Music Streaming App

How Profitable Is A Music Streaming App? (Updated for 2024)

Pat Walls

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Updated: October 8th, 2024

How Profitable Is A Music Streaming App? (Updated for 2024)

So you want to start a music streaming app?

And the first question that came to your mind was, “well, are music streaming apps actually profitable?”

With a market size of $23.1B - there’s plenty of business to go around.

Especially considering:

You could start a music streaming app with as low as $1,000
Based on our data, music streaming apps generate an average of $1.21M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a music streaming app.

Let’s dive in!

Is a music streaming app profitable?

Yes, a music streaming app is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.21M per year with an estimated gross margin of 83%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your music streaming app.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your music streaming app is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a music streaming app worth it?

If you’re wondering if a music streaming app is worth it, the answer is a big YES. With music streaming apps, you have the potential to earn $1.21M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $23.1B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a music streaming app to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful music streaming apps case studies.

Examples Of Profitable Music Streaming Apps

Here are a few examples of profitable music streaming apps, and a few more details about them:

1. Streamloots ($1.8M/year)

Vicent, co-founder and CMO of Streamloots, came up with the idea to help streamers monetize their audience and not rely on third-party platforms like Twitch, Youtube Gaming, or Facebook Gaming. They created a marketplace where viewers can buy real-time interactions with streamers, allowing streamers to sell the gift of interaction in the form of chests. They have since grown to have a community of more than 12K active streamers and earned over $1M in revenue in the last quarter.

Is it profitable? Yes
How much money it makes: $1.8M/year

How We Started A $150K/Month Platform Where Streamers Can Monetize Their Audience

Streamloots is a marketplace where viewers can buy real-time interactions with live streamers, allowing content creators to monetize their audiences and earning over $1M in just the last quarter with a community of more than 12K active streamers.

Read this case study

Read by 11,137 founders

2. Music For Pets ($1M/year)

"In 2011, Amman Ahmed decided to invest what was left of his student loan in a company called Roundwaves, to make soothing audio to help busy people unwind.

He found composer Ricardo Henriquez online, and they started working together on a series of relaxing audio tracks.

However, both quickly noticed that not only were humans pleasantly zoning out to the backing tracks, but pets were responding as well.

Henriquez is based in Central America’s smallest country, El Salvador, a country known in part for infamous gangs such as MS-13.

His dog Zuki suffered from anxiety whenever the noises of gun violence filled his neighborhood, so he came up with the idea of composing specifically to relax his dog. "

Is it profitable? Yes
How much money it makes: $1M/year
How much did it cost to start: $1K

How This Guy Built A $1M Business Helping Your Pet Relax

Discover how Amman Ahmed turned a $50 investment into a $9.6 million/year business by creating soothing audio tracks for pets on YouTube, Spotify, and more, with only $5,000 spent on marketing over the years.

Read this case study

Read by 7,607 founders

3. OnlinePianist ($840K/year)

Nimrod, CEO & co-founder of OnlinePianist, came up with the idea after experiencing a personal crisis and deciding to pursue his dreams. He wanted to play his favorite songs on the piano and found that traditional video tutorials were limited, leading him to create an interactive app with animation and additional features. Through creative marketing strategies, such as releasing video tutorials on YouTube before the official release of popular songs, OnlinePianist was able to attract highly targeted traffic and retain customers.

Is it profitable? Yes
How much money it makes: $840K/year
How much did it cost to start: $10K

How I Built An $840K/Year Piano Tutorial App

OnlinePianist is a profitable business generating $70k in monthly revenue, with 6 million global downloads and customers in more than 20 countries, offering the largest catalog of piano tutorials outside of YouTube with 3,000+ tutorials, and has plans to expand its capabilities to listen to what the user plays on their piano or keyboard and build a paid marketing strategy.

Read this case study

Read by 4,711 founders

Learn more about starting a music streaming app:

Where to start?

-> How much does it cost to start a music streaming app?
-> Pros and cons of a music streaming app

Need inspiration?

-> Other music streaming app success stories
-> Marketing ideas for a music streaming app
-> Music streaming app names

Other resources

-> Music streaming app tips

How much can you make with a music streaming app?

With a music streaming app, you can make an average of $1.21M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $1,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a music streaming app make a week?

Based on our data, average weekly revenue for a music streaming app ranges around $25.3K. As such, you could see monthly revenues of $101K.

To know if your music streaming app achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your music streaming app.

How much do music streaming apps owners make?

The income of a music streaming app owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established music streaming app is about $25.3K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a music streaming app owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Music Streaming App Profit Margins

Generally speaking, a music streaming app can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a music streaming app, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, music streaming app owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, music streaming app owners can ensure long-term sustainability and profitability for their business.

Music streaming app owner salary

The salary of a music streaming app owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established music streaming app, in a prime position, might see an average weekly salary around the ballpark of $21K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a music streaming app may be a promising business to start - but the success of your music streaming app mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable music streaming app.

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Starting A Music Streaming App: Everything You Need To Know

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