I'm running two streams (64kbps and 128kbps) using a Shoutcast DNAS 2 and Transcoder on a basic 512MB droplet that also hosts multiple 256kbps audio on demand archives. I and most of my listeners are in South America and everything is working perfectly with no latency issues at all. So in my experience, yes, these droplets are great for streaming audio!

You should have no issues with audio or video streaming, the rest will depend on what applications you install to perform those functions and how geographically far away your listeners are from your virtual server.

The further they are the higher the latency will be which can cause some delay, but there's no way to get around that besides to keep your virtual servers as close as possible geographically to the majority of your users.

How many listeners are you able to handle with your droplet Nick?
Thanks!