Forbes Columnist: Amazon's Tussle with Disney Could Backfire

Wednesday, 13 Aug 2014 08:56 PM

By John Morgan

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
In his battle with American icon Walt Disney Co., it’s starting to look like Amazon CEO Jeff Bezos is becoming increasingly combative in the pursuit of profit, a Forbes column argues.

Forbes said the fact Disney has stopped taking pre-orders on new Disney movies like “Maleficent” shows Amazon is “willing to pay hardball with suppliers.”

Amazon is already embroiled in a public struggle with book publisher Hachette over selling prices for Hachette e-books. Amazon wants the prices lower for customers, but Hachette claims the online retail behemoth is trying to corner the e-book market at the expense of authors.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

“Now parents looking to ensure that their kids are the first ones on the block with the latest Disney movie are getting thrown into the fray,” wrote Forbes columnist Dorothy Pomerantz. “But by taking on Disney, is Bezos going too far?”

Forbes predicted Bezos’ tougher stance with content providers like Disney could eventually
backfire, concluding that “if Amazon finds itself with a reputation as a company that at any
moment stops offering content from your favorite supplier, people will be less inclined to buy into the Amazon ecosystem.”

There is always the possibility consumers could shift to another retail source. “Apple has a book store, and it’s easy enough to buy things on Amazon directly from an iPad or iPhone,” Pomerantz said.

At the end of the day, Amazon does not really want to risk alienating Disney because of the giant trove of branded entertainment treasure the company owns, Pomerantz concluded.

“Disney’s content is must-have for any company that wants to compete in the content selling and streaming business. That gives Disney a lot of leverage in any disagreements.”

The Wall Street Journal reported its sources said Disney’s conflict with Amazon is not only about product pricing, but also encompasses promotion and product placement on the Amazon website, and who is responsible when Amazon loses money to match the prices of competitors.

One problem for Amazon, according to those sources, is that Wal-Mart, Best Buy and other brick-and-mortar retailers “sometimes charge less than the wholesale price for a new disc to
lure people into stores so that they will purchase other, more profitable items.

“Amazon often tries to match those prices, but doesn't reap the benefits of drawing customers into a physical showroom,” the Journal said.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify

Related Articles:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

World's Richest Up $7 Billion as Alibaba CEO Ma Surges on IPO

Friday, 19 Sep 2014 20:01 PM

The world's 400 richest people added $6.5 billion to their collective net worth this week as Alibaba Group Holding Ltd.  . . .

Hulbert: 'Overheated' IPO Market Makes it Hard to Judge Alibaba

Friday, 19 Sep 2014 19:40 PM

Chinese Internet giant Alibaba has experienced a phenomenally successful debut, with shares rising as much as 47 percent . . .

Alibaba Soars 40% in Debut: 'We Want to Be Bigger Than Wal-Mart'

Friday, 19 Sep 2014 16:18 PM

Alibaba debuted as a publicly traded company Friday and swiftly climbed nearly 40 percent in a mammoth IPO that offered  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved