Split a lot of different ways. It costs money to make a CD and a jewel box and a cover pamphlet, wrap it in plastic, ship it in trucks to stores, stock them in stores, and sell them to people. Every step along the way costs money. More than $10 of that $15 went to making, shipping, and selling the CD. That entire chain has been eliminated. All that's left is the music. And instead of paying once and owning that music forever, you pay every time you listen. That's how songs reach billions of plays. No album at $15 ever sold a billion. But today it's pretty common, and it happens fairly quickly.
OK, but out of all the songs out there, how many reach a billion plays? According to the latest data I could find (2019) only six artists had tracks out there that have streamed more than a billion times. Most of the artists don't see that sort of success. The number of tracks that had a billion plays amounted to 25 total. Of course, that was three years ago. Let's supposed it's doubled in the three years since then. That would be 50 tracks out of probably 10 million on streaming sites, and 12 artists out of several million.
You stated previously here on RD that when survey companies survey what is played on people's playlists, mostly it's the same popular currents, recurrents and gold that gets played on radio. Once the new release isn't so new, it dives in popularity on the streaming sites, with some few exceptions, like Queen or other superstars. And once the new release fades in popularity, the revenues drop.
And if the streaming model brings in so much more money, why are artists screaming for higher royalties?
Obviously, we have different views of the benefits vs. liabilities of the new streaming model. You undoubtedly have connections to the industry that I don't have, so you may indeed be correct in all of this. I think in 5 years we will all know how it shakes out, not just for radio, but for the streaming sites, and your average working mid-level artist just trying to make a buck.
Royalties might indeed go up. Streaming sites may fail because of it. Those consumers who can't afford the streaming subscriptions may do without. They may trade MP3s again. People right now are doing without a lot because of the economy. People cut the cable. People have cut back on video streaming sites like Netflix. In five years, we'll see how it affects the industry.
Radio will probably survive. As we all know, outside of satellite, it has no subscription fee. And it has a long history of providing what the masses want to hear.