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Lady Gaga's 99-Cent Album Cost Amazon $3 Million?
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Jun. 2 2011, Published 12:07 p.m. ET
Lady Gaga sold 1.1 million units of her new album, Born This Way, in its first week and about 60 percent of that was from digital downloads. Over a two-day period, Amazon sold Gaga's album for 99 cents. So how much did that cost them?
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In order to introduce people to their new Cloud Drive service, Amazon sold Born This Way's digital release for 99 cents over two days.
According to the New York Times, the album was reportedly downloaded 440,000 times and about two thirds of its overall digital sales were from Amazon's offer.
So how much did Amazon end up losing?
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NYT reports Amazon paid full full price ($8 or $9) per album to Lady Gaga's distributor.
So, they reportedly lost over $3 million.
Amazon didn't have a comment. Did their promotion of Gaga's album help sell you on Cloud Drive?