The music market has undergone a real transformation in recent years. Faster, stronger, louder – this is how we could summarize the shift. The distribution channels, in particular, have evolved. Today, the market dances to the tune of streaming giants, especially Spotify, which controls a whopping 30% of the global market.
The following comes from Miquido, a company DMN is partnered with.
However, this may soon change. More and more artists and labels are voicing complaints about the model created by the Swedish streaming powerhouse, arguing that it benefits the largest players, while the rest only get crumbs. There is a strong possibility that new alternatives, or apps where streaming is just part of the full offering, will emerge soon.
If you’re also considering creating a music or music streaming app or incorporating this type of functionality into your application, this article is for you. Let’s examine both successful and failed projects in this niche, the biggest challenges, and the standards set by industry giants. Let’s check the pulse of the industry.
The Complexities of Building a Music Streaming App
In music streaming, there’s no room for errors. The competitiveness of this niche means that even the smallest design, UX, or functionality misstep can have serious consequences. This is compounded by issues of legal compliance, which are so critical in the music industry. What must you consider when creating such a solution?
Copyright and Music Licensing
Every streaming app must adhere to copyright regulations, which include securing the appropriate licenses from copyright owners such as labels, artists, and collective rights management organizations (e.g., ZAiKS in Poland or ASCAP in the US). Music licensing is a complex process, especially since different countries have unique copyright regulations. Streaming providers must ensure that every song is legally distributed and that royalties are paid in accordance with agreements.
Data Protection and User Privacy
Without personalized feeds and accurate recommendations, success in the streaming industry today is nearly impossible. However, this requires advanced user data processing, which is strictly regulated. In the EU, streaming apps must comply with GDPR – otherwise, they risk significant financial penalties. These regulations define how companies can collect, store, and process personal data, and specify user rights (e.g., the right to be forgotten, the right to access data).
Content Responsibility and Anti-Piracy Measures
When allowing content to be published by independent artists and creators (not affiliated with labels), a streaming app must prevent illegal music distribution and ensure it does not support piracy or intellectual property violations.
The GenAI boom has added even more complexity to this, as there is still no clear legal precedent for generative artificial intelligence and copyright. AI-generated content is based on data the model was trained on, though the original creators may not have given consent for this use. While the output isn’t an exact copy of an existing work, but a blend of millions of references, it’s challenging to determine copyright in these cases.
The same applies to “resurrecting” artists’ voices. The so-called “digital necromancy” or “posthumous art” is becoming more common among music creators. Here, too, there is no clear legal consensus, and the laws are somewhat ambiguous. In the GenAI era, a music streaming app provider must navigate these complexities, taking responsibility for potential violations.
Hitting the Wrong Note – What We Can Learn From Failed Streaming Projects
The music streaming industry is filled with stories of platforms that failed. These cautionary tales can serve as guideposts for companies entering the market. Many examples date back to when the music streaming industry was still forming.
Consider Napster– a platform that popularized P2P sharing and paved the way for torrenting. At its peak, it became a nightmare for music labels, with its widespread, unauthorized sharing of copyrighted songs eroding traditional sales and threatening artists’ livelihoods and label revenues. Legal actions from major players like Metallica ultimately forced Napster to shut down in 2001, marking it as both a catalyst for digital music disruption and a cautionary tale for unlicensed content sharing. Later, LimeWire followed a similar path, ultimately shutting down despite attempts at legitimacy.
Though the turbulent era of torrenting and platforms operating without licenses or against copyright law is now over, new platforms still encounter// issues. Recently, a celebrity-backed NFT platform called OneOf was accused of selling securities without SEC approval.One thing is certain – when it comes copyright and licenses, you shouldn’t play it by the ear. One wrong move is enough for the regulatory units to blow the whistle. But worry not – with our tips, you can prepare yourself for any eventuality.
Legal and Licensing Framework: Avoiding Pitfalls
How can you avoid mistakes when navigating these legal complexities? Start by understanding the types of licenses you need to obtain before distributing music through your platform:
- Mechanical licenses allow platforms to distribute and reproduce music, ensuring that songwriters and publishers are compensated for each play or download.
- Performance licenses permit the public playback of music, which is essential for complying with rights organizations that protect artists’ earnings from public broadcasts, streams, and live performances.
- Sync licenses are required for pairing music with visual media, such as ads or videos, which is increasingly significant in multimedia marketing and social media content.
Regional laws are also crucial, as countries have unique regulations on royalties, copyright, and distribution rights. Failing to acquire these licenses and comply with local laws can lead to legal battles, hefty fines, and even platform shutdowns. Peloton, a fitness app, serves as an example.
Though not specifically a streaming app, music is an essential part of Peloton’s user experience. In 2020, the company was sued for copyright infringement for using mechanical instead of sync licenses, which are necessary for music paired with visual media. Although Peloton emerged unscathed, the National Music Publisher’s Association (NMPA) sent a clear message.
Music apps are at the highest risk, but licensing issues can also impact streaming platforms and social media. Platforms like Twitch, for example, where internet content streaming is central, highlight the importance of acquiring proper licenses and ensuring compliance with regional laws. Twitch has already had some legal issues due to improper use of licenses and despite the deal with NMPA, its case serves as a cautionary tale for other streaming giants.
Engaging Users: Features That Keep Them Coming Back
Attracting users in a monopolized niche like music streaming is an achievement in itself. Keeping them engaged, however, is like climbing Everest! Much of this depends on habits – users already have standards from popular apps. On one hand, they may be looking for something new, something better, but on the other, they don’t want to completely change their routines. Finding the balance between these two aspects is key to success in this industry. So, which elements are absolute must-haves?
Personalized Recommendations
Successful apps today must offer personalized recommendations. The best algorithms subtly combine data on listener behavior in the app and their external online activity. Play history, interactions with tracks and playlists, other app actions, ratings, and demographics – all these factors are taken into account to create personalized music suggestions in apps like Spotify. There is also data on similar users, which the algorithm uses for community modeling.
Playlists and Social Sharing
Social features are becoming increasingly important in streaming, and the lines between music streaming platforms and social media are blurring. Including social media-like features in your app is essential to its success. It should allow users to easily and intuitively create, share, and follow playlists or favorite artists.
Taking a step further could mean integrating GenAI features, allowing users to interact with music in more creative ways. Personalized visualizations, blending favorite artists’ voices with music not in their repertoire – this could be the future of streaming. Your users will shift from passive listeners to artists and curators. However, remember to keep an eye on legislative progress in the GenAI domain – otherwise, you might find yourself on shaky ground.
Community Development – Identifying and Engaging Superfans
Building community is equally essential to engagement. Accurate recommendation are a foundation of a successful music app, but don’t forget that the users want to feel a part of a bigger whole. Including these features, you will strike a chord with them!
User Profiles: Implement features that allow users to identify as superfans (badges, special status, or exclusive content).
Rewards: Offer exclusive access to content, merchandise, early ticket sales, or special events.
Influencer Collaborations: Collaborate with music influencers and artists to create exclusive playlists, livestream events, or behind-the-scenes content. Encourage them to share their music journeys, favorite tracks, or curated playlists within the app to inspire fans and promote frequent engagement.
Community Features: Introduce forums or discussion boards where users can share their thoughts on new releases, concerts, and music trends.
User-Generated Content: Encourage users to create and share content, such as reviews, concert experiences, or music challenges.
Exclusive Events: Organize virtual concerts, Q&A sessions, or listening parties hosted by popular artists or influencers.
Music Challenges: Launch music-themed challenges where users can showcase their musical skills, such as remixing a song or creating a dance challenge.
Offline Listening: Integrate offline functionality to keep users engaged even without internet access.
Designing for Users: UI/UX That Elevates Experience
Streaming apps are our everyday companions. Similarly, apps that include streaming features (such as fitness assistants or social media platforms) are designed to serve us on the go, accompanying daily situations and filling breaks. This makes impeccable UI and UX central to their success. These apps should adapt easily to different devices and function smoothly in the background.
In a nutshell, they should “dance to the user’s tune,” providing a seamless experience whether at home, at work, on public transport, or while doing sports. To achieve this, particular attention should be paid to these aspects:
Simplified Navigation
Start with intuitive wireframes and mockups that outline a clean, easy-to-use interface, focusing on smooth navigation for users to interact with the app effortlessly. This process involves creating wireframes that act as a blueprint for layout and functionalities, allowing users to quickly understand the app’s structure.
Inclusive Design
Use mood boards and standardized design systems to ensure accessibility options, such as voice control and adaptive interfaces for users with disabilities. These systems allow for the consistent implementation of accessibility features across the app, making it more inclusive to a wide range of users. Additionally, usability testing can refine the app’s design to ensure it accommodates all users effectively.
Building a Scalable Backend: Meeting Growing Demand
Even the best UI design won’t work wonders if your backend isn’t strong enough. When faced with performance issues, users may change their tune instantly, fueling your churn rate. Think big and design your backend to adapt easily to growing demand. Paying attention to these aspects will pave the way for success.
Cloud-Based Solutions
Adopt scalable cloud infrastructure, allowing the app to handle high data loads and provide fast access to large music libraries. This setup ensures that user data is stored securely while offering rapid, on-demand access to streaming content.
APIs and Third-Party Integrations
Integrate essential APIs for streaming, analytics, licensing, and payment. Using third-party APIs from established providers broadens the app’s functionality, giving users access to a comprehensive music library and seamless payment options while enhancing the overall app performance.
Load Management and Optimization
To accommodate peak usage times, distribute server loads efficiently and optimize app speed. Load balancing techniques and data caching ensure that even during high-traffic times, users experience smooth functionality and quick response times.
Business Model Planning: Finding the Right Monetization Strategy
Although the subscription model dominates today’s streaming landscape, it is not the only path available. Much depends on whether music streaming is the core of your application or simply one of its flagship features. With a subscription-based approach, acquiring users can be challenging, which may lead to financial instability. However, once you establish a solid user base, this model can yield the most benefits. You can also combine various strategies or gradually shift from one to another, depending on your needs.
Subscription and Freemium Models
Provide different subscription options, from free ad-supported versions to premium tiers offering exclusive features. This approach allows users to experience basic functionalities for free while incentivizing upgrades to ad-free, premium experiences.
In-App Purchases
Introduce exclusive content or high-definition audio upgrades to increase user spending within the app. Offering valuable content upgrades can appeal to dedicated users willing to enhance their experience.
Ad Integration
Implement an unobtrusive ad model for free-tier users to maintain engagement without disrupting their experience. This can include audio ads between songs or visual ads that appear during less active moments in the app’s interface.
👉 Get the full ebook here: Soundscapes of Tomorrow
Building the Right Team: Expertise at Every Stage
When it comes to the complexities of licensing and copyright law, it’s wise to emphasize clear communication from the outset. You don’t have to do everything on your own—on the contrary, it’s worth enlisting the support of external experts who can protect you from making costly mistakes. A software development partner with legal expertise and experience in building music applications will help you identify potential roadblocks and address them before they lead to problems. You can march to your own drum, but fulfill your vision safely and responsibly!
Key Roles
Employ experienced professionals for frontend and backend development, UX/UI design, audio streaming, and legal compliance. This diverse expertise ensures each component is developed by knowledgeable specialists.
Collaboration
Promote open communication between designers, developers, and legal advisors, as it’s essential for aligning creative and technical goals with legal requirements, particularly around music licensing and data privacy.
Outsourcing or In-House Development
An in-house team allows for tight-knit collaboration, but partnering with a software development has many advantages over it. Collaboration with an experienced development company can reduce costs and streamline the development process, while providing access to specialized expertise and resources that might be challenging to build internally. A reliable partner can also offer flexibility, efficient project management, and scalable solutions that support growth, allowing you to focus on your core business with confidence.
Marketing and Promotion: Launching Your App with Impact
Starting with a bang won’t guarantee long-term success, but it does give you a strong advantage. You only get one market launch—use it to create hype and attract users seeking something new, something better.
In music streaming, influencers and artists can be instrumental in generating buzz. What could be more convincing for a listener than knowing their favorite musician prefers a platform, perhaps due to a more favorable compensation model?
Now, with growing discontent toward the dominant streaming platform, it’s a prime opportunity to attract artists. Make your mark on social media. Choose a powerful angle and stick to it. Strike a chord with users by offering something that other platforms can’t. Tidal, for example, ensured a strong market entry by standing out with high-quality audio and exclusive content from artists.
Pre-Launch Marketing
Build anticipation with targeted social media campaigns and partnerships with artists or influencers, driving awareness before launch. Early marketing strategies can generate excitement and secure initial user interest.
User Acquisition
Use app store optimization and paid ads to boost user downloads and attract early adopters. Strategic keywords and promotional techniques in app stores enhance visibility, while advertising widens reach.
Retention Strategies
Keep users engaged with personalized emails, push notifications, and access to exclusive content. Customized notifications can remind users of app features, introduce new content, and encourage repeat usage.
Budget Management: Controlling Costs Without Compromising Quality
In music streaming, managing costs is critical, as unexpected expenses can pile up fast. Licensing fees often spike based on region, artist contracts, and streaming volume, creating unpredictable costs. Maintaining high-quality audio and smooth, buffer-free streaming demands robust infrastructure, which drives up server and bandwidth expenses. Plus, personalized features, like recommendations and adaptive streaming, need complex algorithms and data processing—both costly and resource-intensive. Balancing these demands is key to delivering a top-tier user experience without breaking the budget.
Cost Breakdown
Plan for each development stage, including app design, coding, licensing, and marketing. Having a clear cost outline allows for better budgeting across essential functions.
Scalability Considerations
Set aside funds for potential scaling, updates, and the addition of new features as the user base grows. A flexible budget enables timely updates, helping the app adapt to rising demands.
Balancing Quality and Costs
Explore cost-control strategies that maintain high quality, such as choosing the right development framework and using cross-platform solutions.
Music App Development in Tune With Your Goals and Budget
Launching a new music streaming app or an app with similar features is, in many ways, a much greater challenge than in other niches. In addition to the usual requirements of app development, there are also legal compliance issues, including copyright law. And since this niche is highly competitive, you need to carefully plan your strategy from the start, considering everything from licensing to the billing model.
Developing a music streaming app in-house is complex and costly, especially without prior experience. The process includes project planning, design, development, testing, and deployment, each needing specialized skills. Selecting the right technology stack is essential, as it impacts performance, scalability, and user experience.
Total development costs, including hiring skilled professionals and the tech stack, can exceed $40,000 to $100,000, while marketing expenses can range from $10,000 to $50,000 or more, depending on strategy. With our expertise, we can deliver a prototype in just two weeks.
At Miquido, we streamline this process across every phase. From initial project planning to post-launch support, our team of experts ensures that each step is executed efficiently and that the technology stack aligns with your project goals. With over 12 years of experience in music and streaming app development, having delivered projects for top brands like Onkyo Music, Warner Recorded Music, and Abbey Road Studios, we help companies save significantly on both development costs and resources.
Contact Miquido today and let our experts guide your project from concept to launch. Let’s hit the right note together! Meanwhile, dive into the Soundscapes of Tomorrow, Miquido’s ebook on music app development and the future of streaming.