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The problem is that music isn't generally FOSS - people would like to be paid for their work. So the next best thing is to set up your own music service where you can add your own music.
Here's a good discussion: https://www.reddit.com/r/selfhosted/comments/rdxbxp/is_there_any_spotifylike_selfhosted_music/
Here is a libreddit link: https://libreddit.de/r/selfhosted/comments/rdxbxp/is_there_any_spotifylike_selfhosted_music/
Please don't use direct links to reddit.
FOSS doesn't mean that you can't be paid for it... Maybe you meant that copyright needs a lot of money and so does building a streaming service
That's true. However, FOSS usually means that it's free (F) and open-source (OS). Music isn't usually open source - they don't usually share the sheet music or allow free editing/covering/forking of the music. So the worlds don't completely mesh. You can look at a FOSS solution for managing music, but you won't find a ton of FOSS music.
There is the fediverse music platform alternative called funkwhale, although it is closer to soundcloud than spotify. https://funkwhale.audio/
There's an app called BlackHole, but the music library it provides is very small and oriented in music from India.
I don't have much experience with FOSS alternatives for Spotify because I rarely use the service, but maybe you could find what you're looking for in this list from alternativeto.net ?!