Just to add to what noonespecial says: 1. Royalty rates increase every 3-4 years. This is one of the big reasons why companies like Netflix have a hard time re

Just to add to what noonespecial says: 1. Royalty rates increase every 3-4 years. This is one of the big reasons why companies like Netflix have a hard time retaining contracts with content owners. 2. There are many middlemen involved in the online music/movie business. By the time everyone gets a cut, there is not much left in pool. This also ensures that everyone gets a very tiny portion. The online media industry is a complicated mess, and I don't see any long-term solution to it coming up soon.