Price wars between Amazon.com, Inc. (NASDAQ:AMZN) and The Walt Disney Company (NYSE:DIS) continue to near fever pitch as revelations continue to emerge that price may not be the only issue according to CNBC’s David Faber. The Wall Street Journal is cited by Faber that the standoff in a way has to do with placement and product promotion on Amazon website as well as who is to cover the difference when Amazon loses money when trying to match competitor’s prices.
Amazon.com, Inc. (NASDAQ:AMZN) has already withheld pre-orders for The Walt Disney Company (NYSE:DIS)’s hit movies ‘Captain America: The Winter Soldier’ and ‘Maleficent’ as it continues to push for better pricing terms. Amazon has been withholding sales of certain products, especially when trying to gain leverage in negotiations with content providers.
“Price is not the only factor in the dispute between Amazon.com, Inc. (NASDAQ:AMZN) and The Walt Disney Company (NYSE:DIS). The Wall Street Journal reports the standoff also encompasses promotion and product placement on Amazon website as well as questions over who makes over the difference when Amazon loses money to match the price of competitors. Amazon has stopped taking pre-orders for numerous Disney Movies,” said Mr. Faber.
Amazon.com, Inc. (NASDAQ:AMZN) is already entangled’ in tussle with Hachette Book Group on price related issues over books, it carries on its website. Authors have already aired their anger about the company, alleging that the e-Commerce is exploiting its position as a giant retailer in the online space.
The ongoing tussle according to CNBC’s Jim Cramer is in no way affecting Amazon.com, Inc. (NASDAQ:AMZN), on the fact that the company is extremely powerful with a huge market share in the space. Books sales of some of the dominant names in the book industry such as, James Patterson, are already being affected as a result of the ongoing tussle with Hachette.
“I think they are invincible. […] They are just so powerful, and Amazon Prime is so powerful. The book stores where you sell are not powerful at all, and that’s kind of counterweight,” said Mr. Cramer.
Pricing disagreement between Amazon.com, Inc. (NASDAQ:AMZN) and Warner Bros did not last long, but analysts in Wall Street expect the ongoing standoff with Hachette and The Walt Disney Company (NYSE:DIS) to drag for quite some time. The e-tailer move in a way can be seen as a response to immense pressure it has been receiving from its own investors who have aired the concerns over profit levels that have been dwindling because of aggressive pricing strategies.