Thursday, March 8, 2012

Is Google and Amazon in a price war?

Last night, I decided to check Amazon for their monthly $5 album deals. Amazon is very notorious for offering books and music at lower-than-normal prices for the sake of gaining sales. While I saw an album or two I might get, something caught my eye - an album for $0.25. That's right 25 cents. Considering the album, "Tha Carter IV", is by Lil Wayne a popular artist, I decided to search the reason Amazon would sell an album so cheap. I think the cheapest they sold an album was for $3.99 and that was a week promotion for a new release. Well, I found the reason.

This week Google changed Android Market into Google Play. To promote the brand name change, Google is offering an album a day for $0.25. They (as of last night when I wrote this) were also offering the same album for $0.25. It seems Google and Amazon are in a price war. Well, the deal has clearly worked for Amazon. According to Amazon stats (as of 2:32am), "Tha Carter IV" with digital booklet has jumped to #1 with a 122,890% increase. 

With such deep discounts throughout the week, I guess Amazon and Google are willing to risk lots of profit for the sake of customers. Or this is their way of showing they have so much money they can actually offer products for less a dollar. With all this money to throw around, what else can we look forward to?

No comments:

Post a Comment