How to Build a Music Streaming App: Features, Tech Stack, and Cost

Spotify crossed 205 million premium subscribers in 2023. Apple Music, Amazon Music, and TIDAL collectively hold another 150M+. The market is large, but building a music streaming app is not the same as building most apps. Licensing, audio delivery infrastructure, and personalization algorithms make this technically demanding from day one.

This guide covers how music streaming apps work, what features matter, what the tech stack looks like, and what a realistic build costs.

Image Source: MIDiA Research

By 2027, global music streaming users are expected to reach 1.12 billion -- the market is not slowing down.

Top music streaming apps by market share

Names of top music streaming apps

Spotify App

• Spotify is the leader in the music-streaming industry, with 205 million premium subscribers and 489 million monthly active users.

• The app offers a personalized music experience.

• Spotify's integration with Facebook makes it easy for users to share music with people.

• Spotify generates revenue through ads and premium subscriptions.

• The app is available in 79 countries and continues to dominate the music streaming market.

Apple Music App

• Apple Music is the second most popular music streaming app.

• The app generated $8.3 billion in revenue in 2022.

• The app has 88 million subscribers as of June 2022.

• But, in comparison with Spotify, the application needs robust sharing options.

Amazon Music App

• Amazon Music is a more advanced version of Amazon Prime Music.

• The app recommends playlists based on the user's listening habits and displays song lyrics on the "now playing" screen.

• Users can access many songs and albums and create their own playlists to share.

• Amazon Music has plan tiers for hi-resolution lossless audio called HD and Ultra HD, which is unavailable on Spotify.

Tidal App

• TIDAL is a global music streaming app that is famous for its high sound quality.

• The global music streaming app features an extensive music library, offline music capabilities, and personalized recommendations.

• TIDAL's estimated revenue ranges between $100 to $200 million per year.

How Do Music Streaming Apps Like Spotify Work?

Working principle of music streaming app Spotify

1. To make a music streaming app you will have to use servers to store and distribute music content to users.
2. Users can access the music content by downloading it through the app.
3. When a user searches for a song or artist, the app sends a request to the server.
4. The server then searches its database for the requested music and sends it back to the user's device.
5. The app may use caching to store frequently accessed music on the user's device to improve performance.
6. The music is typically encoded in a compressed format like MP3 or AAC to reduce file size and improve streaming speed.
7. Music streaming apps also use algorithms to suggest new music to users based on their listening habits.
8. Apps may also use social features to allow users to share playlists or see what their friends are listening to.
9. Music streaming apps often offer both free and paid subscription options with different features and limitations.
10. Finally, these apps rely heavily on data analytics to track user behavior and preferences, which helps them to improve their services and recommendations continuously.

Also Read: How to build live video streaming app

Features of an ideal music streaming app

Core features to include:

• Account registration: creates a personalized profile so users get recommendations based on listening history and preferences.

• Social login: lets users sign in with existing social accounts, removing signup friction.

• Easy navigation: a simple, intuitive interface so users can move between sections without friction.

• High-quality audio: streaming with adjustable quality based on connection speed.

• Extensive collection: a large library across genres and languages gives users a reason to stay.

• Personalized playlists: users create and save playlists by mood, genre, and artist.

• Push notifications: keep users updated on new releases, activity, and in-app events.

• Lyrics display: AI-powered continuous lyrics during playback improves engagement.

• Download option: offline playback lets users listen without an active internet connection.

How to create a music streaming app: key steps

To make a music streaming app, you need to consider the following:

• What type of music streaming app do you want to create?

• What features do you want to include?

• How will you monetize your music streaming app?

1. Find the right team

Finding experts is crucial to make a music streaming app. Two options are available to develop a music streaming app

Hire an in-house team

Hiring an in-house team to develop a music streaming app requires a large budget and time for recruitment and management.

Outsource to a software development company.

Outsourcing involves studying the vendor's portfolio, collecting client feedback, and signing a contract. This method will have a promising price-quality ratio. The provider will offer qualified specialists to make a music streaming app as per your requirements and monitor their work.

RaftLabs builds to a fixed scope, fixed timeline, and fixed budget. No scope drift mid-build.

2. Type of music streaming services

Before writing a line of code, decide which type of streaming app you're building. There are three common types:

• A music library app offers access to music under certain conditions, such as paid subscriptions or free access.

• A cloud storage app allows users to store their music in the cloud and stream it from anywhere.

• A radio station app has various radio stations arranged by specific themes and can provide streaming services to different devices.

3. Obtaining the license

• Music streaming services allow users to listen to music without purchasing, but owners need a license to use music content.

• To create a music streaming website or app, you must obtain Public Performance Rights.

1. The American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music Incorporated (BMI) in the United States handle Public Performance Rights.
2. In Europe, apply to the Society of European Stage Authors and Composers (SESAC) for Public Performance Rights.
3. In India, two organizations, PPL (Phonographic Performance Limited) and IPRS (The Indian Performing Right Societies Ltd) issue music licenses.

• Spotify obtains two types of licenses for streaming music:

1. Sound Recording License Agreements.
2. Musical Composition License Agreements.

• Understanding licensing is non-negotiable before you build. Streaming music without permission can result in a fine of $30,000 to $150,000 per song played.

4. Choosing the right tech stack

We suggest using the following tech stack for build a music streaming app like Spotify:

Cloud platformAWS or Google CloudCDNAmazon CloudFrontBack-endNode.js, Java, or PythonDatabaseMongoDB, MySQL or PostgreSQLSearch engineElasticsearch or SolrFront-endReact or AngularContainer technologyDocker, and KubernetesMessage brokerRabbitMQStreaming technologyWowzaPayment gatewayStripe or PayPal

So, that's how to build a music streaming app in the best way, considering the tech stack.

5. Develop an MVP of a music streaming app

It is important to develop an MVP to build your music streaming app. It helps you determine whether the app's outcomes meet your expectations. 

The MVP of your audio streaming app must have the following:

• A user-friendly music player that allows users to create playlists, add albums, etc.

• Offer multiple options, such as integrating signups via social networks like Facebook or Google.

• Provide a search function that allows users to search for music by artist, title, etc.

• The provision to browse and download their favorite tracks.

• Create, share, or delete playlists.

Developing the MVP requires careful planning and execution. You will have to

1. Locate the target audience.
2. Plan on the essential features to implement.
3. Integrate with third-party services if required.
4. Get feedback from early users.

It will help you understand your app's glitches and create the best final version to release in the market.

How Much Does It Cost To Build A Music Streaming App Like Spotify?

The key factors that can affect the cost of your music streaming app development are:

• Platform: iOS, Android, or both. The cost of developing custom software varies by platform, and building for both adds scope.

• Features: more features mean more development time and cost.

• Design: a polished, user-friendly interface requires more design and front-end work.

• Integrations: connecting APIs, SDKs, and third-party services (payment, analytics, CDN) adds to the build cost.

• Maintenance and updates: post-launch upkeep, bug fixes, and feature updates are ongoing costs to budget for.

The cost of developing a music streaming service typically ranges between $15K and $25K, but can increase to around $50,000 for an app with more advanced features. The final pricing will depend on your specific requirements.

How to Make Money Using a Music Streaming App?

There are several ways to make money using Spotify like app. Three of the most popular methods are freemium, subscription, and advertisements.

Freemium: the app offers basic features for free and advanced features for a fee. Spotify uses this model to attract users and upsell premium subscriptions for ad-free listening, offline playback, and better audio quality.

Subscription: the app charges a monthly or yearly fee for unlimited music and personalized features like playlists and offline playback. Apple Music and Tidal use this model because it produces predictable revenue.

Advertisements: targeted ads played before or during songs generate revenue from free users. Too many intrusive ads drive users away, so the balance between revenue and user experience matters.

So, that's how to monetize your music streaming app effectively.

Revealing The Secret Elements Behind The Music Streaming App, Spotify’s Success

Spotify's success is due to its extensive user account customization and hyper-personalized features. The app encourages users to create their playlists and build a music library on their accounts.

Spotify uses specially developed algorithms to analyze enormous amounts of collected data to understand users' preferences. Python, JavaScript, PostgreSQL, and a memory caching system make the fundamental components of the Spotify technology stack.

Spotify’s true fame comes from its discovery algorithms, which analyze user data and behavior to provide a personalized user experience, especially in areas like AI music. Users can like or dislike songs; the app stores this information in their preferences section along with the artist, album, and song details. Spotify also analyzes what tracks users skip or listen to until the end to offer tracks that suit their taste.

How To Create a Music Streaming App That Works Best For You In The Long Run?

Here's how to create a audio/ music streaming app that works best for you in the long run:

1. User customization: give users the freedom to create playlists and build their music libraries.
2. Data analysis: use algorithms to analyze user data. Python, JavaScript, PostgreSQL, and memory caching are the core technology stack components.
3. Discovery algorithms: build algorithms that learn from user behavior, letting users like, dislike, and give feedback on songs, artists, and albums.
4. User experience: understand what users skip or listen to, and use that data to suggest music they're likely to enjoy.
5. The combination produces a streaming app built for long-term retention and user satisfaction.

In this way, you can create a audio/ music streaming app that's tailored for long-term success and user satisfaction.

Wrapping Up

Spotify dominates the market by combining strong algorithms, a deep music catalog, and highly personalized content recommendations. However, this presents an opportunity for new players to enter the market and capture their share of success in the field.

Choosing the right development team is also critical to ensure that your app stands out from competitors and delivers an exceptional user experience.

At RaftLabs, we can provide you with the expertise and experience you need to create a successful music streaming app that meets your users’ needs and expectations.