Comment by TheOtherHobbes

You're not comparing like for like.

The $1m is gross income, pre-royalty slicing. The actual payout to artists on a label will be much lower.

The $3/album is post-royalty at the other end of the telescope, and the actual number varied by territory. The gross income to labels would be much higher.

So the final premise is incorrect. The real winners - the household name bands, artists, and soundtracks - made incredible numbers from their royalty slices which are impossible on Spotify today, especially once labels take their cut.

Drake may be getting lifetime sales of $400m, but a chunk of that goes to UMG for distribution.

Meanwhile there were vital scene subcultures around indie/rave/dance/hiphop where niche artists turned DIY music production, pressing, and distribution into a workable fairly well-paid full-time career. Those numbers mostly weren't logged.

Spotify dilutes the scene effect because everyone is competing with everyone else, globally, so it's harder to get exposure, even in a specific niche.