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Amazon Plays Hardball with Hollywood

downloadThe message to Hollywood from the world’s largest online retailer is clear: you need us more than we need you. Amazon has stopped offering preorders of hot new movies on disc from Warner and now Disney in order to negotiate more favorable pricing from the studios.
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Beginning in May, Amazon ceased to accept preorders from major Warner movies, and now is doing the same with such Disney flicks as  Captain America: The Winter Soldier and Maleficent. 

The tactic demonstrates Amazon’s more hardcore approach to leveraging its position as one of the world’s major vendors of DVDs and Blu-rays.

Michael Pachter, analyst with Wedbush Securities, says that this may be the new normal, as Amazon begins to throw its weight around. Said Pachter:

“Yes, the rest of Hollywood should brace for similar tactics . . . Amazon investors don’t care if Disney merchandise isn’t available on Amazon, as third parties would have it available through Amazon.
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Will Amazon’s strongarm tactics backfire, or should Hollywood studios prepare to deal with this sort of thing going forward?

[via Home Media Magazine]

3 Responses to “Amazon Plays Hardball with Hollywood”

  1. Member [Join Now]
    s142424

    The movie companies will fight back soon just like the authors are.

  2. Member [Join Now]
    segarolow [segarolow-2]

    I don’t have Amazon for Online movies….
    I just use NetFlix and Warner Bros online…
    And even if you have the prime bit.You still need to pay for some of the stuff online…And about 25-30% of the time the CC does not work right, are at all.The Movie Co’s will tell Amazon to stuff it soon…
    And Amazon my get the shaft?

  3. Member [Join Now]
    segarolow [segarolow-2]

    Let them do it.. Amazon will lose in the end..
    You can get the New Movies on the Warner Bros site.. Are MalMart/Target..
    No big E… And the same with Disney..