Amazon blocks pre-order of Disney DVDs amid spat

SAN FRANCISCO — Amazon.com blocked the pre-order option of Walt Disney hit movie “Captain America: The Winter Soldier” and other titles in disk form, repeating a tactic used in disputes with publisher Hachette and Warner Bros.

“Maleficent,” another Disney summer blockbuster, also isn’t available for DVD pre-order on Amazon’s website. The world’s largest online retailer still offers both movies in pre- order on its online streaming service.

Amazon’s clashes with media companies have intensified in the past months as the Seattle-based company seeks to use its heft in markets from books to home video to demand better terms from its vendors. While the dispute with Time Warner’s Warner Bros. is getting resolved, the spat with French publisher Hachette Book Group is escalating.

“They are squeezing studios on DVD pricing, understandable given their market position,” said Michael Pachter, an analyst at Wedbush Securities who rates Amazon the equivalent of a hold. “Disney can’t cut them off, and Amazon can cut Disney off, so I would say Amazon has the leverage.”

Home Media Magazine reported the disappearance of the pre- order option for some Disney DVDs, also including “Muppets Most Wanted” and “Million Dollar Arm,” last week. When Amazon removed pre-orders for Warner Bros. titles from mid-May to late June, it was the first time it used the tactic during negotiations with a movie studio, Home Media Magazine said.

Paul Roeder, a spokesman for Burbank, California-based Disney, declined to comment. Amazon didn’t return calls seeking comment.

Studios count on the home-entertainment market, including DVD sales from Amazon, to help deliver profits. In fact few films reach profitability in theaters because studios split ticket sales with exhibitors.

“Captain America” is the top-grossing movie in U.S. and Canadian theaters this year, with ticket sales of $259.5 million, according to researcher Box Office Mojo. “Maleficent” is fourth.

Among the Warner Bros. pre-orders that Amazon blocked for about a month earlier this year were “Transcendence” with Johnny Depp and “The Lego Movie,” the second top-grossing movie this year. Those titles are now available.

In digital-book sales, Amazon dominates with a 60 percent share of the market, according to Forrester Research. The online retailer also helped pioneer the e-book market with the introduction of the Kindle device in 2007.

Last week, Amazon made its case for lower book prices in its standoff with Hachette, saying that sales of titles go up when prices are cut, based on data gathered on its website. For every copy of an e-book that sells at $14.99, Amazon would sell 74 percent more e-books if priced at $9.99, the retailer said.

A letter signed by more than 900 authors was published in The New York Times on Sunday, urging readers to tell Amazon Chief Executive Officer Jeff Bezos what they think of the disagreement over the price of digital books. Amazon had itself asked readers to contact Hachette CEO Michael Pietsch last week.

“Just as paperbacks did not destroy book culture despite being ten times cheaper, neither will e-books,” Amazon said in a letter on its website, readersunited.com. “We will never give up our fight for reasonable e-book prices.”

Amazon also appealed directly to authors in a letter last month, offering them all of the proceeds from the sale of any e- book during the dispute.

Talk to us

More in Herald Business Journal

The City of Arlington filed a lawsuit seeking the closure of the Smokey Point Motor Inn because of excessive criminal activity on the property. Tuesday, Sept. 21, 2021 in Arlington, Washington.  (Andy Bronson / The Herald)
Arlington wants to close motel, center of ‘criminal activity’

In the past few years, police have responded hundreds of times to the Smokey Point Motor Inn.

A handful of Northwest Union Carpenter members picket in front of the new Marysville civic center construction site on the sixth day of a region wide union carpenter strike on Wednesday, Sept. 22, 2021 in Marysville, Wa. (Olivia Vanni / The Herald)
Union carpenters picket at Marysville and Everett projects

The Marysville Civic Center and an Everett Amazon building are among dozens of construction sites affected.

Twins Leslie Davis (left) and Lyndsay Lamb stage a house in Everett as seen on the second season of "Unsellable Houses" on HGTV. (HGTV photo)
Sold: Snohomish twins back for more HGTV ‘Unsellable Houses’

The makeover show’s 13 episodes feature Snohomish County homes, with decor items sold at new store.

Tuesday's career fair will be at Everett Community College, which incidentally is also one of the participants. (Sue Misao / Herald file)
Snohomish County Career Fair set for Tuesday at EvCC

Job seekers can connect with more than 40 employers at this year’s annual event.

Snohomish County unemployment rate drops slightly to 5.6%

Washington added 16,800 jobs in August.

Report: Criminal indictment coming for former Boeing official

Mark Forkner was the 737 Max Chief Technical Pilot who is alleged to have lied to aviation regulators.

Workers build the first all-electric commuter plane, the Eviation Alice, at Eviation's plant on Wednesday, Sept. 8, 2021 in Arlington, Washington.  (Andy Bronson / The Herald)
All eyes on Alice, the electric plane made in Arlington

If all goes well, Eviation’s battery-powered airplane will make its debut test flight later this year.

Bufeng Gao, owner of Qin Xi'an Noodles, receives a check from the Edmonds Chamber Foundation's Wish Fund outside of her restaurant that was burned in a fire on Thursday, Sept. 16, 2021 in Edmonds, Wa. (Olivia Vanni / The Herald)
After arson burns Edmonds plaza, 14 businesses need help

Plum Tree Plaza — a cultural hub for Asian Americans — burned in a three-alarm fire early Sept. 11.

Hand drawn vector illustration of bottle of red wine and two glasses. Abstract cartoon style isolated.
You voted: The best wine list in Snohomish County

Even during a pandemic, folks still have their favorites.

Boeing sells land for $200M in plan to shrink holdings

Boeing has sold 310 acres of undeveloped land next to its Frederickson manufacturing plant.

Washington August jobless rate was 5.1%; 16,800 jobs added

August’s rate was the same as July’s rate, and increased even as COVID-19 cases surge.

Boeing moving 150 jobs from Washington and California to Texas

The affected jobs are in the company’s global parts distribution unit.