Verilux Music — P&L Projection Model

Model Assumptions

Adjust any value — the model recalculates instantly.

Streaming & Catalog

Songs released per month

songs

Active streams (month 1, per song from ad spend)

streams

Algorithmic streams (month 1, per song)

streams

Monthly stream decay rate (months 2–3) Typical: 55–65% for active promoted releases. Lower = stronger algo retention.

% drop

Monthly catalog boost (new releases, on decayed base)

Long-tail royalty per song per month (month 4+) At $0.004/stream, $10 ≈ 2,500 passive streams/mo. Range: $3–$8 conservative, $8–$12 active label.

$/mo

Discovery Mode & Royalties

Discovery Mode starts at month

month

Discovery Mode algo boost (on decayed base)

Spotify royalty cut on Discovery Mode streams

Standard royalty rate (per stream)

$/stream

Marketing & Operating Costs

Ad spend per song (month of release)

$/song

Number of playlists being grown

playlists

Ad spend per playlist per month

$/playlist

Playlist streams per playlist per month (catalog boost)

streams

AI production tools (annual)

$/yr

AI mastering tools (annual)

$/yr

Canva Pro (annual)

$/yr

Other monthly costs

$/mo

Auto-calculates on input change

Key Metrics

Song Breakeven

—

Month one song’s own cumulative P&L turns positive (in isolation)

Song ×2 ROI

—

Month song cumul. P&L ≥ CAC — earned back investment, then earned it again

Label Breakeven

—

Month label cumulative P&L turns positive (all songs combined)

Label ×2 Run Rate

—

Month label’s monthly revenue ≥ 2× monthly spend (monthly cash flow run rate)

CAC per Song

—

Ad spend + playlist share + opEx share

LTV per Song 48 mo

—

Projected cumulative revenue per song over selected horizon

LTV : CAC Ratio

—

Target: > 3.0× for healthy unit economics

Total Revenue 48 mo

—

Net royalties (after Discovery Mode cut)

Total Investment 48 mo

—

Ad spend + operating costs

Net P&L 48 mo

—

Revenue minus total investment

P&L Acceleration

—

YoY growth rate of annual net P&L gain — how much faster the bottom line grew this year vs last

Single Song Lifecycle ROI

Isolates one song released in Month 1. Monthly revenue, cost share, and two cumulative P&L views: song in isolation (amber B/E) vs. its proportional share of label-wide P&L (green label B/E).

Label ROI Projection

Monthly revenue, cumulative revenue, and cumulative spend over time.

Monthly P&L Detail

Full breakdown of streams, revenue, costs, and cumulative P&L by month. Breakeven row highlighted in green.

Mo	Songs in Cat.	Active Streams	Algo Streams	Playlist Streams	Total Streams	Gross Royalties	Disc. Mode Cut	Net Revenue	Song Ad Spend	Playlist Ad Spend	OpEx	Total Costs	Monthly P&L	Cumulative P&L

Model Assumptions

Streaming & Catalog

Discovery Mode & Royalties

Marketing & Operating Costs

Key Metrics

Single Song Lifecycle ROI

Label ROI Projection

Monthly P&L Detail

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