Contact Us

Lady Gaga Promotion May Cost Amazon $3 Million

Lady Gaga
Dave J Hogan, Getty Images

Amazon is once again offering Lady Gaga‘s ‘Born This Way’ — which is projected to move between 800,000 and a cool million copies when the SoundScan tallies are in and counted — for the bargain bin price of 99 cents. The digital retailer did so on release date, which was Monday, causing massive service interruptions for their customers and crashed servers due the flood of activity on the site and people trying to download the album. This is Amazon’s move to remain competitive with iTunes.

Billboard has estimated that this loss-leading strategy — which means a seller can offer a CD at a dirt cheap price since customers will be purchasing bigger ticket items, offsetting the discount and profit loss — is costing the company $2.96 million. Amazon has to pay Interscope, Gaga’s label, over $8 for every album sold at .99 cents. You do the math there!

Is it risky? Yes. Is this strategy attracting media attention? Of course. Will it pay off? Time will tell if Amazon can recoup that lost with other profits in other sectors of its retail business. Some speculate that the economic boom from Father’s Day alone could erase the deficit on the quick.

What we’d like to know is how Gaga feels about a retailer offering her brand new album, which she painstakingly gave birth to, at such a low price. We wonder if she gives this game plan a thumbs up or down. Regardless, the Mother Monster should bow with one of the most successful first week sales of the year.

Watch Lady Gaga Perform ‘Judas’ on ‘Saturday Night Live’

Best of the Web

More From Around the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://popcrush.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on Popcrush quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here

Please solve this simple math problem to prove that you are a real person.

Register on Popcrush quickly by logging in with your Facebook account. It's just as secure, and no password to remember!