1. Digital music stores and streaming platforms: When you purchase a song or album from a digital music store (e.g., iTunes, Amazon Music) or subscribe to a streaming service (e.g., Spotify, Apple Music), a portion of the revenue goes to the artist. The exact amount varies depending on the platform, the artist's contract, and other factors.
2. Direct-to-Fan Sales: Many artists sell their music directly to fans through their websites, social media platforms, or at concerts. In this model, the artist retains a larger share of the revenue from each sale.
3. Licensing and Synchronization: When music is used in films, TV shows, commercials, video games, and other media, the artist may receive licensing fees or synchronization fees. These fees are negotiated separately and can be a significant source of income for artists.
4. Publishing Royalties: Songwriters and composers receive publishing royalties when their music is played on the radio, used in live performances, or covered by other artists. These royalties are typically collected by performance rights organizations (PROs) such as ASCAP, BMI, and SESAC.
It's important to note that the music industry has undergone substantial changes in recent years, with streaming becoming the dominant form of music consumption. While streaming revenues have grown, individual payouts to artists per stream can be relatively low. This has led to debates and discussions about fair compensation for artists in the digital age.