In the age of digital streaming, music apps have become the primary source of entertainment, with music streaming app like Spotify dominating the charts in the top spot as one of the most popular platforms worldwide. However, beneath its sleek interface and vast catalog of songs lies an intricate structure worth examining.
For budding entrepreneurs as well as established companies, studying the costs of creating app like Spotify can be an exciting experience. It’s not just about maintaining an existing library of songs and adding advanced features, but also about ensuring an enjoyable user experience and maintaining the app’s quality, even in the face of increasing competition.
This detailed guide is designed to unravel the intricate process of creating a high-quality music streaming app like Spotify. We’ll review the key features of Spotify and the costs that give it a market edge and provide an estimate of the costs that could be incurred.
If you’re considering getting into the world of streaming music apps or are simply curious about the process involved in making a stunning piece of art, you’re sure to be entertained!
What is the Spotify App?
The Spotify app is among the most well-known music streaming apps, providing users with access to an extensive collection of music and podcasts from a variety of musicians worldwide. Spotify offers both free and premium subscriptions, allowing users to listen to their favorite music while discovering new songs.
It’s built on personal suggestions. It’s user-friendly and available to a wide range of devices. This has also changed the way we listen to music.
Spotify is a powerful and feature-rich mobile application. If you’re planning to create a music app like Spotify, it’s essential to be aware of the basics and challenges of developing an effective music streaming application.
Understanding the Spotify Model
Spotify’s market share is approximately 31% and has since become one of the most renowned streaming services globally. The Spotify application operates on an open-source model, offering both subscription and free plans. Users can access the platform and listen to a wide variety of music. The premium edition of Spotify includes ad-free features. You can also opt for an offline account. If you select the premium option, you will be able to enhance audio quality.
It is no surprise that the Spotify company model received interest from a wide population. It also helps convert many users into paying customers. Spotify earns revenue through collaborations and playlists with branded music and provides data-driven advertising solutions to various companies. Spotify utilises data to deliver targeted advertising. By generating revenue, Spotify can maintain its status as market leader. This business model has helped the company expand its services globally.
Music Streaming Market Stats
Music streaming apps are online, on-demand applications that enable listeners to play, browse and save music from a wide range of styles, genres and artists.
The app doesn’t need an introduction, since we’ve all been using music streaming services for quite some time. Spotify, Shazam and Pandora are but three of the most popular music streaming apps. After we’ve got that done, then we can begin to explore the market using the data:
- The streaming of audio in the UK marketplace is estimated to reach £34.53 billion in 2022. The market is projected to be £103.07 billion in 2030, with an expected CAGR of 14.4% from 2023 until 2030.
- The increasing use of mobile phones, the rise in internet connectivity and a growing demand from customers for streaming services are all factors that boost market expansion.
- Music streaming accounts for 84% of the industry’s earnings.
- Nearly 600 million people worldwide are enrolled in online music services.
- The majority of the population listens to music via streaming services. The majority of people listen to music on streaming services, with YouTube being the largest and most widely used platform (2.5 billion), followed by Tencent platforms (over 800 million) and Spotify (381 million).
- Music streaming apps earned £43.3 billion in revenue in 2022. This represents a 15% increase from last year.
This is precisely why on-demand apps are so popular among both businesses and investors.
Key Features to Include in a Music Streaming App Like Spotify
Music streaming apps come with distinct features, which make them extremely complex services. When developing an app designed to stream music, it’s essential to consider several key elements. To simplify the process, we’ve outlined the most important functions you’ll have to add to your application.
The list isn’t inclusive of typical functions like authorisation, social network integration, push notification or music sharing, as these features are included in almost all mobile applications.
Subscription
To make your users more comfortable and improve user experience, you should allow users to sign up at no cost. They will be able to log into your music services through their existing accounts on Facebook and Twitter.
AI Recommendations
Artificial intelligence is a vital aspect of developing software that can stream music. Because a large portion of people love to discover new songs, they’re more willing to listen to suggestions that are tailored to their preferences and listening habits. You can ask to label the songs you really enjoy or dislike, which will help the AI track your preferences.
Searching for Music
Your customers can look up any music or podcast using the search function. The tags should be able to identify artists, albums, tracks, genres and labels.
Music Player
User interfaces of music players are usually user-friendly. Apart from the tracks’ sound, this player features controls for volume and buttons for playing, pausing and switching between tracks. Alongside the album’s layout, it also shows information regarding the album. The image of the track can replace the cover artwork of particular streaming audio programs. To draw users’ attention, it is essential to ensure that the information is not used in any way before its intended purpose is fulfilled.
Audio Streaming
Streaming lets you stream audio or video quickly and continuously over the Internet. It allows users to listen to music they have previously purchased via the service, eliminating the need to purchase it individually.
Podcast and Radio
In addition to streaming music, many apps offer podcasts, radio stations and audiobooks.
Lyrics Display
A variety of streaming music apps can provide lyrics to songs. However, certain apps also connect them to the music that is playing. Apple Music, for instance, is a prime example. You can easily find and listen to certain lines of a track using it.
Playlist
This feature allows users to save their favorite songs on a music streaming application and then create playlists based on the songs they love.
Offline Mode
It is highly beneficial to listen to your favorite tracks while walking through a forest using unstable internet connections and then download the tracks onto an application that streams music. A variety of features can create problems and confusion within your mind. This can be avoided by starting with the initial design and development of the application.
Licensing & Legal Considerations
Utilising knowledge of legal issues when developing the music streaming application will protect your business from potential legal action. They can assist you in navigating the complex world of rights management and help ensure that artists are properly compensated. Here are the US-specific laws to keep in mind regarding providing lawful compliance to your streaming music app.
RIAA/ASCAP/BMI Licensing Costs
If you create an application to stream music in the UK, you must obtain permissions from organisations such as the RIAA, ASCAP and BMI, which are necessary for the recording rights required to play and distribute music. These licenses cover royalty rates per stream, ranging between £0.003 and £0.008 for each play.
If you don’t get the required licenses when developing the application, you could have to settle large penalties and risk the app shutting down. Be prepared for obstacles by obtaining permits early in the development process.
DMCA Takedowns and Copyright Bots
The platform you choose must incorporate a system for DMCA compliance that effectively handles requests to remove copyrighted content. In some cases, apps may utilise automated copyright detection robots to scan and upload files, identifying potential violations. With these tools, you can prevent illegal use and reduce the risk of legal liability, thereby enhancing your credibility.
Pro Tip: For content from independent artists, consider partnering with distributors to simplify licensing and increase the number of songs available for purchase.
Roadmap to Development for a Music Streaming App Like Spotify
The process of implementing the Spotify alternative requires several steps, including the following:
Analysis and ideation
Conduct a thorough study of your competitors, your chosen market and other relevant organisations. You’ll know your customers’ requirements and adapt your approach to meet these needs. Select a topic and then take notes. Select the right app and make an informed business decision.
Ensure your app aligns with the company’s goals and enables you to solve a wide range of problems. It is crucial to provide a thorough checklist for developing the application and a specific plan of action.
Select the Correct License
The validity of a license is crucial for the safe operation and compliance with the law of the streaming app. If you intend to develop an app like Spotify and other platforms, the platform you decide to build on should be able to acquire one of the licenses listed below:
- Sound Recording License Agreement
- Musical Composition License Agreement
- Public Performance Rights from organisations like BMI or ASCAP
- It is granted to European Stage Authors and Composers
In addition, depending on the area you’re in, you might have to get permits in accordance with specific local regulations and laws.
Consider the Main Spotify-like App Features
A Spotify-like application should feature registration and sign-in, music discovery, social sharing, push notifications, playlists and more.
These are vital features to the creation process, including Spotify
- Management of Profiles (Register and Login)
With numerous variations and a database, the process of establishing your own company in the music streaming field is much simpler than you think. Signing up for the live audio streaming platform is affordable and simple through social media websites, which allows users to join multiple memberships.
- User Profile Authorisation
Endpoints with access to the complete user profile are available. To avoid spam, users are granted permission to access a database containing details about them, such as their email address and password.
- Audio Streaming
Find out more about the benefits of music streaming with the help of its distinctive platform, as well as the radio streaming software features that allow users to stay informed about the most recent releases of top tracks. The latest album is available to listen to at any time on a range of different audio tracks.
- Smart Search Tab
It’s a platform that can be modified to manage every track according to the user’s preference, resulting in an ideal and relaxing zone. Users can search up to N tracks and choose their favorite tracks.
- AI-based Music Recommendations
Naturally, music lovers tend to focus on the latest suggested playlists that are curated in accordance with their preferred genres or moods, in addition to other aspects. Music streaming apps can benefit from the advantages of machine learning and AI development to enhance the user experience.
- Management of the Playlist
Continuously playing, the music player’s preference is played while it coordinates by saving and changing tracks both online and offline.
- Lyrical Display
You can improve the experience of your listeners by bringing more interest to the experience by incorporating lyrics within your online music streaming application. To keep users interested in your music app, consider introducing a feature that allows lyrics to be displayed continuously as music plays.
- Download/Offline
With an offline connection, you can download songs on any device and play them at any time, anywhere, even without an internet connection.
- Advertisement
The main factor that allows Spotify to increase its revenue by monetising its music streaming platform is its ability to earn money from every audio stream by displaying advertisements, providing ads or even videos.
- Push Notification
An essential element to connect users to apps so that they can get the maximum benefit from the most recent updates from Artists, Community and Friends within this app’s circle.
- Events Calendar
Users can utilise this feature to determine the day on which their preferred musician or arranger will perform live or the date that podcasts are scheduled for release. Users can return to their music streaming service without losing the performances that were recorded or live.
- Social Media Sharing
Ensure your friends can listen to your favorite music by sending an email invitation to social media to everyone in your contact list.
- Profile of a Songwriter
It allows you to identify and appreciate every lyricist, adding notes and encouragement and also provides an opportunity to discover who wrote the songs that awe you.
Designing Intuitive UI/UX Design
UX Design (UX design) can help users avoid getting lost in the sea of streaming applications by making them simpler to navigate and more user-friendly. The layout of user interfaces is also crucial. To determine the layout and style, the app will start by creating wireframes.
Design models, which encompass UX/UI design as well as the overall layout and design of the apps, are created. Designing Spotify’s UX/UI is one of the main reasons people like it. If you’re able to achieve a similar level, you’ll remain competitive for years to come.
A majority of people who listen to music don’t pay attention to an album’s front cover (that isn’t good!). However, a well-designed UX/UI can help them avoid being distracted by both the style and the color scheme. It can help them focus on the music they want to hear.
Choosing the Right Tech Stack
Consider using JavaScript and Python, which are the development tools of choice for Spotify, to create your application. Additionally, PHP is used by Spotify to manage its server-side apps and Java is used to build the back-end structures. As we mentioned, Spotify stores all music files on its device’s cache.
Utilise a universal memory storage technique, such as PostgreSQL or Cassandra, to achieve this. With the aid of the Spotify player SDK, customers can incorporate Spotify features into their applications. This set contains classes to manage streams and listen to audio.
The app manages decoding digital rights management and other agreements via the backend of Spotify. Your development team will be able to suggest various strategies, customised to the specific feature set of your application for streaming audio and your allocated budget.
To build a music app, we suggest using the following tech stacks:
- Cloud platforms, for example, AWS and Google Cloud. Google Cloud
- CDN as Amazon CloudFront
- Back-end technology/languages such as Node.js, Java or Python
- Databases like MongoDB, MySQL, PostgreSQL or Cassandra
- Search engines like Elasticsearch or Solr
- Front-end technology such as React or Angular
- Container technology, like Docker and Kubernetes
- Message broker, like Kafka or RabbitMQ
- Streaming technology such as Wowza Red5
- Payment gateways, like Stripe or PayPal
Frontend & Backend Development
The back-end and front-end parts of the software development process typically work in parallel. For applications, the user interfaces are created by front-end designers. They are responsible for backend development, which involves managing hundreds of terabytes of data storage, direct streaming, user authentication and ensuring seamless connectivity to iOS and Android devices.
Before investing all of your money, ensure that the strategy you’ve chosen is the correct one that has the MVP (minimum viable product). MVP offers cost reductions and real-time feedback. In the best scenario, it may even be the initial step in getting ROI.
Create your MVP
An MVP differs from creating prototypes. Although prototypes are usually employed to explore the possibility of a new idea or to develop the design internally, an MVP is created to test external validation and verification in real-life settings with users. It’s essential to understand that an MVP doesn’t require extensive design or construction. An MVP aims to test your company’s proposition with the least amount of time and effort.
An MVP can take a variety of forms and each one is designed to gather particular feedback from the targeted clientele. Examples include:
- Basic Version: The basic edition of the program, similar to an app or a website, is straightforward and includes only the essential components that support the primary purpose of the software.
- Landing Page: The page on your website that describes the idea behind your product to gauge interest and collect email addresses.
- Explanation Video: The explainer is an introductory video that explains the concept of your product and its objective, helping to gauge the interest and involvement of viewers.
- Concierge Test: Providing the service by hand, in the background, in a similar way to a software that is automated.
- Crowdfunding Campaign: For assessing market demands and then raising the first funds.
- Wireframes or mock-ups: The most basic images of the product, used to provide early feedback on design and its performance.
- Feedback Form or Survey: Asking potential customers directly about their questions and concerns, as well as what they would like to be aware of the solution proposed.
These types of MVPs enable testing the most crucial assumptions about your business’s concept with real customers, offering valuable insights at a minimal cost. The idea is to discover and develop your concept quickly, rather than creating fully functional products from the outset.
Testing & deployment
Once your app is finished and tested, you need to conduct tests to confirm that all functions work correctly. Also, ensure that your apps have been evaluated in real-world settings. Before releasing your app to users, you should gain experience with it to ensure it meets your expectations.
These steps will require more complex procedures that necessitate collaboration between various team members, including designers, developers, quality assurance experts and project supervisors. This means that the process is likely to take time and resources that need to be effectively and efficiently managed.
Launch & Maintain
If you’re satisfied with your app, you can publish it on one of your preferred platforms, such as the Google Play Store or Apple App Store. To increase the number of downloads for your app, start collecting reviews and ratings, as well as promoting your app. Once you’ve developed your online music streaming app, it is vital to start collecting feedback from users so you can make improvements and introduce new features.
Cost Factors to Consider for Developing an App like Spotify
The typical development costs for music apps range from £50,000 to £150,000. It’s a basic version of an online music streaming service, app like Spotify. The cost of music streaming services can vary based on several factors, including the use of advanced technology, premium features and complex functions, which can increase the cost.
Additionally, it is crucial to consider other aspects, such as keeping licenses current, making security considerations part of the process, regular maintenance and regular updates that directly impact overall development costs. Let’s look at each of these aspects in greater depth:
Complexity of Apps
The complex nature of the Spotify application is a factor that directly influences its cost. The more complex app, loaded with features, will cost more than an app with fewer features and a simpler interface that is less complicated. The cost estimate for streaming music apps accessible to users of Android or iOS devices is based on the degree of sophistication of the features.
UI/UX Design
A well-designed user interface is one of the most crucial elements that affect the Spotify app’s development, influencing overall engagement and retention rates. To ensure that the app functions seamlessly for its intended audience, the app’s style must be tested on a variety of platforms multiple times. This is why the total price of Spotify’s development apps is expensive.
Application Platform
The most efficient and reliable platform for creating a music streaming app like Spotify, is another factor that will determine the amount of money required to develop it. In this instance, you can first choose the platform you prefer, either Android or iOS, to develop your application or explore the possibility of developing apps for both platforms.
There is, however, no cost difference between developing Android and iOS apps. It is recommended to select the one that allows audio in a well-planned way and then move on to applications that are getting more recognition.
Size of Team
The number of staff employed to create live stream applications for Android or iOS apps directly influences the price associated with Spotify development. Creating an internal app development team isn’t easy, as it requires hiring and overseeing the entire process from scratch to develop innovative apps. It is recommended to delegate your music app development work to a team that is dedicated to designing your app. The primary benefit you receive is a skilled team with the knowledge to lower overall development costs.
App Maintenance
The development of a customised music streaming app does not stop when you open the application, aside from the space it consumes. It is crucial to ensure that your apps function properly and are free of bugs. Additionally, utilising the most up-to-date technology that aligns with current market trends is one of the most effective ways to ensure the future success of your app. Thus, the entire application, including Spotify maintenance, is directly costing you as it could impact your app’s expansion.
Tech Stack
A robust technology infrastructure can enhance Spotify’s mobile app’s overall performance, enabling it to compete effectively in a highly competitive market. Spotify’s foundation is based on the latest technology that can help your company achieve success and provide a higher return on investment. The technology stack of the most popular streaming music app like Spotify, available for both Android and iOS, offers simple ways to learn new technologies and frameworks, providing a better experience for their customers.
Rich Features Integrating
The addition of features directly affects the price that you pay for your music streaming app like Spotify. The mobile application development firm has an app loaded with features, which are listed manually to give you an instant advantage and ensure higher levels of customer satisfaction and interaction. In this manner, we’ve arrived at the part that looks ahead to the features you must include in your music streaming app and the timeframes that will keep you ahead of your competitors.
Based on these specifications, we’ve begun the development process. We are planning to add more functions to our app, which will enhance your music streaming experience and reduce the time required to create rich apps with features.
Location of the Agency
The location of the music app development agency will impact its initial price. The place of the company that creates music apps will impact the total price of Spotify. For instance, if you would like to collaborate with a company located in the region where you live, such as Asia or Africa, it is likely to be more expensive than collaborating with companies in the UK, based on the timeframe.
Monetisation of Music Streaming Apps such as Spotify
Let’s take a look at the most frequently requested question, “How to make money from a music streaming app like Spotify?” In the following section, we’ve listed some tried and tested methods that you can use for your application, which is based on Spotify, to make money:
Premium Model for Free with Subscriptions.
Recent data suggests that the company’s 200 million worldwide premium users contribute a substantial amount to the company’s earnings. One of the major sources of income is its freemium program. Spotify offers a free tier, which includes ads and provides users with a limited version of the service.
However, advertisements that interrupt the experience make it easier for users to buy premium versions, which provide ad-free content, offline downloads and higher audio quality.
Advertising
Another source of revenue is advertising. Free-tier users can see advertisements in both video and audio while listening to songs. Brands can work with Spotify to create playlists or sessions (like their “Sponsored Sessions” where users can watch commercials during 30 minutes of non-advertised listening). It is essential to maximise the frequency of advertisements to minimise annoyance among Spotify users. For instance, Spotify creates advertisements that are short and relevant by utilising the information it gathers on its users’ preferences.
Additionally, Spotify enables artists and companies to promote their products or music through personalised playlists and content sponsored by advertisers. This type of native advertising is extremely effective, as it generates substantial revenue while also enhancing the user experience.
Partnerships and Licensing Deals
Create exclusive content for companies, labels or artists to entice customers and justify the higher monthly or one-time fees. It is possible to negotiate advantageous royalties with rights owners or allow other companies to use your platform’s technology (such as recommendation algorithms) to lower costs and increase profits.
Partner with Bestech for Developing an App like Spotify
Bestech is the ideal choice for build a music app like Spotify tailored to your company’s specific needs. Bestech is a well-known company that specialises in developing music apps. We leverage our expertise to design unique and customised solutions.
Our skilled team will ensure the seamless integration of all the latest technological advances, along with user-friendly interfaces and a range of features that enable your business to compete confidently in the music streaming industry. Creating a music streaming app similar to Spotify using Bestech is an exciting experience that can help establish your company’s distinctive position in the world of streaming music.
Conclusion
A well-known music streaming app like Spotify goes beyond playlists and playback. Spotify requires users to understand complex licensing frameworks, as well as advanced features, such as AI-backed suggestions and infrastructure.
You should consider every aspect of high-quality music, from live-time social functions to ensuring safe DRM and effective monetisation. It is vital to ensure that the features you choose to use are compatible with your customers’ requirements and the market’s trends.
The choice of the right technology stack and developer is equally vital for the app’s longevity. Are you prepared to bring your idea to life in an impressive streaming app? Book a complimentary meeting with our experts in the field of streaming solutions.
FAQs
How can you make an app like Spotify?
To develop an app like Spotify, it is important to adhere to these guidelines, such as market analysis, delineating the most important features of music app development, choosing the most suitable technology stack, designing the user interface/UX of the app and incorporating APIs for streaming music. You must thoroughly test the app before launching it.
What licenses do you need to launch the app and stream music?
You’ll require an open performance license or BMI license issued by ASCAP or BMI in addition to the electronic license issued by MLC or the Harry Fox Agency to stream music online via your music streaming app legally. If you plan to stream all songs, you’ll need a master-use license from one or more labels.
What are the main features a music streaming app like Spotify should have?
They’re among the top cloud storage options, which include Amazon S3, stream servers such as Shoutcast and databases like MySQL, as well as programming languages like Swift, Kotlin for iOS and Kotlin for Android.
How can music streaming apps like Spotify make money?
There are various monetisation options for a Spotify-like app. The most widely known is the freemium model, which includes premium features such as in-app purchases, ad-supported models and collaborations with brands to create exclusive content. This can also generate additional revenue streams.
