My secret sauce is that I'm using B2 (Backblaze) + Cloudflare Workers to save on egress fees. I am thinking of switching to Cloudflare's storage thingy as well. But bandwidth is cheap, in exchange the download speeds are not so great (CF probably better).
I hadn't seen backblazes storage pricing, it's very cheap. Even at that, 100GB of storage is ~$.50/month. $2 is tight. I don't think it needs to be much more, but probably close to $3-$4 I would say.
(1) could you hash everyone's mp3 files so that if person a had the same songs as person b, you only need to store them once? (2) people obviously storing copyright stuff in there -- do you have legal issues?