How To Start A Music Streaming Business: A Complete Guide

To enter a competitive business in music streaming app, you should know all the nuances here. 

You can start with a music streaming business, only after examining such fundamentals. 

Well, here we have done it all for you. 

Let’s begin it, together. 

Music Streaming Business Overview: Market Size and Key Statistics

A music streaming service is a type of online streaming media service that primarily focuses on music, and sometimes on different forms of digital audio content including podcasts. 

The business aims to provide users with a platform where they can listen to their favorite music and follow their artists. 

Along with this, music streaming services offer different methods for businesses to make money.

With this platform, users can subscribe to the diversified premium plans that not only provide them a way to follow their favorite artists, but to discover new podcasts, songs, and much more. 

Let’s learn more about the music streaming market statistics, below. 

• The music streaming revenue of the business has surpassed $19 billion annually. This number has increased since the mid-2000s. Between the years 2010 and 2020, the revenue has enhanced by around 34x from $0.4 billion to $13.6 billion.

• This revenue stood at approximately $19.3 billion. Here, 67% of the total music industry revenue comes directly from diversified music streaming platforms. 
• Furthermore, the revenue in the music streaming market worldwide is projected to reach US $35.45 billion in the year 2025. Here, the expected revenue is demonstrated to be 4.90% CAGR, which culminates in a market volume of US $42. 92 billion by the year 2029.

• Apart from this, to sustain a business, users play an important role, right? Well, the penetration rate of the music streaming market is forecasted to reach 1.2 billion users by 2029. 
• Do you know that in the third quarter of the year 2023, 31.7% of the music streaming subscribers were to Spotify?

• Well, This number is continuously increasing. Apart from this, many platforms and apps have led the industry and are contributing to the growth of the platform. 
• Additionally, the global music streaming market size was estimated at USD 46.66 billion in the year 2024 and is expected to grow with a CAGR of 14.9% from the year 2025 to 2030.

Well, after evaluating the statistics, you can proceed with the different types of streaming businesses to carry forward. 

Let’s examine these types below. 

Types of Music Streaming Businesses – Which One is Better For You?

What are the different types of music streaming businesses to consider for developing one?

When you enter any kind of industry, the foremost challenge is to select the type of business you can opt for. Well, you can select one of your kind, only after examining different available types. 

Let’s learn them all, below.

1. Subscription-Based

This is the most common type of music streaming business platform, where the fees are billed at regular intervals such as quarterly, monthly, or annually, depending on different subscription terms.

Here, recurring payments play the most crucial role in generating predictable revenue and enhancing customer retention. 

2. Ad-Based Model

The ad-based model is all about where the users are compensated for the nuisance of ads with free access to the music.

Additionally, here the users are provided an opportunity to upgrade the app to a paying solution along with quality improvements, and the absence of commercial interruptions. 

3. Artistic-Based Model

This type of model works only when the users’ monthly fee is only shared by the artist they listen to. Along with this, the model resembles the pre-streaming principle for revenue sharing.

It is a wonderful model, that is focused on delivering quality to the users directly from the artist. 

4. Pay-Per-Download

The pay-per-download model states opportunities for the users where they can download and keep the songs or whole albums, permanently.

Here the users pay for only a specific service or for the songs of a particular artist or musicians. You can opt for this model, only if you think that the demand for particular albums or songs is more in the market. 

5. Live Streaming Model

There are several apps and platforms in the market that offer live-streaming services. Under this type of model, the users can be able to stream live music by paying a certain amount.

Additionally, with the live streaming model, you can expand your business on various grounds including podcasts. 

These are some of the important types that you cannot ignore when it comes to starting a music streaming business. 

Now, let’s focus on “how to start a music streaming business in the current era?”

The next section describes it all. 

Steps to Start a Music Streaming Business

If you want to begin with “how to develop a music streaming app?”

It’s essential to identify how to initiate with the music streaming business, first. 

Let’s evaluate all the steps below.

Step 1. Idealization and Planning

The foremost step to develop a music streaming business is the idealization and planning of your project.

Here it’s all about evaluating whether your mobile app idea or plan is effective for the business or not. 

Under idealization, you are required you figure out which issue is most important to resolve when it comes to the users, and accordingly, you can frame the idea. 

Along with this, planning is what is to be considered here. You should plan your business, only after evaluating the current market. 

Step 2. Market Analysis and Evaluation

With market research, you can identify the preferences and needs of the users. This stage is all about identifying what’s happening in the present market and then adapting it to address the user’s issue. 

You can identify the gap through market evaluation that can become your ultimate solution or a business idea. 

Additionally, the core purpose of your business too lies under market study. Thus, it’s important to pursue the same. It will assist you to know about the competitors well. 

Step 3. Evaluate User Behavior

Now, it’s time to evaluate the current user behavior as per the market. You should learn about the user’s behavior and then analyze it to fulfill the purpose of your business. 

The user behavior analysis not only helps you to learn more about the users but also regarding fundamental aspects of their experience or app design. 

Here you can know about the users by conducting several testing drivers. This will be an effective pattern to guess their needs and then create a music streaming business, accordingly. 

Step 4. Select the Mode to Enter the Business

After evaluating the market, it’s essential to identify the platform over which you can conduct the complete business. It can be an app or can even be a website. 

Adopting an effective mode to start a music streaming business is important. Whether you go for an app or a site, will decide how you are going to address the project issue. 

A mode will be helpful to give the direction to your business through which you can achieve the purpose. 

Step 5. Plan to Execute the Mode

Whether you decide to start a music streaming business over an app or through a website, you should plan it out. 

Well, going after an app or website includes its own development process, thus, you should plan it all out. 

This will get your music streaming business over a platform that is suitable to reach target users. 

Step 6. Connect With the Developers

Now, it’s time to link with the top developers’ team. Hire mobile app developers, who can convert your dream music streaming business project into a success. 

The developers should be skilled and efficient to build a platform that includes all the essential features and protocols developed to attract potential users. 

It’s significant to connect with the top developers who can address your related concerns and discuss important strategies. 

Step 7. Build and Launch Platform

Under this step, you should create the complete platform whether it’s an app or site with the help of developers. 

You can follow essential steps, including music streaming app design, music streaming app tech stack, etc. 

Now, after completing the steps, you should launch your music streaming platform in the competitive market. 

These were some of the essential steps to consider while initiating a music streaming business. 

Well, steps to build a music streaming business are not sufficient, when it’s an era of AI, AR, and all other technologies. 

Yes, the adoption of these technological trends is important too. 

Let’s get ahead with the latest trends in the music streaming industry in the section below.

Latest Trends in the Music Streaming Industry

The latest trends can help adapt to technological trends. 

Let’s learn all the music streaming app trends related to the industry.

► Personalization

The implementation of personalization assists businesses to know the users most with the help of technologies such as AI in music streaming apps, AR, and other determinants. 

With the help of personalized aspects, it can engage more users and may help them to connect through the music. 

► Web3 and Non-Fungible Tokens (NFTs)

The emergence of the technologies Web3 and Non-fungible Tokens (NFTs) do influence the music streaming landscape. These innovations offer the artist new ways to make money. 

Through using the power of blockchain and non-fungible tokens, streaming services can help you to provide value to both the artists and listeners.

This technology can be useful in addressing your issues of connecting the music streaming platforms with the artists. 

► Implementation of Social Media Integration

The implementation of social media integration is essential for assisting users with diversified platforms through which they can share music. 

This technology or feature is useful to promote your business too. Additionally, it will help you in connecting a large base of users. 

► High-Fidelity Audio

Through the adoption of high-fidelity audio, your music streaming business can grow wide.

Well, if you provide users with high-quality audio in the music streaming industry, the chances of attracting and engaging them increase. 

The technology implementation is what you seek through the same. This technology will enhance the overall experience of the users. 

► Smart Device Integration

Is your music streaming business platform capable of addressing the users’ issues of compatibility over cross-platforms?

Well, the adoption of smart technologies within your platform can be effective in connecting your business with multiple platforms whether it’s a smartwatch, tablet, or mobile phone. 

These were some of the important technologies that needed to be implemented to lead the industry. 

Now, as we proceed further, you should learn about the mistakes that might happen when you start a music streaming business.

Let’s switch to the next section. 

Common Mistakes and Solutions in Starting a Music Streaming Business

What are the obstacles to begin a music streaming business?

Learning about the challenges can even help you to reduce the overall music streaming app development cost or business costs. 

Here is a list of common mistakes to avoid while creating a music streaming app.

♦ Lack of Market Analysis

If your market analysis is not apt or proper, there is a vast possibility of failure. Avoiding market research will too lead to the wastage of resources. 

♦ Selection of Inappropriate Developers’ Team

If you select the wrong developers’ team, this will impact the whole business model along with your project’s aim. 

♦ Scope Creep

The unclear scope of your project will end you nowhere. This can even make your music streaming business goal difficult to achieve. 

♦ Avoiding Money-Making Models

One of the purposes of your music streaming business is to make money, isn’t it? Well, thus, avoiding the money-making models can be an issue here. 

♦ Compatibility issues

If your app or site is not compatible with different devices or any of the smart devices, then it might create a challenge for your business. 

These were some of the challenges that you cannot ignore, here. Now, let’s focus on some of the money-making models for your business. 

Let’s consider the given section. 

Revenue Model: How a Music Streaming Business Makes Money

What’s the revenue model to adopt here for your dream music streaming business?

Music streaming app monetization strategies not only help enhance your business but also let you earn a handsome amount of money. 

Here’s the list of different revenue models that you should go for.

• Advertisement

Whether it’s a website or an app, you can include multiple ads within the platform. Here connecting with the top third-party companies can help you to earn a great and regular amount of money. 

• Subscription Plans

Subscription plans are among the most important money-making strategies, that you shouldn’t avoid.

This strategy is useful for the users to help them with getting their preferred plans as per the current and competitive prices. For you, it’s a regular money-making source. 

• Artists Fees

When you start a music streaming business, you begin with a platform to connect the artists and the listeners.

Thus, with such a platform, you can charge a fee from the artists who upload their albums or songs, here. 

• Freemium Model

Under this model, you can provide certain features for free and others for a certain amount. Well, through the freemium model, you can attract and engage the users well.

This can be an additional source of income for your business. 

Till now, we have discussed different concepts, stats, processes to start a music streaming business, challenges, and money-making strategies. 

Now, let’s proceed with some of the examples in the music streaming industry who are pioneers here. 

Successful Music Streaming Businesses and Their Growth Stories

When you proceed to start a music streaming business, it’s significant to follow and adopt growth stories. 

This sets and acts as an example for you to enter the industry. Let’s study them all here.

➤ Spotify

You must be aware of Spotify and how important the platform is for many of the listeners out there. This platform has developed a unique fan base and is leading among the best music streaming apps. 

You can develop an app like Spotify, through identifying and implementing the top features within your app. 

➤ Tidal

To create an app like Tidal, you should evaluate its core audience. The Tidal app provides an artist-first and fan-centered music streaming platform.

This is what makes it unique from its competitors. 

The platform makes use of FLAC to deliver more than 110 million lossless tracks. This even helps the users to connect and reach their favorite artists, easily. 

➤ Apple Music

Apple Music is a top audio and video streaming music platform. Here the users can select the music according to their preferences.

They can even make their own playlists and can proceed with the ad-free music. 

You can develop an app like Apple Music, by watching out the preferences of different iPhone users. 

➤ Amazon Music

Similarly to Amazon Music, you can include songs & podcasts in the app. It is one of the top apps that offers access to millions of songs and podcasts.

Additionally, it helps the users to go online too.

To develop an app like Amazon Music, you can proceed with different types of features that it includes for providing a diversified experience to the users. 

These are some of the examples that you can add and go through when it comes to initiating a music streaming business. 

Confused about how to proceed, well connect with an experienced list of developers. 

How Nimble AppGenie Can Help You Launch a Music Streaming Business

Are you Searching for an expert to develop your dream music streaming business?

Partner with Nimble AppGenie, and create an app that will comply with the market guidelines, and have the ability to succeed. 

We are the leading Music Streaming App development Services, focused on delivering quality by discussing your features, and project objectives. 

Our team is ready to help you at every prospect of the process and will ensure to deliver the project as per your dream.

Conclusion

Creating a music streaming business isn’t rocket science but only if you know the effective steps. Here the steps will start with market analysis and end on connecting with an expert team. 

There can be a certain series of challenges that you must ignore including poor market analysis, Selecting an inappropriate team of developers, scope creep, and compatibility challenges. 

Additionally, you should different revenue modes here such as advertisements, subscription plans, artist fees, and the freemium model. Connecting with the top experts can be helpful here.

FAQs

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.