Dispute Erupts Between Amazon and Disney

By Greg BensingerDow Jones Newswires

Amazon vs. Disney

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Amazon vs. Disney

Wall Street Journal reporter Miriam Gottfried and Tuna Amobi of S&P Capital on Amazon’s dispute with Disney over DVD pricing with Disney.

When Amazon.com Inc. (NASDAQ:AMZN) wants to fight, it turns to a familiar playbook.

The latest to feel the Seattle retailer's sting is Walt Disney Co. (NYSE:DIS). Amazon isn't accepting pre-orders of forthcoming Disney DVD and Blu-ray titles including "Captain America: The Winter Soldier" and "Maleficent."

It is the same tactic Amazon has employed in a bitter four-month spat with Hachette Book Group over e-book pricing. To press its point, Amazon suspended pre-orders for physical copies of many Hachette titles and lengthened shipping times or pared discounts for others.

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The tactics underscore Amazon's unusual sway in e-commerce, where it is by far the dominant player, particularly for books and media.

"It's rare in physical retail to have contract disputes become so public. Most retailers just aren't willing to hurt themselves by cutting off sales," said Sucharita Mulpuru, a Forrester Research analyst. "Amazon has demonstrated that they're not going to be the one to blink in these negotiations."


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