Ah. Music income numbers, where the details are not actually details. He did say that[1], but the statement is misleading (and has little to do with Spotify).
A very rough global average per-stream payout is often estimated at around $0.003 to $0.005. That brings the payout for 1 billion streams between $3,000,000 and $5,000,000. Let's go with the lower end. This is actual money paid out by Spotify for 1 billion streams, as in, a bank transfer of $3,000,000.
How do you get from there to $45,000?
- As with any legacy artist, the record label gets most (maybe 70%). Why that is, oh well. It's less shocking if you think of the label as an employer and how little an average employee gets compared to what they produce. Do you need an employer? Absolutely not. Do you need a record label? Absolutely not. Anyway, a 70% cut would leave the artist with $900,000.
- Expenses: There are various costs associated with producing, distributing, and promoting music, hotel costs. Let your imagination run wild. Safe to say: This is a black hole, depending on how you want the process to look. If Snoop wants to sit in a big studio for months, he pays prices, for month, but that's not required to make music. Renting a high end studio on end is lifestyle. Sure, it's an expense, but it's like complaining about your profit while driving a Porsche. Awkward. Let's assume a 20% deduction here, reducing the revenue to $720,000.
- Focus on Publishing Royalties: Publishing royalties are just one part of the total royalties an artist earns. So there's quite a bit of double accounting going on if you want to pretend that the above costs are all deducted from your Spotify income.
If we assume publishing royalties make up only 10% of the total, that brings the figure down to $72,000.
- tldr: Snoop is living the big life, confused about money, and then proceeds to confuse others about money.
[1] https://economictimes.indiatimes.com/news/international/us/s...