Gaga Economics

“…Amazon.com, seeking to trail in the wake of her voluminous (and possibly decomposing) skirts, made Born This Way available for download at the we’ve gone crazee price of 99 cents. Surely, then, the stupendous star power of Lady Gaga would reanimate the moribund music biz. At less than a buck, who could resist? It didn’t turn out that way. Born This Way managed to shift only 1,108,000 units in its first week. This sounds a lot, but, a decade earlier, No Strings Attached by N Sync (remember them?) sold 2.42 million full-price units in its first week. Only 444,000 customers took up Amazon on its Red Light Special, and the next week total sales fell 85% to 169,387 units.

What went wrong?”

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