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Amazon Lost How Much on 99-Cent Gaga Downloads?

More than $3 million, the 'New York Times' estimates

By Evann Gastaldo, Newser Staff

Posted Jun 3, 2011 11:27 AM CDT

(Newser) – Lady Gaga sold a whopping 1.1 million copies of Born This Way in its first week, but 440,000 of those copies went for just 99 cents on Amazon.com. Amazon, however, did pay Gaga's distributor the full price of $8 to $9 per album—which means, the New York Times calculates, the online retailer lost more than $3 million. Of course, New York magazine points out, a big point of the gimmick was to drum up new users for its Cloud Drive service, so the company can just consider those millions "marketing costs." As for Gaga, the move does provide "much fodder for anyone wishing to quibble with the validity of the 1.1 million number," writes Amos Barshad. Click to see which artist Barshad thinks is "probably pretty salted" right now.

In this file CD cover image released by Interscope Records, the latest release by Lady Gaga, “Born This Way,” is shown. (AP Photo/Interscope Records, File)

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Amazon Lost How Much on 99-Cent Gaga Downloads?

More than $3 million, the 'New York Times' estimates

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More Newser Stories

Gaga Sells New Album for 99 Cents

Amazon.com 'Born This Way' offer also includes Cloud storage

Madonna: Gaga Song Just a 'Redo' of Mine

It seems she agrees that 'Born This Way' copies 'Express Yourself'

Gaga Album Banned in Lebanon

Shipments of 'Born This Way' impounded: HuffPo

Gaga Eats Dave's Note Cards

Plus, eager fans bring down Amazon servers

Lady Gaga Apologizes... in Rhyme?

'R-word' gaffe was an 'honest mistake'

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