WTF? Over a million dollars for 1 song? See it's completely misleading and it's like you said, it's not necessarily the price to DO the music or the video or whatever, it's paying the person to do it. $20,000 for a beat is a lot, but you're paying for the name of the producer of course.
That sounds right. Albeit it's the old industry way of doing things, which is why the record companies are bleeding money. It's also one of the problems with music today.
Remember what I told you about writing pools? They call it a "camp" here.