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

A man walks by Pfizer headquarters, Friday, Feb. 5, 2021, in New York. Pfizer will spend about $43 billion to buy Seagen and broaden its reach into cancer treatments, the pharmaceutical giant said Monday, March 13, 2023. (AP Photo / Mark Lennihan, File)
Pharmaceutical giant Pfizer to acquire Bothell-based Seagen

Pfizer announced Monday it plans to acquire Seagen in an all-cash deal for $43 billion.

Lacie Marsh-Carroll stirs wax before pouring candles in her garage at her home on March 17, 2018 in Lake Stevens. (Kevin Clark / The Daily Herald)
Women business owners in Snohomish, Island counties make their mark

In honor of Women’s History Month, we spotlight three local business owners.

x
Edmonds International Women’s Day takes place Saturday

The Edmonds gathering celebrates women and diversity with this year’s theme, “EmbraceEquity.”

Owner and CEO Lacie Carroll holds a “Warr;or” candle at the Malicious Women Candle Co workspace in Snohomish, Washington on Wednesday, Feb. 15, 2023. The business is women run and owned. (Annie Barker / The Herald)
Malicious Women Co: She turned Crock-Pot candles into a sassy venture

Lacie Marsh-Carroll is rekindling her Snohomish candle company with new designs and products.

Kelly Matthews, 36, left, Tonka, 6, center, and Nichole Matthews, 36, pose for a photo in their home in Lynnwood, Washington on Thursday, Feb. 2, 2023.  The twin sisters work as freelance comic book artists and illustrators. (Annie Barker / The Herald)
Drawing interest: Twin sisters never gave up on making their mark

Lynnwood sisters, Kelly and Nichole Matthews, got their big break a decade ago and now draw comics full time.

Willow Mietus, 50, poses for a photo at her home in Coupeville, Washington on Wednesday, Feb. 1, 2023. Mietus bought a former Frito-Lay truck to sell her dyed yarn out of. She calls it "The Wool Wagon." (Annie Barker / The Herald)
The Wool Wagon to hit the streets of Whidbey Island

A self-described “professional yarn temptress” from Coupeville is setting up shop in a modified truck.

IonQ will open a new quantum computing manufacturing and research center at 3755 Monte Villa Parkway in Bothell. (Photo courtesy of IonQ)
Quantum computing firm IonQ to open Bothell R&D center

IonQ says quantum computing systems are key to addressing climate change, energy and transportation.

Nathanael Engen, founder of Black Forest Mushrooms, sits in the lobby of Think Tank Cowork with his 9-year-old dog, Bruce Wayne, on Friday, Jan. 27, 2023, in downtown Everett, Washington. (Ryan Berry / The Herald)
Growing green mushrooms in downtown Everett

The founder of Black Forest Mushrooms plans to grow gourmet mushrooms locally, reducing their carbon footprint.

Barb Lamoureux, 78, poses for a photo at her office at 1904 Wetmore Ave in Everett, Washington on Monday, Jan. 23, 2023. Lamoureux, who founded Lamoureux Real Estate in 2004, is retiring after 33 years. (Annie Barker / The Herald)
Barb Lamoureux, ‘North Everett’s Real Estate Agent’ retires

A longtime supporter of Housing Hope, Lamoureux helped launch the Windermere Foundation Golf Tournament.

Bothell
AGC Biologics in Bothell to produce new diabetes treatment

The contract drug manufacturer paired with drug developer Provention Bio to bring the new therapy to market.

The Walmart Store on 11400 Highway 99 on March 21, 2023 in in Everett, Washington. The retail giant will close the store on April 21, 2023. (Janice Podsada / The Herald)
Walmart announces Everett store on Highway 99 will close on April 21

The Arkansas-based retail giant said the 20-year-old Walmart location was “underperforming financially.”

Everett Memorial Stadium and Funko Field on Wednesday, Sept. 2, 2020 in Everett, Washington. (Olivia Vanni / The Herald)
Drive to build new AquaSox ballpark gets $7.4M boost from state

The proposed Senate capital budget contains critical seed money for the city-led project likely to get matched by the House.