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Amazon has a new standoff, with Disney

Online retailer Amazon blocks pre-orders as it presses for bigger share of profits from sale of Disney products.
Advertisement’s business tactics and power over the retail and media economy are again under the spotlight with a new dispute spilling into public view, this time with a media powerhouse: Disney.

The online retailer reportedly removed pre-orders of DVDs and Blu-ray discs for the Walt Disney Co.’s blockbuster movies “Captain America: The Winter’s Soldier” and “Maleficent,” according to Home Media Magazine.

By blocking pre-orders of films as a negotiating tactic, Amazon is flexing its muscles over how much it gets per sale as a distributor of Disney’s films and merchandise, analysts say. Amazon has used a similar approach with Time Warner’s home video division this year, blocking pre-orders of discs for films including “The Lego Movie.”

Amazon and Disney did not return requests for comment.

The dispute will not immediately hurt Disney, because DVDs are a small part of its overall revenue, analysts say. But box-office sales have been lackluster and movie studios have placed greater attention on DVD and Blu-ray sales to extend the profits of its films.

The pricing dispute comes at a time when media and distribution companies are converging, with Amazon Instant Video serving as both a partner and competitor with Disney and other Hollywood studios.

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