May 26, 2011, 10:48 AM

Server problems fixed, Amazon again goes Gaga

For the second time, the retailer sells copies of Lady Gaga’s new album for 99 cents.

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This time, Amazon says, it is ready. The retailer, No. 1 in the Internet Retailer Top 500 Guide, this morning said it is again selling for 99 cents digital copies of “Born this Way,” the new album from pop singer Lady Gaga. The price was $11 cheaper than the price at Apple Inc.’s iTunes store, the leader in digital music sales and Amazon’s target as it moves deeper into this space.

A similar sale on Monday caused headaches for the retailer and Lady Gaga fans as fierce demand for the discounted album overwhelmed Amazon’s servers, leading customers to complain that they could not download or listen to the newly purchased music.  Amazon had used the sale to promote its Cloud Drive service, which enables customers  to store their own MP3 digital music files on Amazon servers.

Amazon has not given details about the server problem or the steps taken to fix it in time for today’s sale. "We saw extraordinary response to Monday's promotion, far above what we expected. She definitely melted some servers," says Craig Pape, Amazon’s director of music. "So we're doing it again, and this time we're ready.”

Customers who buy the discounted MP3 album, or any album from Amazon, will receive 20 gigabytes of free Amazon Cloud Drive storage. Amazon already lets consumers store up to five gigabytes of data for free.

Despite the problems associated with the Lady Gaga sale, her new release has been the bestselling digital album on Amazon all week.  

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