Given the growing digitalization and robust internet connections all over, the ways people consume music are changing. Online music streaming is gaining a lot of popularity these days. As per a study, the revenue in the music streaming segment is predicted to reach US $23,293 million in 2021. No wonder the likes of music streaming apps such as Spotify and Pandora are undeniable in present times. Have you been planning to start a music streaming business? Well, that’s awesome! In this article, we are going to discuss all about building a music streaming platform of your own and the benefits of it. Keep reading!
How Does Music Streaming Work?
Have you been wondering how audio streaming platform work? Fret not! We are here to explain. Gone are the days when people had to go through the entire list of available songs, prepare a playlist, and then begin listening. Thanks to the convenience offered by a music streaming app, where they can play their favourite songs whenever and wherever they want.
All users need to do is open the music app and play their preferred song. Music streaming platforms allow users to customize their music options. With strong internet connections, people can enjoy their type of music at any moment irrespective of the time and location barrier. Hence, there’s no doubt that it makes sense to invest in the music streaming business. It can help you gain great business attention and earn good profits.
Popular statistics related to music streaming platforms
As per a Statista study, the number of users in the music streaming segment is expected to rise to 913.2 million by 2025. Also, music streaming revenue is projected to show an annual growth rate of 10.8%, resulting in a market value of US $34,198 million by 2025. The figures are just huge and amazing, right? It’s definitely wise to start a music streaming business. So, get rid of all your second thoughts, if any!
Top Music Streaming Apps In The Market
Before building a music platform of your own, it is essential that you dig into some of the leading platforms available in the market. Let us look into some of them one by one.
Spotify is a leading music streaming platform that helps people listen to curated music. They can play millions of songs and podcasts for free. Spotify app users can stream single tracks, albums, and also create customized playlists. Spotify has both free and paid versions. The paid version allows users to enjoy offline and ad-free music.
- YouTube Music
YouTube Music is available to users on a subscription basis. The best part about this music streaming app is that it enables users to search songs with the help of snippets of the song lyrics. It also allows them to switch the audio track to video with just a tap. With YouTube Music, users can explore new releases and watch out for hot trends.
Pandora unlocks access to music and podcasts, both free and on-demand. With a subscription plan, users can stream ad-free music. The ‘For You’ functionality in Pandora allows users to create playlists of new music and podcasts.
Tidal claims to be the first global music streaming service with high fidelity sound and high definition video quality. Users can get access to 80+ million songs. Moreover, Tidal ensures a smooth import of your past playlist. With quick sign up, you get a free trial.
- SoundCloud Go
It is available on different platforms the web, iOS, Android, Sonos, Chromecast, and others. SoundCloud Go allows users to explore some of the buzzed about tracks trending on the SoundCloud community. When users become a Go+ subscribers, they contribute to fan-powered royalties that directly support big independent artists launching their careers on SoundCloud.
- Apple Music
Apple Music is one of the most popular music streaming platforms. Users get access to around 75 million songs. It also enables them to download their favorite tracks and play them offline. With this platform, users can access live videos as well.
Benefits Of Starting A Music Streaming Business Of Your Own
Starting music streaming business of your own can bring a lot of benefits. In this section, we shall discuss some of them one by one.
- Business Flexibility
With a music streaming platform, you can put as much time into the business as you’d like. You can start with something small and manage the different segments of your business on your own. Then, gradually, you can expand your platform.
- Start business from home
The best part about starting a music streaming app is that you do not need to have a physical store or office space. You can launch your business from the comfort of your home.
- Rewarding business
One of the best benefits of starting a music streaming business is that it is rewarding work. You seem to be solving an immediate issue for your audience. It helps you gain popularity.
- Highly scalable
There’s no denying that there will always be new demands for products and services for your business. But don’t worry! Music streaming businesses are really scalable. You can choose from various business models and pricing tiers. This way, you can serve all kinds of customers.
- No overhead expenditures
Starting a music streaming business does not require you to incur overhead expenditures such as storage and packaging costs. It helps you save a lot of time and money.
- Impressive customer retention rates
One of the top benefits of starting a music streaming business is high customer retention. Once a customer invests in your product or service, it is valuable to them. They are likely to come back again and again.
- Quick revenue and results
With the music streaming business, it is possible to get instant results and ROI, unlike other businesses. You just need to keep everything organized and make sure that the platform structure suits the requirements of modern app users.
- Various sources of revenue
In the music streaming business, you can earn revenue in different ways. Some of the best revenue models that you can adopt are TVOD, SVOD, AVOD, and others.
- Strong demand
The love for music is not fading anytime soon. Hence, your music streaming platform is likely to stay in demand. With podcasts becoming so popular these days, your music streaming business will relatively be recession-proof.
Monetization Opportunities From A Music Streaming App
A music streaming business can help you earn revenue from different kinds of sources. Let us take a quick look at some of them one by one.
- Freemium model
The freemium model of a music streaming platform can be said to be the first key step to building relationships with customers. In this, the app users get a particular service free of cost. You can attract a lot of users with your free version and reserve exclusive content with a premium plan.
Ad insertion is also one of the top ways to earn additional revenue for your business. There are two ways of doing this. Either you can play in-content ads or run display ads. In-content ads allow you to add audio ads in between strong streaming. On the other hand, display ads are placed on your home page. Whenever any user engages with the display ad, you get paid.
- Paid subscription
This is one of the most popular mediums to gain audience attention. In this, you can charge your app users some fixed amount to get access to the add-on features available. You can also offer exciting features like shuffle play, unlimited skips, and many more.
How To Create A Music App With The Right Licensing Practices?
If you’re planning to build a music streaming app of your own, licensing would be one of the most important aspects that you need to cover. As a music streaming business owner, you need to make sure that you consider all the laws applicable to offering music to your users. If you don’t follow licensing rules, it can land you in trouble.
Now, there are two types of copyrights associated with a song. The first copyright is related to the sound recording which the record label owns. The second is associated with the composition including the lyrics and melody. One needs to get in touch with the recording labels to acquire a license for the sound recording.
We hope our article helped you comprehend all the important aspects revolving around a music streaming app. So, what are you waiting for? Build your music streaming platform today. There are ample revenue opportunities on freemium and premium models of your business. We wish you in all your future endeavours!