The way consumers look at music has evolved over the past decade immensely and the way businesses operate has crossed new boundaries alongside as well. It is time for you to explore what the music industry has to offer now, and how your app could play a bigger role in the ecosystem.
We are no longer dependent on the radio to consume music. Streaming platforms changed the game altogether. Whether it is Netflix for video or Spotify for music, subscription-based services are setting a new pathway for the future.
If we look at figures, Spotify has over 422 million users right now and the number continues to grow as consumer trends keep evolving. Over 182 million users are premium members who are willing to go the extra mile for quality music and podcasts. Apple is not that behind as well. With 78 million subscribers, it has people hooked up.
Right now, if you want to build a digital product that is affiliated with the music industry, the likes of Spotify are the perfect example to follow. Learn and adapt. See what will work with your app and adapt. It is easier than ever.
Keep reading as we go through a detailed breakdown – of how a mobile development New York based company can help you create an app similar to Spotify.
Monetization Model of Spotify
We understand that you should ideally focus on the features and functions but in terms of business and generating eventual revenue to stay on top of the board – your monetization strategy should be clearly defined as well. Now, Spotify has a simple premium subscription service and ads for free users.
This way – Spotify covers both demographics – those who are willing to pay and those who would rather prefer limited services from Spotify. The goal should be to provide the same access to both while maintaining a separate monetization strategy.
Running ads
It is important to learn that Spotify has multiple stakeholders involved. The artist, the end-user, and the brand they partner up with. Spotify charges brands on a cost-per-click and cost-per-mile cost. It all works out as users on a free account have to go through an ad (a minute long at most) while streaming a song.
Advertising through ads during intervals is an old-school practice and still works efficiently for a quarter of the total revenue. Ads account for over 12% of the total revenue. Considering the reliance on premium subscriptions and the loyalty due to artists, it is a fair deal.
Premium Subscription
A Spotify premium subscription is exactly as you would expect. No ads, better music quality, the choice to shuffle through multiple playlists, and downloading music for offline use. Also, it is important to acknowledge that Spotify clearly understands the audience it has. There are different and inclusive plans for students and families. Students get a discounted package while a family can get a combo package for the entire house.
Spotify also acknowledges how with a global presence – the company needs to diversify the pricing plans. A standard premium account in North America would cost a lot more than let’s say – India or Pakistan.
Must-have Features in an App Similar to Spotify
The features you decide to incorporate should not necessarily reflect the themes and ideas of Spotify but for inspiration and knowing what works with consumers – you can adopt a few features. Here are a few features we suggest you must include in your next app:
A music activity panel
Consumers who are passionate about music are into collecting different pieces and categorizing them by their own choice. You will need to communicate with the design and development team to create a panel where consumers would be able to collect and organize music. The idea of multiple customized playlists still exists and thrives.
A discovery algorithm
For a music platform to succeed, you need to design it with a discovery approach. The app should be designed to be extremely personalized, eventually learning and adapting how a user searches music and the kind of genre they like. Spotify creates exclusive playlists for its audience and the approach works flawlessly.
People discovering new music through an app and knowing that the suggestions would be more than routinely random generated playlists is what makes them stick around longer. A custom software development company should ideally look at generating AI-based playlists that recommend music that matters.
Create an App: Steps to Follow
When we are stepping into the music industry, it should be cleared out that a lot of legal rules will govern how the workflow will look and the extra precautionary steps you will have to take. We understand that it might seem overwhelming but once you know what to expect already, everything streamlines and becomes easier.
Licensing
Spotify is in contract with various record labels. The different agreements are formal proposals that define how music will be distributed and aligns with artists and companies alike. Similar to Spotify, you will need a whole legal distribution channel during the research and development (R&D) where a team would be willing to set all kinds of contracts beforehand.
Finding resources
Once you go beyond research and the actual development process starts, the resources you select, and the people you partner up with will define the entire app development journey. Take your time. We cannot provide an exact estimate but it should be noted that the country your partner will be based in will define the cost.
- South Asia – $15 to $80/hour
- North America – $70 to $250/hour
Western Europe – $40 to $150/hour
You can see how hourly wages differ around the globe and what you should ideally be adopting. More than the region a flutter app development company or any other corporation is based in – you should ideally be looking at their portfolio and the kind of services they are promising to offer.
Tech stack required
On the development side, the toolkit you use will define how smooth the entire workflow will look and how different phases will align with each other. Spotify uses a diverse set of frameworks and each plays an individual role, eventually coordinating into a collective goal.
If you are looking for a set of industry-standard tools, here are a few technologies that Spotify uses:
- Business tools: G Suite, Adroll, Qualaroo
- DevOps: Helios, Percy, Docker
- Utilities: Google Analytics, Google Cloud Dat, Lookback
- Application and Data: Python, Java, Amazon S3
Final Thoughts
It should be understood that creating an app similar to Spotify or any other app for that matter will require different phases and everything should be clearly defined for an ideal workflow to take place. From market research to launching a digital product and dealing with the aftermath support of it, there will be a lot of challenges.
But once you know what to look forward to – it will be a smooth ride. The music industry is already projected to grow exponentially. It is the perfect time to step in the ecosystem and see how streaming will evolve.
