Following the Money

The music industry has three main revenue streams: recording (selling and streaming music), publishing (songwriting royalties), and live performance (concerts and touring). Most artists earn the bulk of their income from live shows, not recordings.

A typical major-label deal gives the artist 15-20% of recording revenue, but the label recoups its investment first — the artist earns nothing until every cost is repaid. Recording, marketing, and tour support can easily top a million dollars, so plenty of artists sell millions of streams and still owe money.