Can Amazon's Lady Gaga Discount Boost Competition With Apple?
Not in the long run, analysts say
In an effort to compete with Apple’s dominance in digital music sales, Amazon is luring in customers with a huge discount on Lady Gaga’s new album, Born This Way, released Monday. Amazon sold the album for just 99 cents on the day of its release—resulting in major downloading problems on the site—and will continue to offer it at an everyday price of $6.99, which is still considerably lower than its wholesale value of $9.
Despite Amazon’s lower prices, Apple’s iTunes Store had no problem selling $11.99
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