ST Alpha - "I wonder how much amazon has to pay for each album it sells. I understand stores selling albums for cheap so they can lure people in but I don't think" (Reading a Post)

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In response to "Amazon mp3's "Black Friday" deals are up. They're doing 5 albums a day instead of one. Today: new Kanye (early), new My Chemical Romance (early), etc. -- (link)" by TFox

I wonder how much amazon has to pay for each album it sells. I understand stores selling albums for cheap so they can lure people in but I don't think

Posted by James Bond (aka Igor) (aka Igor) Nov 21 '10, 21:25

luring someone to a website will have the same effect.

Responses:

It sort of does. They've lured me there enough times that its the only place I'll buy an mp3 now, sale or not. - TFox Nov 21, 21:27 2
- plus buy through ST and Bery gets a taste. -- nm - Remlik Nov 21, 21:33
- Yeah, I guess the point is to have you buy stuff in the future. -- nm - James Bond (aka Igor) Nov 21, 21:31
i would think they take a percentage per unit sold, whether digital or CD -- nm - chrisco Nov 21, 21:27 12
- A percentage? You mean the retailer can set any price and then just give the label a percentage? That doesn't seem right. What would stop them from - James Bond (aka Igor) Nov 21, 21:33 11
  - no, the artist sets the price, amazon distributes for a cut off the top of each sale (subject to having the power to put it on sale for certain - chrisco Nov 21, 21:36 10
    - So you are saying the artist allows Amazon to sell it for $3.99? Won't the other chains complain? I think Amazon is taking a hit on the sales. - James Bond (aka Igor) Nov 21, 21:43 9
      - I know that artists are aware of it prior to the album being the "deal of the day." - JaxSean Nov 22, 05:56
      - well, for one, i am pretty sure that itunes was furious when amazon started pricing the way they did. -- nm - TFox Nov 21, 21:46 5
        
        Is iTunes not allowed to price that low or are they just being Apply and overcharging. -- nm - James Bond (aka Igor) Nov 21, 21:50 3
        
        I think both. I think that in being trailblazers with the legal mp3 sale thing, they signed deals that in today's view are very pro-label. - TFox Nov 21, 21:56 1
        
        Interesting. -- nm - James Bond (aka Igor) Nov 21, 21:58
        
        Apple and the record labels have pricing agreements in place. Amazon, to my knowledge, does not -- nm - chrisco Nov 21, 21:55
        
        they were all like "bitch! what?!" -- nm - chrisco Nov 21, 21:47
      - if you're an artist and Amazon is the biggest online music retailer besides iTunes, why wouldn't you? the volume of units you can move on amazon - chrisco Nov 21, 21:45 1
        
        Ok, I see your point. -- nm - James Bond (aka Igor) Nov 21, 21:49

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I wonder how much amazon has to pay for each album it sells. I understand stores selling albums for cheap so they can lure people in but I don't think

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