Amazon and Billboard Go Gaga
May 29, 2011
Short honk: Navigate to “How Many Millions Did Amazon Lose on Two Days of 99 Cent Lady Gaga Sales?” Anything missing from the analysis:
Here’s the math: For every unit it sells at 99 cents, Amazon will lose about $7.40, according to Billboard’s calculation. At $7.40 per unit and 430,000 units (10,000 shaved off total digital sales to account for some sales of the deluxe edition), the Gaga-related loss comes to $3.18 million.
I was thinking it might be interesting to include a factor for loss of credibility related to Amazon’s “elasticity”. Obviously Billboard did not think this minor issue relevant. Great ginger beer in New Zealand. Business analysis? Hmmm.
Stephen E Arnold, May 29, 2011
Sponsored by ArnoldIT.com, the resource for enterprise search information and current news about data fusion
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