Meanwhile, Amazon chalks all those millions up to marketing costs and moves on. “I can understand what Amazon did, but I think it devalues music even further. That final tally was greatly boosted by the fact that Amazon, looking to drive people toward their new Cloud Drive music locker service, dropped the price on Born This Way’s digital release to an all-new loss-leader low of 99 cents. Amazon paid Interscope’s distributor, Universal, the full wholesale price for the album — between $8 and $9 — and accepted the difference as a loss, according to several people briefed on the sales arrangement, who were not authorized to speak publicly about the details.
– Lady Gaga sold a whopping 1.1 million copies of Born This Way in its first week, but 440,000 of those copies went for just 99 cents on Amazon.com. Amazon, however, did pay Gaga's distributor the full price of $8 to $9 per album—which means, the New York Times calculates, the online retailer lost more than $3 million. Of course, New York magazine points out, a big point of the gimmick was to drum up new users for its Cloud Drive service, so the company can just consider those millions "marketing costs." As for Gaga, the move does provide "much fodder for anyone wishing to quibble with the validity of the 1.1 million number," writes Amos Barshad. Click to see which artist Barshad thinks is "probably pretty salted" right now.