HomeAboutContact
L1What Does 'Making It' Mean? L2Industry Structure L3Revenue Streams L4Copyright & Sampling L5Career Exploration L6Sound Engineering Deep Dive L7Sound Engineering L8Music Marketing L9Music Entrepreneurship L10Bronx Music Scene L11Presentation Prep L12Career Presentations L13Assessment & Wrap-Up
Lesson 3: Revenue Streams 1 / 9
100%

Revenue Streams

Where Does the Money Come From?
Friday, January 30, 2026 • Unit 3, Lesson 3 • Mr. Mbagwu
DO NOW5 Minutes • Billion Dollar Math
05:00

Billion Dollar Math Challenge

Shaboozey’s “A Bar Song (Tipsy)” has over 1 BILLION streams on Spotify.
Spotify pays approximately $0.004 per stream.

How much did “A Bar Song” earn from streaming BEFORE any splits?
Show your work: 1,000,000,000 × $0.004 = ?
Think: Is that a lot? But wait… Does Shaboozey keep all of it?
Source: Spotify Loud and Clear 2025, TuneCore 2025

I Can Statements

How Streaming Money Flows

The Pipeline

Spotify ($10B paid 2024) → Rights Holders (70% of revenue) → Label (takes cut) → Artist (what’s left)

Key Numbers

$0.003 – $0.005 per stream

1 Million Streams = $3,000 – $5,000 (before label cut)

Minimum: 1,000 streams in 12 months to earn

Sources: Spotify Loud and Clear March 2025

The Split Matters

MAJOR LABEL DEAL

Sony, Universal, Warner

10–20%

1M streams × $0.004 = $4,000
Artist gets: $400 – $800

VS

INDIE LABEL DEAL

EMPIRE, Rimas, 300 Ent

50–85%

1M streams × $0.004 = $4,000
Artist gets: $2,000 – $3,400

Shaboozey (EMPIRE): 1B streams × $0.004 = $4M → Keeps ~70% = ~$2.8 MILLION
If major at 20%: only ~$800K — that’s a $2 MILLION difference!

Beyond Streaming: Multiple Revenue Streams

Streaming

Spotify, Apple, Tidal

~$0.004/stream

Live/Touring

Concerts, festivals

Often #1 income source

Publishing

Songwriting royalties

If YOU write, YOU earn

Sync Licensing

TV, film, ads, games

Can pay $10K–$500K+

Merch

Clothing, accessories

50–70% profit margin

Brand Deals

Sponsorships, collabs

Social media required

Key Insight: Smart artists don’t rely on just ONE income source. Shaboozey earns from streaming + touring + publishing + merch + J-Kwon royalty share!

Streaming Math Workshop (18 min)

Your Tasks

1. Calculate earnings at different stream levels
2. Apply major vs. indie label splits
3. Analyze the Shaboozey case study
4. Reflect: Why do artists tour?

Key Formula:
Streams × $0.004 = Total Earnings
Total × Artist % = Artist Earnings

EXIT TICKET
05:00

Question 1

How much does Spotify pay per stream? (before splits)

Question 2

What percentage does a major label artist typically keep?

Question 3

Name TWO other ways artists make money besides streaming.

📚 Submit on Google Classroom

Coming Up Next

Monday: Copyright & Sampling

How did Shaboozey legally use J-Kwon’s “Tipsy”?

📚 Submit on Google Classroom
HomeAboutContactPrivacyTermsAccessibility
navigate • F fullscreen • +- zoom