Good Problem! Amazon’s Servers Crushed by Gaga Promotion

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Amazon recently took its cut-rate, subsidized marketing strategy to an utter extreme – and got crushed under the weight of it all.

The entire Lady Gaga album, Born This Way, was available as a digital download for just 99-cents on Monday, a price that easily undercut iTunes (and anyone else in the paid world.)

This was tweeted Monday morning to roughly 1.5 million @amazonmp3 ‘Daily Deal’ followers, and Amazon servers quickly got swarmed.  That’s no surprise: this had all the trappings of ‘act now’ urgency, and that created a so-called ‘good problem’ of overwhelming demand – and slow delivery.  “We’re currently experiencing very high volume,” @amazonmp3 tweeted later in the morning. “If you order today, you will get the full @ladygaga album for $.99.”

The reaction from fans has been mixed, with some issuing one-star ratings on the experience.  Others were more understanding, especially given the extreme discount.

So, file this one under ‘go big or go home,’ but make no mistake, this comes with a serious price tag.  Indeed, this is part of the culture created by Jeff Bezos, though the real question is whether fans are sticking with iTunes for reasons other than price.  Let’s see.