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Madonna's Rebel Heart discounted on Amazon for $6.99


ViviLittleM

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Oh my god :air: my threads about Madonna always become a mess :awkney:

​I honestly can't work out whether you like or dislike Madonna :air: You post a lot of threads related to her but they always seem to attract the Madonna hating crew 

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AM98GJ

The train wrecks that occur on Madonna threads are so fun to watch, I'm telling you I legit have a cup of tea right now, just watching 0.0 

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ViviLittleM

​I honestly can't work out whether you like or dislike Madonna :air: You post a lot of threads related to her but they always seem to attract the Madonna hating crew 

​I like her last album, that why I post about her.

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asana15

http://www.forbes.com/sites/zackomalleygreenburg/2011/05/26/why-amazon-will-gain-from-loss-on-lady-gagas-born-this-way/

Why Amazon Will Gain From Loss On Lady Gaga's Born This Way

5/26/2011 @ 5:03PM 

The more copies Lady Gaga’s Born This Way sells, the more money Amazon loses. At face value, that sounds like a terrible situation for an online retail giant hawking the most anticipated record of the year. On closer inspection, though, Amazon’s decision to sell the album for $0.99 per copy–at a significant loss–amounts to more of a shrewd advertising outlay than a pricey publicity stunt.

Lady Gaga’s manager has denied any involvement with the promotion, leading some outlets to speculate that Amazon paid a wholesale price of $8.39 for Born This Way (based on the fact that Apple’s iTunes is selling the album for $11.99 per album and keeps 30% of sticker price). But a source informs me that Amazon negotiated with Interscope/Universal to pay a wholesale price of $7. That means the retailer is taking a somewhat smaller hit of about $6 per album sold. Numbers haven’t been released, but the deal’s first-day traffic “definitely melted some servers,” according to an Amazon spokesperson.

So how many copies will actually be sold? Though the promotion was initially billed as a one-day event, Amazon brought back its $0.99 offer today. The company has never moved more than 100,000 copies of an album in a week, but with prognosticators projecting total sales of 800,000 copies in Born This Way‘s first week, Amazon will likely shatter that mark with ease. Some insiders believe Amazon will sell 200,000 copies of Gaga’s album, meaning the retailer would be taking a loss of about $1.2 million.

Even so, it’s a big win for Amazon, as the promotion amounts to a massive advertisement. Stars of Gaga’s magnitude generally charge exorbitant rates to dish out product endorsements, if they’re willing to do so at all. Toby Keith, for example, getsabout $5 million annually for his relationship with Ford. Gaga herselfreportedly received $1 million from a Russian billionaire who wanted to make a cameo in the video for her song “Alejandro.”

“Amazon would have had to pay millions to get a [traditional] endorsement from Lady Gaga,” says John Branca, an entertainment attorney who’s represented Michael Jackson, Aerosmith, The Rolling Stones and others. “The promotion is great for Amazon because they get new customers and they advertise their new service. It’s great for Lady Gaga as well because she moves some copies and her fans get the record for a buck.”

Indeed, paying $1.2 million for a Gaga-related promotion during the week of her album launch seems like a bargain, especially considering that Amazon recently rolled out its much-anticipated Cloud Drive music service. Even if the $0.99 deal doesn’t translate directly into a seven-figure sales boost for Amazon, the word-of-mouth alone would appear to be worth the cost.

“It definitely grabs mind space,” says entertainment attorney Donald David, whose client list includes Tupac Shakur. “I’m 63 yrs old. I’m not your ideal candidate for cloud computing for storing music. But even I, from all the news coverage, know about this. And the people who buy the album are the ideal demographic.”

As for Gaga, the Amazon boost will likely pale in comparison to what she makes on the road–she’s been grossing $1.3 million per concert. And in any case, it’s just a drop in her ever-growing earnings bucket: Gaga topped FORBES’ annual Celeb 100 list with earnings of $90 million over the past 12 months.

UPDATE: Billboard is reporting that Amazon sold 430,000 copies of the $0.99 version of Lady Gaga’sBorn This Way during its two promotion days (a deluxe version with three more songs sold an estimated 10,000 additional copies). That would bring Amazon’s loss to about $2.6 million over two days, by my math. It’d also mean Amazon sold four times as many units of the album as Apple’s iTunes–another reason why the promotion was worthwhile.

http://www.forbes.com/sites/zackomalleygreenburg/2011/05/26/why-amazon-will-gain-from-loss-on-lady-gagas-born-this-way/

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barcodemonster

Gaga did it to cross 1M

Gaga did the 2000 signed copies to debut at #1 (C2C)

 

scan my barcode
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