The Walt Disney Company (DIS) & Amazon.com, Inc. (AMZN) Should Resolve Feud Fast: Tuna Amobi

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Amazon.com, Inc. (NASDAQ:AMZN) and The Walt Disney Company (NYSE:DIS) both have an incentive to quickly resolve their new feud, Tuna Amobi, an S&P Capital IQ analyst, said in a discussion which also featured Paul Sweeney on Bloomber Intelligence.

Amazon, is Amazon a good stock to buy, Disney, is Disney a good stock to buy, Tuna Amobi, Paul Sweeney

Amazon.com, Inc. (NASDAQ:AMZN) and The Walt Disney Company (NYSE:DIS) are embroiled in a new battle as the internet retailing giant has stopped accepting preorders for Captain America: The Winter Soldier, Maleficent and other Disney movies which are about to come out on DVDs and Blu-rays.

According to Amobi, he sees Amazon.com, Inc. (NASDAQ:AMZN) and The Walt Disney Company (NYSE:DIS) having a lot of incentive to resolve this feud in the soonest possible time.

“I think Bob Iger really has an incentive to see that this is resolved as soon as possible. You’re talking about Captain America: The Winter Soldier and Malifecent, the number one and the number four films in the domestic box office this year. I [also]know that Wall Street is really counting on these home video releases to be a part of the fiscal fourth quarter and into the next fiscal year. Having said that, I think Amazon, as important as a retailer that it is, I think what Disney has done is to try to divert consumers to other sites like Wal-Mart and Target. My sense is that with the release dates for these DVDs still several weeks ahead, I think both parties really have an incentive to resolve this,” Amobi said.

The latest battle Amazon.com, Inc. (NASDAQ:AMZN) has gone into with The Walt Disney Company (NYSE:DIS) comes as it still is battling the Hachette Book Group USA and now authors as well with regards to e-book pricing and revenue sharing. The tactic Amazon.com, Inc. (NASDAQ:AMZN) is using against The Walt Disney Company (NYSE:DIS) is similar to what it used against the publisher. The e-commerce behemoth stopped accepting pre-orders, delayed shipping, or retracted or reduced discounts for books.

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1 Comment

  1. DIS holds all the cards here. The content is what consumers want and they have other avenues to get it and they well. What is Amazon’s fall back, to make competing content, that hasn’t worked so well for them and they are fighting the 1600 lb gorilla in Disney on that front. This is an issue with Amazon’s business model, the issue isn’t with Disney, it’s with the way Target and Walmart and Best Buy are fighting Amazon. It is interesting that investors are finally holding Amazon accountable for actual profits.

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