Last week, Amazon.com sold Lady Gaga‘s ‘Born This Way’ as a 99-cent download twice and the singer told The Wall Street Journal in a video interview that she felt it was a fair price, relatively speaking.
While the online retailer passed the deep discount onto the customer, the company still paid cost for the music and absorbed the difference, resulting in a loss. Amazon was able to take the hit — rumored to empty their bank account by $3 million — since they tied it into a promotion for their new, cloud-based service.
When asked Gaga if ‘Born This Way’ should have been sold for a higher price, she quickly replied, “No. I absolutely do not, especially for MP3s and digital music. It’s invisible. it’s in space. If anything, I applaud a company like Amazon for equating the value of digital versus the physical copy, and giving the opportunity to everyone to buy music.”
Gaga also pointed out that the CD may have been sold for less than a buck, but Amazon still paid her label full price in a loss-leader strategy to turn consumers onto their cloud service. “It also wasn’t really 99 cents, because Amazon paid the difference on all of those purchases as part of their promotional campaign for one of their new services,” Gaga revealed. “I think it’s amazing and it was a really nice surprise and I felt honored that they chose my record to be part of it.”
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