in a Streaming Startup

When pitching to a Venture Capital firms (like Konvoy, which focuses on interactive entertainment, deep tech, consumer apps, enterprise, and more), they follow a checklist:

1. Market size

VCs want to know whether your target audience and potential revenue can deliver strong returns. 

2. Competitive advantage

What prevents competitors from copying you? Do you own your shows or movies? 

Do subscribers have a good reason to choose your platform beyond just price?

3. Technology advantages

What technology do you use? VCs and angel investors want to see tech that gives you an edge:

4. Financial and operational efficiency

How many subscribers leave? 

What does it cost to get a customer compared to how much they will spend with you over time? 

5. Growth stages & funding rounds

VCs need to know you have a clear plan for the future. 

They will check that your current asks and growth trajectory align with the standard funding progression (Seed, Series A, B, etc.).

In Summary

So, how much does it cost to build a streaming service? It costs between $40,000 and $300,000 or more. 

The price depends on how complex the platform is, the design of the user interface, the backend setup, and the cost of licensing content.

If you're looking to build or grow a streaming service and want to learn more about live streaming platform investment, consider subscribing to Konvoy’s weekly insights.