Record Deal Simulator - how do those deals work?

Startup Create/OS made a Record Deal Simulator, a fun little tool designed to show how record deals work. So, in a standard 20/80 royalty deal where 20% goes to the artist, and 80% to the label, with a $1 million budget - $400,000 advance, $200,000 in recording costs, and $400,000 for marketing -te artist would have to generate 1 billion streams before making the very first dollar in royalties. The label will have made $3 million in profits at that point.