Saturday, October 4, 2014

Amazon and Disney come to an agreement

While we have all been paying attention to Seattle-based Amazon's on-going battle with Hachette we missed their two month long battle with Disney. As reported by The Wall Street Journal battle started in August. Unless you had children you probably didn't notice that you couldn't pre-order Million Dollar Arm, Maleficent, Capetian America: The Winter Soldier and other new releases. There was no big blow up that has been associated with the 9-month long book publish feud.
"They are squeezing studios on DVD pricing, understandable given their market position," said Wedbush Securities analyst Michael Pachter. "Disney can't cut them off, and Amazon can cut Disney off, so I would say Amazon has the leverage."
The details of just what the caused the dispute between the two media giants is not entirely known. The one thing that we do know is there was talk about who would make up for any loses that Amazon might incur promotional offers by Disney. Pricing and discounts of DVDs are probably involved to some point in the negotiations. It is almost certain there was also some talk about returns and supplies.
Disney has also been having a dispute with Bellevue-based Outerwall over the over how long the Bellevue company should have to wait between the time a DVD is first release before they can offer it in their Redbox kiosk. Disney wants the Bellevue company to wait 28-days just like they do with every other movie studio. Outerwall, on the other hand, argues that since Disney is so family oriented there is a uniqueness to them and they should be able to offer Disney movie closer to the release date. The dispute has been going on for two years and in that time Outerwall has been purchasing the movies from distributors other than from Disney.
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