Amazon picks a fight with Disney in latest spat
Amazon.com has reportedly removed the preorder option for nearly every title from Walt Disney’s home entertainment division, the latest battle between the online behemoth and one of its suppliers that has spilled out into the public arena.
Flicks including “Captain America: The Winter Soldier” and “Maleficent” are only available for preorder for Amazon’s instant video feature, not for sale of hardcopies of DVDs or blu ray. The dispute was originally reported by Homemediamagazine.com, which noted the tactic is a repeat of what Warner Home Video experienced earlier this summer.
Amazon earlier this summer refused to sell preorders of Warner’s films, part of an effort to gain leverage with the studio. And movie studios aren’t the only targets in Amazon’s crosshairs: the company has publicly fought with Hatchette publishing, with some media reports saying Amazon wants a bigger cut on sales from Hachette, which the publisher has resisted.
Representatives from Disney (DIS) and Amazon.com (AMZN) weren’t immediately available to comment on the alleged dispute.
What’s at stake for Amazon? Potentially greater profits, if it can successfully squeeze them from its suppliers. And those profits are badly needed: Amazon’s second-quarter loss swelled greatly despite a 23% jump in sales, results that spooked investors last month. Investors sent shares sharply lower in the wake of that report, as some appeared frustrated with Amazon’s big spending and lack of profits.