Labels are starting to collect money outside of record sales. It's becoming much more common for artists to be signed to "360-degree deals", which is what the record companies came up with when album sales started to drop off. They take a cut of everything the artist does - merch, shows, etc.
Keep in mind they also finance the tour, publicity, radio tours, promo, websites, fan clubs, etc.
A lot of artists that don't need all-rights deals can afford to run all that themselves and so they sign 270 or 180 deals, a la White Stripes, Metallica, etc.
Outside of recorded music, most of the other revenue streams are 50/50 splits and non-recoupable.
