[neuralk]

This feels like a business opportunity. Or, at least, an open source repo + a tutorial article that would attract donations.

[gloflo]

How much money do you realistically see this generating? With how much effort for marketing and polishing? I would be impressed if OP could calculate even 1 dollar per hour and come out with a profit.

This is a niche of a niche of a niche.

[ViViDboarder]

There are already several projects that do this. Sub/Mad/Airsonic all allow hosting your own music and transcoding with ffmpeg.

[JohnFen]

There are numerous sites giving tutorials about how to set up such systems using OSS.