The fairytale of Amazon

Amazon.com's business tactics and power over the retail and media economy are under the spotlight with the new dispute spilling into public view, this time with a media powerhouse: Disney.

The online retailer reportedly remove pre-orders of DVDs and Blu-ray discs of Walt Disney blockbuster movies, according to Home Media Magazine. By blocking pre-orders of films as a negotiating tactic , Amazon is flexing its muscle over how much it gets per sale as a distributor of Disney's films and merchandise, analysts say. It used a similar approach with Time Warner this year, blocking pre-orders for film such as The Lego Movie.
The dispute will not immediately hurt Disney, because DVDs are a small part of its overall revenue, analysts say. But box-office sales have been lacklustre and movie studios have placed greater attention on DVD and Blu-ray sales to extend the profits of its films. The pricing dispute comes at a time when media and distribution companies are converging, with Amazon Instant Video serving as both a partner and competitor with Disney and other Hollywood studios. One of entertainment and media analyst says that the companies are about as evenly matched as they get, but Amazon may have more leverage as the distributor because it can wait things out longer than Disney.
The move signals that the world's largest Web retailer is increasingly willing to keep certain items from consumers to put pressure on its vendors. Amazon has demonstrated great determination in pricing disputes. A row with the book publisher Hachette has only escalated over four months. Over the weekend, 900 authors - including big names as Stephen King and Suzanne Collins - signed a petition that ran in The New York Times claiming Amazon has singled them out for retaliation.
Amazon said the "unjustifiably high" prices Hachette wants to charge for e-books are not in consumers' interest.