Amazon.com, Inc. (AMZN)’s Dispute with Disney Can Be an Opportunity for Other Retailers

Amazon.com, Inc. (NASDAQ:AMZN) is in the headlines continuously now due to a lot of disputes and the eCommerce giant is now at war with productions houses such as Warner Bros, Disney and others. The DVDs of the movies produced by these banners won’t be available for pre-order on Amazon’s website until the dispute is resolved. Consumers are the ones who suffer due to such disputes.

Jon Steinberg, the CEO of Daily Mail North America, was on CNBC earlier today and he discussed about the battle and how it impacts a consumer. Jon Fortt of “Squawk Alley” team said that Amazon.com, Inc. (NASDAQ:AMZN) is trying to force the price down from the current premium prices and he also compared the strategy with that of Jobs’ when he tried to reduce the prices of songs at $0.99 per song on iTunes. He said that while doing so, the message they are sending the public is that they can check somewhere else if they want the movie.

Steinberg said that by holding off the pre-orders of the DVDs of the movies, Amazon.com, Inc. (NASDAQ:AMZN) is making an image of a monopolist in public opinion. He also said that this is an opportunity for other retailers to capitalize and take advantage of this fight. He said that because Amazon control 20 – 30% of the eCommerce market across the globe, people tend to think that it might be available elsewhere when they can’t find stuff on Amazon. “Does eCommerce start on the internet or does it start on Amazon?” Steinberg asked rhetorically.

Fortt added that Amazon.com, Inc. (NASDAQ:AMZN) needs to resolve the issues soon because of how it is being displayed, it looks like Amazon vs. content and not a fight between the companies. Steinberg said that the company wants to lower the prices, because they don’t get much margins on movies as compared to the books.

Disclosure: None

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