The High Price of Amazon's Gaga Deal

Amazon sold 440,000 downloads of Lady Gaga's "Born This Way" album, paying Gaga’s distributor, Universal, the full price of approximately $9 per album, and re-selling them at just 99 cents a piece -- meaning that Amazon lost more than $3 million in the process. It's possible Amazon will write this off as a marketing cost and move on, but whether the move will actually prove successful at driving more music sales to the site in the future is far from clear.