As a way to boost their new cloud service, Amazon.com offered users Lady Gaga’s new album, “Born This Way,” for 99 cents (yes, the entire album) for one day only on May 23. As a result, servers stalled, users were not able to download all the tracks, and angry fans took to Twitter and Facebook to express their chagrin. What does it all mean?
Well, music is not Amazon’s core business. It will use music as a loss leader to get users to buy other, more expensive stuff. The commerce site certainly got a ton of users based on the Lady Gaga promotion.
But does it spell doom and gloom for their Cloud Service?
I don’t think so. Users literally expect new technology not to work. Plus, the album was only 99 cents. It they were offering the album at full price and the system crashed, that would be an entirely different issue. Customers are much for forgiving when they are only spending a buck.
What does it mean for Lady Gaga?
Well, based on the Amazon promotion she will get a ton more scans to hit the charts at No. 1 with a massive number this week. Also, in today’s new media world, there is no such thing as bad press. All the mention of her album crashing the Amazon system will just add to her fame game.
I mean, come on, she even has her own Farmville social game called Gagaville, complete with unicorns and crystals and a free listen to the new album. “Born This Way” is the most over-exposed, over-hyped, over-marketed album in recent history.
What does this mean for other Cloud Services from Apple and Google?
Well, first they have to launch and get the label rights cleared up. Cloud and ‘locker’ systems have been around since the MyPlay music locker over a decade ago. The providers and rights holder will make their money on “breakage” – which basically means people will sign up and never use it. Think of all the gift cards you have received and lost or never used? Think of all the Groupons you’ve bought and forgotten about? This is how people make money. Breakage.
As for Amazon. This too shall pass. Both users and the media have very short attention spans. I’m sure a bigger drama will arise tomorrow.