Gone are the days of Amazon not making a profit for its first seven years while sipping on lemonade with its feet up.
Fresh off its ongoing beef with Hachette, the Jeff Bezos’ property is now locking up with Disney over what Deadline reports to be how much to price DVD titles such as Captain America: The Winter Soldier, Maleficent and Muppets Most Wanted.
While Deadline states that the “titles are finding their way into Amazon competitors such as Best Buy and Target via DVD and Blu-Ray, but they are not being sold on Amazon”, my eyes noticed a different story: none of the retailers mentioned are selling the films yet. They’re all offering them as pre-orders.
Still, this new confrontation is revealing. New York Times’s David Streitfeld laid out Bezos’s financial thorn in a very straight-forward way.
“Amazon does not want to be seen as hostile to content creators, one of the four groups it says on its investor relations web page it is expressly set up to serve. But it also has to price their creations cheaply enough to draw hordes of consumers, while at the same time making enough of a profit to satisfy investors.
It is a complicated balancing act. Some argue it is impossible. Amazon just surprised Wall Street by saying it may lose more than $800 million this quarter, potentially wiping out its profits for the last three years, partly because creating video content is expensive. The prospect of this unexpected loss has raised questions about whether Amazon’s money-losing ways are finally catching up with it — and whether that is the real reason it is making new demands on publishers like Hachette.”
Amazon is that kid that’s been partying up all night at their parents’ house and, frantically the next morning, yelling at drunken party members to wake up–the same drunken party members it was drinking tequila out the ear lobes a few hours before.
The book-and-whatever-else store has also just woke up.
Hopefully for its sake, when the piper needs to be paid the parents at the door will be whoever raised Miley Cyrus and not Tiger Mom.