In this digital age, music streaming app like Spotify have become the mainstay of entertainment, with Spotify dominating the scene as one of the most loved platforms in the world. However, underneath its sleek interface and vast library of songs lies a complex structure that’s worth exploring.

For budding entrepreneurs and companies, learning about the costs of developing apps like Spotify can be a fascinating experience. It’s not only about preserving a song library, but also about integrating advanced features, providing an enjoyable user experience, and maintaining the app’s quality in the face of growing competition.

This thorough guide is designed to uncover the complexities behind building an effective music streaming app like Spotify. We’ll delve into the core Spotify features and cost that give it a competitive edge in the market, and provide an estimate of potential costs.

So, if you’re thinking about entering the world of streaming music apps or just curious about the process that goes into creating an incredible piece of work, you’re in for a delight!

What is the Spotify App?

The Spotify app is one of the most popular music streaming apps, providing mobile users with access to a vast library of podcasts and songs from a diverse range of artists worldwide. It offers premium and free subscriptions to let users enjoy their favourite music and discover new music.

It’s based on personalized suggestions. It is user-friendly and accessible on a variety of devices. This has also changed how we experience music.

Spotify is a robust and feature-rich mobile app. If you’re looking to build a music app like Spotify, you must understand the fundamentals and complexities of developing a successful music streaming app.

Understanding the Spotify Model

Its share of the Spotify market amounts to 31% and has become one of the top-renowned streaming services on the Internet worldwide. The Spotify application operates using a freemium model, offering subscription and free plans. Users can utilize the platform and enjoy a wide selection of songs. The premium version of Spotify offers ad-free service. Additionally, you can opt for an offline listing. If you opt for the premium package, you can also improve the quality of your audio.

The Spotify business model has gained attention from a broad audience. Additionally, it helps convert multiple users into paying subscribers. The app Spotify earns money through partnerships and branded playlists, and offers data-driven advertising solutions for various businesses. Spotify utilizes data to deliver targeted advertising. With its revenue-generating model, Spotify can maintain its position as a market leader. This business strategy has helped them expand their services globally.

Music Streaming Market Stats

Apps for streaming music are a type of online-on-demand application that permits users to stream, explore, and save music from various genres, artists, and styles.

This app requires no introduction, as we’ve all used music streaming applications for a long time. Spotify, Shazam, and Pandora are just a few of the top music streaming applications. After getting that already out of the way, we can dive into the market through data:

  • The audio streaming app US market is estimated to be $34.53 billion by 2022. The market is expected to reach $103.07 billion by 2030, representing an estimated CAGR of 14.4% from 2023 to 2030.
  • The growing use of smartphones, the increase in internet access, and an increasing demand from consumers for streaming content drive market growth.
  • Music streaming now accounts for 84% of the industry’s revenue.
  • Nearly half of the revenue from music streaming apps comes from the US.
  • More than 600 million users worldwide subscribe to music streaming services.
  • 78% of the population listens to music using streaming services, with YouTube being the most popular platform (2.5 billion), followed by Tencent platforms (over 800 million) and Spotify (381 million).
  • Music streaming apps generated $43.3 billion in revenue in 2022, representing a 15% increase from the previous year.

This is precisely why on-demand app development is so popular with both businesses and investors.

music streming app development

Key Features to Include in a Music Streaming App Like Spotify

Music streaming apps are loaded with distinctive features, making them extremely complicated services. When designing an app for streaming music, it is crucial to consider several key aspects. To simplify things, we’ve listed the most essential functions you’ll need to include in your app.

This list doesn’t include typical functions such as authorization, social network integration, push notification, or music sharing, because these functions are available in nearly all mobile apps.

Subscription

To improve the user experience, you must allow users to sign up without cost. They can log in to your music service applications by connecting them to an existing social media account.

AI Recommendations

Artificial intelligence is a crucial component in developing an application that streams audio. Because many people love discovering new music, they are more open to suggestions tailored to their tastes and listening habits. You can request to mark the songs they genuinely like or dislike to help the AI monitor their preferences.

Searching for Music

Your customers can search for every song or podcast using the search feature. The tags should be able to identify artists, albums, songs, as well as labels and genres.

Music Player

The user interface of a music player is generally simple to use. In addition to the track’s audio, the player features a volume control and buttons to play, pause, or switch between music. In addition to the album design, its interface also displays details concerning the album. An image of the track will replace the cover art of specific streaming audio applications. To increase the user’s interest, it is essential to ensure that the data is not used entirely beforehand.

Audio Streaming

Streaming allows you to stream video or audio rapidly and continuously on the Internet. This means that users can listen to music that was previously purchased through the service, rather than having to buy it separately.

Podcast and Radio

Alongside streaming music, a majority of apps offer their radio stations, podcasts, or even audiobooks.

Lyrics Display

Numerous streaming music apps provide lyrics for songs, but some also link the lyrics to the music playing. Apple Music, for instance, is one of them. You can quickly find and listen to specific lines of a song using it.

Playlist

This feature allows users to save their favorite songs using a music streaming application and then create playlists based on the songs they like.

Offline Mode

It’s extremely beneficial to listen to your favourite tracks while running through a forest on an unstable internet connection, and then downloading the tracks to a streaming music application. Many features can cause problems and confusion in your mind. You can avoid this by beginning with preliminary development of the app.

Licensing & Legal Considerations

Making use of legal knowledge when creating the music streaming app can protect you from lawsuits. They can assist you in navigating the maze of rights management and ensure that artists are paid properly. Here are the most US-specific laws to be aware of when it comes to providing legal compliance for your music streaming app.

RIAA/ASCAP/BMI Licensing Costs

When you develop an application for music streaming in the USA, you need to get permissions from organisations like RIAA, ASCAP, and BMI, which will assist you with recording rights to perform and distribute music. These licenses cover per-stream royalty rates that range from $0.003 up to $0.008 every play.

If you do not obtain the necessary licenses while creating your application, you may be required to pay substantial fines and face app shutdowns. Avoid roadblocks by purchasing permits in the beginning stages of development.

DMCA Takedowns and Copyright Bots

The platform you use should include a system to ensure DMCA compliance that efficiently handles requests to remove copyrighted content. In some instances, applications may use automated copyright robots to look over and upload content to check for violations. By using such tools, you can prevent unauthorized use and mitigate legal risk, thereby enhancing the credibility of your app.

Pro Tip: For content from independent artists, consider partnering with distributors to streamline licensing and expand the number of songs available for sale.

Roadmap to Development for a Music Streaming App Like Spotify

Making the Spotify alternative involves several steps, which include the following:

Ideation and analysis

Conduct a thorough investigation of your competition, target market, potential market, and other relevant organizations. You’ll understand your customers’ needs and tailor your efforts to meet them. Pick a topic, and then record your thoughts. Take the appropriate app and business decision.

Ensure that your app aligns with your company’s ultimate goal, as it will enable you to address a range of issues. It is essential to include a comprehensive checklist for creating the app, as well as a detailed plan of action.

Select the Correct License

A valid license is vital to ensure the proper operation and legality of your streaming app. If you plan to create an app similar to Spotify, the platform you choose to build must be able to obtain the following licenses:

  • Sound Recording License Agreement
  • Musical Composition License Agreement
  • Public Performance Rights from organizations such as BMI or ASCAP
  • The license is issued by European Stage Authors and Composers

Additionally, depending on the market you are in, you may need to obtain permits under local laws and regulations.

Consider the Main Spotify-like App Features

A Spotify-like app should include features such as registration and sign-in for music discovery, social sharing, push notifications, playlists, etc.

These are essential features for the music streaming app development process, such as Spotify

Management of Profiles (Register and Login)

With various modifications and base data, the process of starting your own business in the music streaming field is much easier than you might imagine. Registration on the live audio streaming platform is inexpensive and easy through social media sites, allowing users to sign up for additional memberships.

User Profile Authorization

Endpoints that can access the entire user profile are provided. To prevent spam interference, users are authorized to access a database that includes information about them, including their email address and password.

Audio Streaming

Discover more about audio streaming by exploring its unique platform and the radio streaming software capabilities that enable users to stay up-to-date with the latest releases of popular songs. The most recent album is now available to enjoy anytime on a variety of audio tracks.

Smart Search Tab

It is a platform that can be adapted to handle every track according to the user’s preferences, creating an optimal and comfortable zone. Users can browse as many as N tracks and pick their top tracks.

AI-based Music Recommendations

Naturally, listeners tend to concentrate on newly launched suggested curative playlists made available in line with their favorite genres or moods, as well as other factors. The developers of music streaming apps can benefit from the power of machine learning and AI development to enhance the user experience.

Management of the Playlist

Playing continuously, the user’s preferred audio plays while coordinating it by saving and changing music tracks, both online and offline.

Lyrical Display

It is possible to enhance the listener’s experience by adding greater interest through the inclusion of lyrics in your online music streaming app. To keep your users engaged with your music application, consider offering an option that allows lyrics to be continuously displayed as the music plays.

Download/Offline

Through offline access, you can download tunes from any device and listen to them anytime and anywhere, even without an internet connection.

Advertisement

The most important factor enabling Spotify to boost its revenue through its music streaming monetization platform is the capacity to generate revenue from every audio streaming service through advertising, offering advertisements, or videos.

Push Notification

A crucial element for connecting people to apps to get the most benefit from the latest updates from Artists, Community, and Friends in the circle of the app.

Events Calendar

Users can utilize this feature to determine the date their preferred arranger or musician will perform live or when podcasts are scheduled for release. It allows users to log back into their music streaming service without losing those performances that are recorded or in live form.

Social Media Sharing

Let your friends hear your favourite music by sending an email or a social media invite to everyone on your contacts list.

Profile of a Songwriter

It lets you identify and appreciate every lyricist by including extra notes and encouragement, as well as a method to discover who wrote the songs you love.

Designing Intuitive UI/UX Design

User Experience Design (UX design) can help consumers avoid getting lost amid numerous streaming apps by making them easier to use and more user-friendly. The design of the user interface is equally important. To define the layout and design, the app will begin by making wireframes.

Models for designs, including UX/UI, as well as the general design and layout of the apps, are developed. The design of Spotify’s UI/UX is one of the primary reasons people enjoy it. If you’re able to do the same, it will be competitive for many years.

The majority of people who listen to music won’t pay attention to the album’s cover (that isn’t a good thing!). But an effective UX/UI design can keep them from being distracted by the design and color scheme, and also help them focus on the right music.

Choosing the Right Tech Stack

Consider using JavaScript and Python, two of Spotify’s development tools, to build your app. Furthermore, PHP is used by Spotify to run its server-side applications, while Java is used for the back-end structure. As previously mentioned, Spotify keeps all music files in its device cache.

Utilize a universal memory cache method, such as PostgreSQL and Cassandra, to accomplish this. With the help of the Spotify player SDK, users can integrate Spotify functionality into their application. This set includes classes for managing streams and playing back audio.

The app handles decoding, digital rights management, and other agreements through Spotify’s backend. Your development team can recommend various methods, tailored to the exact feature set of your audio streaming application and your allocated budget.

To create a Spotify substitute, we recommend making use of the following tech stack:

  • Cloud platforms, such as AWS and Google Cloud
  • CDN like Amazon CloudFront
  • Back-end technology/languages like Node.js, Java, or Python
  • Databases like MongoDB, MySQL, PostgreSQL, or Cassandra
  • Search engines such as Elasticsearch or Solr
  • Front-end technology, such as React or Angular
  • Container technology, such as Docker and Kubernetes
  • Message broker, such as Kafka or RabbitMQ
  • Streaming technology like Wowza, Red5
  • Payment gateways, such as Stripe or PayPal

Frontend & Backend Development

The front and back parts of the software development process typically operate in parallel. In the case of apps, user interfaces are designed with the help of front-end designers. They are responsible for backend development, which includes managing terabytes of data storage, direct streaming, user authentication, and ensuring seamless connectivity with iOS or Android devices.

Before investing your entire cash, ensure that the plan you’ve chosen is the right one using an MVP (minimum viable product). MVP allows for cost savings and real-time user feedback, and in the best case, it could even be the first step towards achieving ROI.

Design your MVP

Creating an MVP is distinct from building a prototype. While prototypes are typically used to investigate a new idea or develop a design internally, an MVP is made for external validation and testing with real-world users. It’s crucial to recognize that an MVP doesn’t necessarily require a lot of construction or engineering. The purpose of an MVP is to evaluate your business’s hypothesis using the smallest amount of effort and expense.

An MVP may take various forms, each designed to collect specific feedback from your target customer group. Examples include:

  • Best version of product: The basic edition of the software, such as an app or website, is simplified and has only the most essential elements to support the primary value of the product.
  • Landing page: A website page that outlines your product’s concept to gauge interest and gather email addresses.
  • Explainer video: The explainer is a short video that describes the idea behind your product and its purpose, used to assess the level of interest and engagement of viewers.
  • Concierge test: Providing the service by hand in the background, similar to an automated version of the software.
  • Crowdfunding campaign: To assess market demand and obtain the initial funds.
  • Mock-ups or wireframes: The most basic images of the products, used to get early feedback on the layout and performance.
  • Feedback form or survey: Asking potential customers directly about their concerns and what they would like to know about the proposed solution.

These kinds of MVPs enable testing of the most important assumptions regarding your business concept using real customers, delivering useful insights at a minimal cost. The aim is to learn and refine your idea quickly, rather than creating a fully functional product from the outset.

Testing & deployment

After your app is complete, you must conduct testing to verify that all functions are working properly. Ensure your apps are also tested in real-world settings. Before releasing your app to users, gain hands-on experience with it to ensure it meets your expectations.

These steps require more intricate processes that may necessitate collaboration among different team members, such as developers, designers, quality assurance experts, and project managers. Therefore, the process is likely to require time and resources that must be managed efficiently and effectively.

Launch & Maintain

After you’re satisfied, you can publish your app on your preferred platforms, such as the Apple App Store and Google Play Store. To increase the number of downloads for your app, begin gathering reviews and ratings as well as promoting your app. After launching your music streaming application online, it is essential to start collecting feedback from users so that you can improve and add new features.

Cost Factors in Developing a Music Streaming App like Spotify

The general development costs for music apps range from $50,000 to $150,000. This is an entry-level version of a music streaming service, similar to Spotify. The price of music streaming services may vary based on several factors, including the incorporation of modern technologies, advanced features, and complex functions, which can increase the price.

In addition, it is also essential to consider other factors, including maintaining licenses, taking security measures into account, regular maintenance, and constant updates, which directly impact the overall development costs. Let’s examine each one of these factors in more detail:

Complexity of Apps

The complexity of the Spotify app is a factor that directly affects its price. The more complicated app, packed with features, will cost more than a simple application with fewer features and a simpler, less complex interface. The estimated cost for streaming music applications available on Android and iOS devices is calculated based on the level of complexity of the features.

UI/UX Design

A well-designed UI/UX is one of the most essential factors that impact the Spotify app’s development, including total engagement and retention rates. Ensuring that the app is seamless for the users it is aimed at requires that the app’s design be tested across a range of platforms multiple times. This is why the overall cost of Spotify developing apps is relatively high.

Application Platform

Selecting the most efficient and effective platform for creating a music streaming application, such as Spotify, is another factor that will determine the total amount of money needed for development. In this scenario, you can first select either Android or iOS to build your app, or explore cross-platform app development. 

However, there is no cost difference in developing Android and iOS applications. It is advisable to choose one that supports audio in a planned manner, moving forward with apps that are gaining more attention.

Size of Team

The number of people employed to develop live stream apps for Android or iOS applications directly affects the cost of Spotify development. Creating an internal team of app developers isn’t an easy task, as it involves hiring and managing the entire process from scratch to develop creative applications. The general recommendation is to outsource your music application development task to a dedicated team with app designers. The main benefit you will gain is a professional team with the expertise to reduce overall development costs.

App Maintenance

The development of a custom music streaming app doesn’t stop after you launch the app, besides the space it takes up. It is essential to ensure that your apps function properly and are free from bugs. In addition, incorporating the most recent technology that aligns with market trends is one of the most effective ways to ensure your app’s success in the years to come. Therefore, the entire app, including Spotify maintenance, will be a direct cost to you, as it will impact the app’s growth.

Tech Stack

A robust technology infrastructure to support Spotify’s mobile app may positively impact its overall performance in a highly competitive ecosystem. The app’s foundation is built on the latest technology, which can put your business on the path to success while providing a higher ROI. The technology stack of popular music streaming apps, such as Spotify for Android and iOS, includes straightforward ways to master new technologies and frameworks, thereby providing a better user experience for their users.

Rich Features Integrating

The inclusion of features directly influences the cost of your music streaming app like Spotify. A mobile app development company has an app that is loaded with features, manually listed to give you a quick advantage, while ensuring greater levels of satisfaction and interaction for its users. In this way, we’ve reached the part that looks ahead to the features that you should add to your music streaming application and the times that can help you stay ahead of rivals.

Based on the specifications, we have initiated the development process. We plan to add new features to the app, which will grow within your music streaming application, and also reduce the time required to develop feature-rich apps.

Location of the Agency

The location of the music app development company responsible for development will initially impact the overall cost of Spotify’s app. The location of the company that develops music apps will affect the overall cost of Spotify. For example, if you are looking to collaborate with a company in the region where you reside, such as Asia or Africa, the price will likely be higher than those located in the USA, depending on the period.

music streaming app development in usa

Monetization of Music Streaming Apps like Spotify

Let’s examine the most commonly asked question: “How to make money from a music streaming app like Spotify?” In the next section, we’ve provided some tried and tested methods you can employ for your app that is based on Spotify to earn revenue:

Freemium Model with Subscriptions.

Recent statistics indicate that Spotify’s 200 million global premium subscribers contribute a significant portion of the company’s revenue. One of the primary sources of revenue is through the freemium model. Spotify offers a free tier that includes ads, allowing users to access a limited version of the platform.

However, ads interrupting the experience make it easier for people to purchase a premium version, which offers ad-free content, offline downloads, and better audio quality.

Advertising

Another revenue source is advertising. Free-tier users are shown ads in both audio and video while browsing between songs. Brands can partner with Spotify to sponsor sessions or playlists (like Spotify’s “Sponsored Sessions” where users can watch a commercial during 30 minutes of unadvertised listening). The trick is to optimize the frequency of advertisements to avoid alienating Spotify users. For instance, the service makes ads brief and pertinent through its information on the preferences of its listeners.

Furthermore, Spotify allows artists or companies to promote their products or music through customized playlists and sponsored content. This type of native advertising is extremely effective, as it generates significant revenue while working seamlessly and enhancing user experience.

Partnerships and Licensing Deals

Make exclusive content available to labels, companies, or artists to entice customers and justify more expensive one-time or monthly fees. You may be able to negotiate favorable royalty rates with rights holders, or permit other businesses to utilize your platform’s technologies (such as recommendation algorithms) to cut costs and improve profitability.

Idea2App – Spotify-like App Development

Idea2App is the best choice for creating a personalized music app that resembles Spotify for your business. Idea2App, a prominent music app development company, utilizes its experience to create unique and customized solutions.

Our experienced team will ensure the seamless integration of the latest technological advancements, user-friendly interfaces, and a range of features that enable your company to enter the music streaming market confidently. Creating a music streaming app like Spotify using Idea2App can be an exciting adventure to establish your brand’s unique presence in the music streaming world.

Conclusion

A successful music streaming app like Spotify extends beyond playback and playlists. It requires you to navigate complex licensing frameworks as well as advanced features such as AI-backed recommendations and infrastructure.

You must consider all aspects of high-fidelity music, from real-time social functions to ensure secure DRM and efficient monetization. It is essential to ensure that all features align with your clients’ needs and market trends.

Choosing the right technology stack and development partner is equally crucial to the long-term success of your app. Are you ready to bring your concept to life as a stunning streaming app? Schedule a complimentary consultation with our experts in comprehensive streaming solutions.

FAQs

How can you develop an app like Spotify?

To create an app like Spotify it is necessary to follow these steps such as market research, defining the essential features (music library and search, playlists etc. ) Select the best technology stack, develop the user interface/UX, build the app, and integrate APIs to stream music and thoroughly test it before the app goes live.

What licenses are required to launch the app and stream music?

You’ll need an open performance license or a BMI license from ASCAP or BMI, as well as an electronic license from MLC and the Harry Fox Agency, to stream music online through your music streaming application legally. If you intend to stream all tracks, you require a master-use license from one of the labels.

What are the most essential features that are required in a music streaming app like Spotify?

They’re among the best cloud storage solutions, including Amazon S3, stream servers like Shoutcast, databases like MySQL, and programming languages like Swift and Kotlin for iOS, as well as Kotlin on Android.

How do you earn money from a music streaming app like Spotify?

There are many monetization options for a Spotify-like app USA. The most well-known model is the freemium one, which includes premium features such as in-app purchases, ad-supported models, and collaborations with brands for exclusive content, generating additional income streams.