I think you should really take your time to evaluate the pros and cons by doing a SWOT analysis. Since the product is going to be used mainly by the general public, you should take time out to research and know what are the difficulties these people may face in trying to use this service, what will you do to erradicate that, what will they gain from this service and what would you gain.
I have read at least twice today on radar about creating a music streaming service and it is not a bad idea, presently we only have websites where users go and download songs, at some point in 2012/2013 notjustOk decided to add a music player to their site.
I think the big questions you should answer before going ahead are
- Do the people want to stream music online?
- Is there a stable and affordable internet service for the people to access and make use of your service?
If you can get past these, i think you should sail on. Also, dont have this mentality in mind that you need N1million naira to start this, even if you have N10million naira for it, i suggest you start small. I can see above that you have already started thinking into cloud services, “A grown man was once a baby”. Start small. Get a shared hosting, smartweb.com.ng would give you that for N6000, get a domain name from whogohost.com for N3000 i think. Those are the basic things i think you need most importantly, everything else you get is just to improve your tech, so start small and face the challenges of being small before expanding. This would help you in managing the challenges of being big.