Tuesday, May 24, 2011

Welcome Lady Gaga to Amazon Wars


Amazon.com Inc. wants a piece of Apple Inc.'s commanding position in digital music. It's using Lady Gaga's new hit album, "Born This Way," for that.


How both companies approach "Born This Way" says a lot about how the two companies are positioning themselves for the fast-changing media business.Market-trailing Amazon is using aggressive discounts: A 99-cent one-day sale followed by a $6.99 everyday price, which is still below the album's wholesale cost of around $9.


Amazon typically offers a daily album deal for $3 to $5. Monday's 99-cent special generated extensive attention after the company's computer servers slowed down, apparently unable to keep up with demand for the low-priced album.

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