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How to set up a subscription video service like Goalhanger: hosting, DRM and downloadable perks

ddownloadvideo

2026-02-04

11 min read

A practical 2026 playbook to launch a subscription video service with secure downloads, DRM options and revenue projections for creators and small studios.

Launch a subscription video service like Goalhanger: hosting, DRM and downloadable perks — a technical & business playbook for creators (2026)

Hook: You want consistent recurring revenue, loyal fans and a clean workflow to let subscribers download episodes for offline viewing — but you’re blocked by confusing DRM options, hosting costs and paywall design. This guide gives a pragmatic, production-tested blueprint to launch a subscription video service with member downloads, secure playback and realistic revenue projections in 2026.

Why this matters now (2026 context)

Subscription-first studios are scaling. In early 2026 Press Gazette reported Goalhanger exceeded 250,000 paying subscribers, roughly £60 per year average — translating to ~£15m revenue annually for their podcast/video network. That model proves creators can turn premium content into a business if they get the technical plumbing right: hosting, DRM, paywall, downloadable perks and lifecycle economics.

"Goalhanger's mix of ad-free access, early releases and member perks shows how product + community + tech scale revenue quickly." — Press Gazette (Jan 2026)

What you'll learn

Concrete infrastructure choices for hosting, encoding, DRM and CDN
How to offer secure member downloads (web + native apps)
Paywall integration, authentication, and billing considerations
Revenue modelling and a sample financial projection
Operational checklist and launch timeline

Overview: product and technical architecture

At a high level, a subscription video service needs:

Ingest & Storage: Uploads, raw storage and catalog metadata
Encoding & Packaging: Transcode to ABR sets (HLS/DASH/CMAF), subtitles, thumbnails
DRM & License: Protect streams and downloads with Widevine / PlayReady / FairPlay
Delivery: CDN with origin, cache strategy and regional PoPs
Player & App: Web player + native iOS/Android apps with offline support
Paywall & Auth: Billing, paywall flow, identity (JWT), entitlement checks
Analytics & Ops: Playback metrics, error reporting, AB tests

Step 1 — Choose hosting & encoding (practical options)

Pick a host that fits scale and team skills. For small studios (first 1k–50k subs) start with managed platforms; for 50k+ consider hybrid cloud to control costs.

Managed options (fastest to market)

Mux — API-first encoding, playback analytics and hosted player; integrates with major CDNs and DRM providers.
Brightcove — Enterprise features and built-in DRM; good for live + VOD combos.
Vimeo OTT / Uscreen-style suppliers — All-in-one, but watch fees and customizability.

Self-managed (flexible, cost-optimised)

AWS stack: S3 (origin), MediaConvert (transcode), Elemental MediaPackage (CMAF/HLS/DASH & DRM), CloudFront CDN.
Google Cloud: Cloud Storage, Transcoder API, CDN + IAP for auth tie-ins.
Azure: Blob Storage + Media Services + CDN.

2026 trend: CMAF + AV1 adoption — CMAF unifies HLS/DASH packaging and AV1 is now practical for large catalogs where encoding costs are justified. Support AV1 outputs for 4K and high-motion sports footage to cut bandwidth in half on modern devices.

Step 2 — Packaging, ABR ladders and quality settings

Prepare an ABR ladder tuned for platform and audience. Example ladder for typical episodic content:

1080p (5.5–8 Mbps, HEVC or AV1)
720p (2.5–4 Mbps)
480p (1–1.5 Mbps)
360p (600–800 kbps)
Audio: 128–256 kbps AAC/Opus

Offer a high-bitrate downloadable file for enthusiasts (e.g., 10–20 Mbps 1080p or 4–8 Mbps 720p) and a smaller offline copy for mobile (1–3 Mbps). Transcode once, package into CMAF for HLS/DASH and produce a separate, downloadable MP4/HEVC file for users who want an offline copy without streaming.

Step 3 — DRM: options and tactics for member downloads

DRM is the trickiest technical and UX trade-off. You must protect premium content while preserving a smooth offline experience.

DRM systems (what to choose)

Widevine — Android and Chrome ecosystem
FairPlay — Required for iOS Safari and native iOS apps
PlayReady — Windows and some smart TVs

For cross-platform protection, implement a multi-DRM solution via a provider (EZDRM, BuyDRM, Verimatrix). Many packagers (MediaPackage, Wowza, Shaka Packager) support multi-DRM output.

Offline downloads with DRM — common approaches

Platform-native offline licenses: Native apps obtain an offline license token bound to device/OS. The license time-limited or renewable. Best UX on iOS/Android.
Encrypted MP4 with timed license: Deliver an encrypted MP4 container and require the app to fetch a time-limited license to decrypt when playing offline.
Secure container (DRM SDK): Use a vendor SDK that manages secure sandbox storage and keyed decryption (recommended for high-value content).

Key policy choices:

Time-limited downloads (e.g., 30 days) — balances user convenience with piracy risk.
Device-only play — binds license to a device ID to prevent file-sharing.
Offline renewals — allow grace periods and renewal when the device is online.

2026 tip: users expect smooth offline behavior. Invest in SDKs for automated license renewal and clear UI that shows expiration and renewal steps.

Step 4 — Paywall, billing & authentication

Member management is as important as DRM. Choose billing and auth that support trials, coupon codes, multi-tier plans and international pricing.

Billing providers

Stripe — flexible subscriptions, webhooks, and strong global support
Chargebee / Recurly / Paddle — add advanced dunning, revenue recognition and VAT handling
App store purchases — must follow Apple/Google rules for in-app purchases; many creators use web subscription funnels to avoid store fees for non-app content

Auth & entitlement flow (recommended)

User subscribes via billing provider (Stripe/Paddle/etc.).
Billing provider notifies your backend via webhook.
Your backend creates/upserts a user record and issues a signed JWT with entitlement claims (plan, expiry).
Player/app uses JWT against an entitlement endpoint before playback or download.
DRM license server validates entitlement before issuing a license key.

Security tips: short-lived JWTs for playback; refresh tokens for long sessions; rate-limit license requests and log suspicious activity.

Step 5 — Player, apps and offline UX

Player choice matters for DRM and offline features.

Web: HLS.js + Shaka Player for EME/DRM support; use Service Workers and PWA patterns to cache UX, but note browsers limit offline video storage and DRM offline support is limited.
iOS native: Use AVFoundation + FairPlay streaming and FairPlay offline SDKs for downloads.
Android native: ExoPlayer + Widevine modular DRM for downloads and offline playback.

UX patterns for downloads:

Clear download buttons with size/quality toggles
Download manager with progress, remaining quota and expiry dates
Automatic cleanup rules (e.g., remove after 30 days or on device low storage)

Step 6 — CDN, caching and cost optimisation

Bandwidth is the largest ongoing cost. Use a CDN and optimize cache hits.

Use an origin shield to reduce origin load.
Cache long-lived assets (thumbnails, MP4 downloads) and use short TTL for manifests if you need fast invalidation.
Implement regional POPs; for live events choose a CDN with edge compute for ad insertions.

Estimated costs (ballpark as of 2026):

Storage: £0.01–£0.03 / GB-month
CDN delivery: £0.015–£0.08 / GB (vary by region and volume)
Transcoding: £0.02–£0.10 / minute per profile (one-off per encode)
DRM licensing: £0.10–£5 / 1k license requests depending on vendor and SLA

Revenue modelling: simple projections and unit economics

Use a few scenarios to forecast growth. Below are example formulas and a sample projection you can adapt.

Key inputs

Monthly subscribers (S)
Average Revenue Per User (ARPU) monthly or annual
Churn rate monthly (C)
COGS = hosting + CDN + DRM + payments
Acquisition Cost per Subscriber (CAC)

Sample projection (rounded)

Assume:

S = 10,000 paid subscribers
ARPU = £60 / year = £5 / month
Monthly revenue = 10,000 * £5 = £50,000
COGS estimate = 25% of revenue (CDN, encoding, DRM, payments)
Gross margin = 75% = £37,500 / month

Annualised: £600,000 revenue, ~£450,000 gross margin. Scale to Goalhanger: 250k subs * £5 = £1.25m / month (~£15m / year).

Key levers to improve margin:

Lower CDN costs with committed volumes / multi-CDN routing
Limit high-bitrate downloads to premium tiers
Optimize transcodes (use AV1 for high-value titles)
Improve retention (reduce churn by member perks and early access)

Monetisation & subscriber perks (beyond downloads)

Perks drive retention and justify higher ARPU. Goalhanger succeeded by combining perks: ad-free content, early access, bonus episodes, newsletters, live ticket presales and Discord communities. For video-first services, consider:

Downloadable director's cuts / high-bitrate files
Exclusive behind-the-scenes video, raw assets or multitrack audio stems
Early access + members-only live Q&As (low-latency live streaming)
Transcripts, searchable clips and repurpose-ready assets
Community channels (Discord/Slack) and ticket presales

Legal, copyright and UK compliance

Creators must be deliberate about rights and licensing:

Ensure you own or have licenses for all assets (music, clips, images)
Document distribution rights for downloads and international territories
Comply with UK consumer law on subscription cancellations and refunds
Implement age gating and content ratings if necessary

2026 update: regulators have tightened transparency rules for subscription services. Show clear trial terms and renewal prices at sign-up. For in-app purchases, follow Apple and Google guidelines — many studios use web sign-ups to keep more revenue but must still respect app platform policies for native-app content.

Operational checklist: from pilot to scale

Prototype: Publish 10–20 episodes, enable web paywall + Stripe checkout.
Integrate player & DRM SDKs for iOS/Android. Start with streaming-only DRM before enabling downloads.
Implement entitlement API and short-lived JWTs for playback.
Run a closed beta with 500 users; test downloads and license renewals on device fleet.
Measure: playback failures, license errors, download success rate, churn. Pair analytics with instrumentation playbooks like the one that reduced query spend in production.
Iterate: fix SDK edge-cases, improve UX for license expiry and offline renewals.
Scale: add CDN POps, commit to bandwidth discounts, and enable multi-DRM for wider device support.

Troubleshooting common problems

1. Downloads fail on some Android devices

Check Widevine device support and ExoPlayer integration. Fall back to non-DRM encrypted MP4 for unsupported older devices or offer streaming-only for that cohort.

2. License renewal fails when offline

Implement a grace period and cache entitlement checks locally. Prompt users with clear messaging and one-click reconnect actions.

3. Unexpectedly high CDN bills

Audit ABR ladder — large default bitrates inflate costs. Enable bitrate caps for mobile tiers and add caching rules for static assets. Bandwidth and hosting fees are often the biggest unexpected line items; see host-cost rundowns for planning.

Advanced strategies and 2026 trends to watch

Edge computing for personalization: run personalization and server-side ad insertion at edge nodes to keep latency low for live events.
AI-assisted workflows: auto-chapters, highlights and clips for social repurposing — reduces editing cost and increases user acquisition via short clips.
AV1 & VVC: use AV1 for high-value catalog and VVC as hardware support grows across smart TVs in 2026.
Privacy-first analytics: adopt first-party analytics and cookieless measurement to future-proof acquisition tracking.

Case study: what Goalhanger teaches creators

Goalhanger scaled to 250k+ paying subscribers by packaging strong editorial IP with member benefits and consistent release cadence. Their mix — ad-free content, early access and community perks — increased ARPU and reduced churn. Technical takeaways:

Invest in smooth subscriber onboarding and clear paywall value propositions
Offer differentiated downloadable files for premium tiers
Use community features (Discord, newsletters) to extend retention beyond video consumption

Launch timeline: 12-week sprint to MVP

Weeks 1–2: Product spec, rights audit, choose vendors
Weeks 3–4: Implement ingestion, encoding and CDN, integrate Stripe
Weeks 5–8: Build web player with DRM streaming, implement entitlement API
Weeks 9–10: Develop iOS/Android download flow and offline license handling
Weeks 11–12: Beta test, fix issues, prepare marketing launch

Actionable checklist (copy & paste)

Decide hosting model: managed (Mux/Brightcove) or cloud-native (AWS/GCP/Azure)
Define ABR ladder and download variants (mobile vs high-bitrate)
Select multi-DRM provider and configure license policies
Set up billing (Stripe/Chargebee/Paddle) and webhook-driven entitlement
Implement player + SDKs; test on representative devices
Create analytics and alerting for license/stream errors
Prepare legal: rights clearance, terms, and data handling policy

Final thoughts

Building a subscription video service in 2026 is technically accessible for creators and small studios — but success hinges on product design that balances security, UX and economics. Offer useful downloadable perks, instrument retention metrics and choose a DRM/paywall architecture that scales with your audience. The Goalhanger example shows scale is possible when editorial product, community and tech are aligned.

Next step — get the launch checklist and cost model

If you want a ready-to-use spreadsheet with cost assumptions (storage, CDN, DRM, churn scenarios) and a launch checklist tailored to podcasts-turned-video or sports content, download our free 12-week playbook. Implement the items above and you’ll be well-placed to build a sustainable subscription business with secure member downloads.

Call to action: Download the free playbook, or contact us for a 30-minute technical review of your architecture and a customised revenue forecast.

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