Amazon could lose $3 million thanks to Lady Gaga

Makes you wonder.
Amazon in the US had a one day promotion on May 23rd, selling Lady Gaga’s Born This Way album [we’ll assume the regular edition] for 99 cents plus taxes. You read it right.
According to reports, there were 440,000 purchases of the album that day. I guess it was the number one album for the week on the various music charts.
Because of this sale, Amazon may actually lose over $3 million [estimated] as her record label, Universal, normally charges between $8 and $9 for the digital album. Maybe Universal gave them a volume discount?
Some say this could actually be good for Amazon. 440,000 purchases. How many were new to Amazon [or the digital downloads]? Unsure. How many of those new purchasers will return again? I’m sure not all.
Since most songs are between 99 cents and $1.49, it will be a while before Amazon can recoup what it “lost” [and even then, a good chunk of that 99 cents goes to the label].
PS – Personally I prefer a [physical] CD and not a digital album. At least with a CD you sense that you actually bought something and you got it.

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About ebraiter
computer guy

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