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Sunday, May 29, 2011

Amazon was willing to Loss Selling Real Song of Lady Gaga

Lady GaGa is second to none. That is what experienced pop singer who always look quirky. Born This Way to download songs through Amazon.com in two days reached 440 thousand copies. Predicted in a week selling the song through one million copies. But Amazon still losing money.


Born This Way song price is only U.S. $ 99 cents during the promotion. Although demand from Amazon Billboard analysis still losing money by selling the song is Born This Way.

From math Billboard, Amazon incurred losses of about U.S. $ 3.2 million over a two-day campaign, namely Mondays and Thursdays.

The reason for this, with sales worth 99 cents, the Amazon will lose about U.S. $ 7.40 per copy. The amount is multiplied by 430 thousand copies sold.
This loss because Amazon had to pay to Interscope / Universal Music Group as a label copyright holder of the song.

iTunes also suffered the same fate. Same song sold for U.S. $ 11.99. Retailers typically save 30% of the sales price. While 70% is given to the label. But is the price of 99 cents to make Amazon go bankrupt?

For Amazon this is the best way to promote the company's latest application, namely Cloud Cloud Drive and Player. Giants in the field of e-commerce is indeed a lot of new applications that are ready to be launched.

Amazon reportedly also will maximize the newest MP3 service. In other words, customers will still come to Amazon if you want to search for music collections. Google is also preparing other competitors Music Beta. Apple did not miss.