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Amazon Takes on Disney in DVD Pricing Fight

Bloomberg:

The move signals that Amazon, the world’s largest Web retailer, is increasingly willing to keep certain items from consumers to put pressure on its vendors. It also spotlights the extent of Amazon’s clout in the home-entertainment market. Studios count on sales of DVD and Blu-ray versions of their movies to help deliver profits because few films reach profitability in theaters.

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

Sounds like it’s time for the U.S. Department of Justice to investigate Apple again.

Tuesday, 12 August 2014