The issue you raise about this big pool method is certainly true.

If you want concrete numbers, I have them:

In terms of what the labels pay the artists it’s going to be different for every artist, and it’s going to be based on a lot of things, including any advances the label gave the artist. I was a major label artist at one time, so… it’s too long to put in this answer, but let’s say I’ve covered the parts that need to be covered. :-)