"Billboard analysis shows that even the amount of money earned by top artists from on-demand streams and noninteractive streams (such as Internet radio) is, in plain terms, shockingly low.
When Billboard calculated the rankings for its annual Money Makers report, the music trade magazine assigned a value to each digital download or song streamed based on information about labels' licensing deals with those services and assumptions made about standard artist contracts.
The results show that of the more than 100 artists examined to compile the Money Makers list, only 10 made more than $2,000 from noninteractive streams in 2009, with Beyonce topping the list with an underwhelming $5,000. Only 25 artists made more than $1,000 from on-demand streams, with Michael Jackson topping that list -- as the result of a barrage of interest after his death -- with $10,000. Neither totals include any due publishing royalties and all are for U.S. activity only.
Compare that with the money that artists make from other digital channels. Digital album download sales generated sales of at least $200,000 for 13 artists, led by Jackson with $800,000, while another 26 sold $100,000 or more. Three acts pulled in more than $1 million in digital track sales for the year, led by Lady Gaga, with 33 making more than $100,000 from digital single sales.
Even tethered subscription downloads -- tracks downloaded from services like Rhapsody that must have their licenses renewed monthly -- showed better numbers. Nickelback, Jackson and Taylor Swift each made about $500,000 from such services, leading a field of 26 acts that earned in excess of $100,000."
Source:
Billboard/Reuters, 26th February 2010