The Seattle-based company has used similar tactics in the past, most recently during contract disputes with Warner Bros. studio and the French book publisher, Hatchette
Amazon is taking on Disney, and its superheroes, in the online retailer’s latest pricing dispute. Amazon has halted preorders for select Walt Disney Co. DVD and Blu-ray discs, including the blockbuster hit, “Captain America: The Winter Soldier,” “Muppets Most Wanted,” and “Million Dollar Arm.”
While the Seattle-based company declined to comment on the matter, it has used similar tactics in the past, most recently during contract disputes with Warner Bros. studio and the French book publisher, Hatchette.
“Just as paperbacks did not destroy book culture despite being ten times cheaper, neither will e-books,” Amazon said in a letter to readers regarding the Hatchette negotiations. “We will never give up our fight for reasonable e-book prices.”
In the dispute with Hatchett, Amazon claimed that for every copy of an ebook sold at $14.99, Amazon would sell 74 percent more ebooks if priced at $9.99, according to Bloomberg.
“The lower price is good for all parties involved: the customer is paying 33 percent less and the author is getting a royalty check 16 percent larger and being read by an audience that’s 74 precent larger. The pie is simply bigger.”
Home Media Magazine first noticed the disabling of the pre-order option for Disney DVDs last week. “Captain America” was the top-grossing movie in U.S. and Canadian theaters, according to researcher Box Office Mojo. Amazon’s willingness to withhold sales of a movie in such high demand suggests that the company is deadly serious about holding the line on price.
“They are squeezing studios on DVD pricing, understandable given their market position,” Michael Pachter, an analyst at Wedbush Securities, told Bloomberg. “Disney can’t cut them off, and Amazon can cut Disney off, so I would say Amazon has the leverage.”
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