> ## Content Index
> Fetch the complete content index at: https://www.hypebot.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Chart: How Amazon Can Afford To Lose Money Selling Music plus Why Facebook & Google Won’t
- URL: https://www.hypebot.com/chart-how-amazon-can-afford-to-loose-money-selling-music-plus-why-facebook-google-wont/
- Published: 2011-01-06T08:28:00.000Z
- Updated: 2011-01-06T08:28:00.000Z
- Description: (UPDATE 2) Amazon offers some great deals on music downloads, often selling hit albums for $3.99 – $5.00. Sometimes the labels participate with lower wholesale pricing, but often Amazon sells. Continue reading [https://www.hypebot.com/hypebot/2011/01/chart-how-amazon-can-afford-to-loose-money-selli
- Author: Bruce Houghton
- Tags: Vinyl, Cassettes & Retail, #wp, #wp-post, #Import 2026-01-21 10:59

[![image from blog.hubspot.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e20148c7544a2b970c-150wi "image from blog.hubspot.com")](https://storage.ghost.io/c/3a/95/3a957c06-c825-4057-9939-0a274cc16d23/content/images/blog-hubspot-com/Portals/249/images/amazon%5Flogo.gif?ref=hypebot.com)

(UPDATE 2) **Amazon** offers some great deals on music downloads, often selling hit albums for $3.99 – $5.00\. Sometimes the labels participate with lower wholesale pricing, but often Amazon sells downloads at a loss. Loss leaders are common, but how can Amazon afford to lose money so consistently, and why are **Facebook** or **Google** with its pending music service unlikely to follow Amazon's lead? [Glenn Peoples](http://www.billboard.biz/bbbiz/industry/digital-and-mobile/analysis-here-s-how-amazon-can-sell-music-1004137815.story?ref=hypebot.com) points to a [Business Insider](http://www.businessinsider.com/category/chart-of-the-day?ref=hypebot.com) chart based on public filings and estimates that provides the answer.

Amazon is generating $189 per unique user while Google search generates just $24 per user. Facebook is only generating $4 per user though that is expected to grow.

[![image from static.businessinsider.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e20147e14ab9bb970b-500wi "image from static.businessinsider.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e20147e14ab9bb970b-popup?ref=hypebot.com)