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Radio is still the number one way to stardom in music.
These days they make money a lot of different ways. Itunes/amazon/sale of MP3, publishing, Youtube views, fan clubs and selling stuff to fan club members, touring, merchandise like shirts, stickers, hats etc and ring tones.
If they get big enough then you can add in clothing, perfume/cologne, various endorsements, product sponsorship for tour and videos and media deals with companies like Live Nation.
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