It's probably not a jackpot in terms of this project, but imagine how much this kid will learn in the process. It's a jackpot for his growth as an entrepreneur, if he sticks with it.
The same can be said for deals with record labels. I don't know if it's a good or a bad thing, it may be a good thing since it motivates more aspiring talent.
Well, I can live very comfortably for 10 years with that kind of money, and no work at all -- and I live in one of the most expensive European countries (save for rent, which is cheap).