Do you want to multiply your profits?
Are looking for a profitable app niche to achieve your business goals?
Have you ever thought about exploring music streaming apps!
And why so?
Okay, we got it. You don’t think music apps is a profitable niche. Is it?
Well, that’s not true!
Music Streaming App has emerged as one of the most profitable niches in the past few years.
Hard to believe. Is it?
We like talking facts. And so, here’s some data:
- According to a report by SensorTower, music apps Spotify and Pandora were among the top grossing apps, in Q4 2016.
- Some of the music apps Spotify, SoundCloud and Amazon Music have more than 100 million monthly active users.
- Moreover, many industry experts have predicted that global music streaming will grow at a CAGR of 13% by 2020.
Now that’s quite a number!
Because of changing music consumption patterns!
Over the past few years, music consumption patterns have changed dramatically. According to a report published by Statista.com, streaming apps forms around 76.4% of total music consumption.
Today, most of the users prefer to access premium and personalized content. And apps like Spotify successfully taps into this need for customization!
Cloud-based music apps like Spotify allow the users to browse (their favorite music genres), stream, store (if they want), download and even share their favorite tracks, anytime and at any place.
In short, it places the remote control in user’s hand. They can listen whatever they like, by creating a customized playlist. And that’s precisely the reason why music apps have gained a trajectory in the market.
Long story short, investment in music apps is certainly a smart move!
So, you are tempted to take a plunge, explore the niche and earn $$$.
But, something is still bothering you.What is it?
What is it?
Do you the fear competition?
Well, why don’t you see this way – Competitions are healthy. Because you already have validated the potential of niche. All you need is an out-of-the-box idea which resonates with the users. Result – Good ROI.
You can even identify a sub-niche to appeal a specific set of users and turn your app into a money-making machine.
For example, you can create an exclusive app for users to stream the latest tracks/albums by independent artists from different countries.
These are just a few ideas. Think creative, create an app for the user and you can surely hit the bull’s eye!
Remember, to create a successful app it is important to do some market research and learn what the users want. This helps you in two ways:
- You learn more about your competitors, what they offer and what makes them successful. You can even avoid pitfalls encountered by your competitors.
- Most importantly, you strike the right chords. How? Market research helps you deliver exactly what users want.
But, you are still stuck.
You cannot figure which monetization model to adopt?
Most streaming apps are Subscription-based. Spotify, the #1 music streaming app earns a large part of its revenue from subscription. How? Out of 100 million Spotify users, more than 50 million have subscribed.
How subscription based is music streaming app works?
Subscription-based are free to download. However, users cannot access all content. They need to pay few $$$ to unlock the premium or exclusive content. For example, only subscribed users can listen to weekly chartbuster tracks.
Is it the best monetization model?
We would not call it the Best. But certainly, it is the ideal model for a streaming app.
Why ideal? Because streaming apps are content-based. Latest content is added or the existing one is updated. In short, it is not constant. A paywall to unlock the latest content will bring in the cash.
You know you can even earn from the free content. How?
Simple – Place in-app ads. Yes, you can earn through in-app advertisement. But just remember, you place them wisely, otherwise, it can back-fire!
Does Music streaming apps require any license?
Yes, it Does!
And who will get the license – Developers (Us) or You (the Appreneur)?
First thing, we developers do not obtain the license. Actually, we don’t require any license for the development/design purpose. We just upload the data/content provided by the appreneur i.e. You!
Therefore, you (the appreneur) need to obtain a license from Master recording license from the respective labels/record companies or artists.
A proper license/permission is required to use any musical track in your app. Failing to obtain a license is a legal offence. Well, you (your company) can even be tried in the court of law for piracy.
In the end, we would just like to tell that music streaming market isn’t an easy market to enter. You need advanced technological knowledge and an insightful business/marketing strategy to taste the success.
Contact Our App Consultants at firstname.lastname@example.org to get more insights on music app development.