Support for playing music from external streaming platforms such as Pandora, Napster, Last.fm and Sirius were also added.

Both the server software and large parts of the firmware on the most recent players are released under open source licenses.

[citation needed] In January 2024 Logitech announced that they will close down their online server at mysqueezebox.com in February 2024.

Logitech Media Server can transcode other audio formats to MP3 on the fly, using the LAME MP3 encoder.

Main feature additions included optional 802.11b Wi-Fi, support for uncompressed PCM/WAV/AIFF audio streams, and headphone, coaxial and optical S/PDIF outputs.

Features included optional 802.11g Wi-Fi, native support for more audio formats (FLAC, WMA, Ogg), upgraded 320×32 pixel greyscale bitmap VFD display, visualizers, bitmapped fonts.

Of these, MP3, Windows Media, FLAC, WAV, AIFF and Ogg Vorbis are natively supported by the player firmware; the remainder are automatically transcoded by the Logitech Media Server host software into one of the player-supported formats.

Additional features over Squeezebox v3 include dual 320×32 pixel displays, front panel buttons and tactile feedback knob, redesigned backlit remote control, balanced (XLR) and unbalanced audio outputs, balanced and unbalanced digital inputs and outputs (AES/EBU and S/PDIF) (inputs for operation as a standalone DAC), RS-232 serial connection for external control, Infrared input and output.

This new design consists of a more sophisticated remote, called the Squeezebox Controller (aka SBC) with a display (like the Sonos), and a separate simplified network music player box, called the Squeezebox Receiver (aka SBR) connecting to the stereo.

In a departure from previous models, the Boom combines Squeezebox functionality with a DSP, a 30 W[6] integrated amplifier and bi-amped stereo two-way speakers to produce a self-contained device which requires only a network connection (either wired or wireless) and power.

Without a network connection, the Boom can still amplify and play a line level signal from an external player through a 3.5mm mini-jack plug.

The Squeezebox Radio can be powered by an optional proprietary battery pack, made available in March 2010.

The remaining option for users of Squeezebox devices is to run the open source Lyrion Music Server.