Friday, January 02, 2009

Amazon’s Loss-Leading MP3s?

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Amazon's Loss-Leading MP3s

...noticed all those crazy-low-priced Amazon download deals, where you can get a (usually new) album for $5?  Reports are now saying Amazon is taking a huge hit on those discounts– news has trickled out that they're paying the artist/label the full ($9.99) share of the sale, even though the sale price is much lower. Now, why would they do that? 

To attempt to wrestle away market share from iTunes, that's why. Follow the money. 



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