Boston, MA 08/12/2014 (wallstreetpr) – Amazon.com, Inc. (NASDAQ:AMZN) has rekindled its dispute with media outlets; this time with The Walt Disney Company (NYSE:DIS) after solving a similar dispute with Warner Bros a few months back. Amazon has swung into action and is blocking offering of pre-orders for Disney’s upcoming Films on Blu-ray or DVD as the company tries to push for better pricing terms. Amazon has in the recent past been pushing for better pricing terms that will have an impact on its profit margins. Disney has not yet provided comment on the ongoing standoff.
Amazon Demonstrating its Market Position
Amazon.com, Inc. (NASDAQ:AMZN) move is set to affect all yet to be released’ DVDs and Blue-rays films from Disney, including the likes of Captain America: The Winter Soldier, as well as Muppets, Most Wanted. Digital versions of the movies have not been affected by the latest stunt from Amazon. It is likely that the digital distribution of the films might be covered’ on separate terms other than physical copies.
The latest move underscores Amazon market position as it continues to push studios like Disney to agree to its terms, if it is to carry their products for better sales. Disney essentially finds itself in a difficult situation similar to one that Hachette is entangled’ in, with the giant online company.
Amazon Move Could Affect Sales
The move comes as Amazon.com, Inc. (NASDAQ:AMZN) tries to improve on its profitability after being wounded by second quarter earnings last month, as well as increased pressure from investors. Amazon posted a wider than expected loss of 126 million despite its revenue increasing by 23%. Disney has been enjoying a good run in the film industry with its Marvel studios performing exceedingly well.
Disney’s Guardians of the Galaxy has been one of the top performers generating a total of $94 million in earnings after release. The latest standoff with Amazon.com, Inc. (NASDAQ:AMZN) could essentially thwart hopes of it, performing even better with other upcoming films.
