August 11, 2014
Vacuum: Amazon CEO Jeff Bezos. Photo: AP
Amazon puts in with the Disney Corporation. The aim is to depress the prices of DVD and Blu-Ray discs. Renowned American writers protest against the methods of the Group. Investors want to see gains, however. We explain what is behind the fighting in Internet trading.
By what means fights Amazon?
The Disney -Konzern will soon begin marketing of DVD and Blu Ray for a series of very successful films in the United States. These include the latest Captain-America- and the recent Muppet Strip. Amazon blocked in these films on its portal the Vorbestellfunktion. Similarly, the company has acted between mid-May and late June as pre-orders for new films from Warner Brothers Group were not possible. In both cases, the shipper
negotiated simultaneously on conditions for the sale of the discs.
What exactly is in negotiations? None of the participating company wants to express themselves. Experts suggest that it involves both the absolute level of the price as well as the proportion, the Amazon conceded. With Warner Brothers, the online retailer has now agreed. Details were not disclosed. More generally, U.S. analysts believe that Amazon is sitting in these negotiations has the upper hand. Because the film industry is dependent on the DVD and Blu-Ray sales to be profitable with the movies. The share of Internet business in the sale of pieces of silver has risen rapidly in the past. And Amazon dominates here. Interestingly, however, the pre-orders of the Disney movies for Amazon’s Prime Instant Video service call can still be made. This obviously has to do with the fact that CEO Jeff Bezos wants to win more customers for this streaming platform.
If Amazon against other companies so aggressively?
For many weeks, the group argues with the publishing group Hachette on conditions for the sale of electronic books. Amazon provides the Hachette-products with extremely long delay. The background: Bezos will generally enforce a price of $ 9.99 per e-book. Hachette refuses. At the weekend, more than 900 writers published an open letter in the New York Times, protesting against the practices of the Group. Neither readers nor authors benefited from the fact that “books taken hostage” are, it says. The signatories include many famous writers such as Stephen King or John Gisham.
harm is Amazon with its practices do not themselves?
Basically it answer in the affirmative: A dealer who refuses to sell items to forego turnover. Amazon assumes however that the boycott of the opposite side – so the publishers or movie studios – hurts even more. This has to do with the dominant market position of the company. The sale of electronic books, the company, according to market research firm Forrester in the United States with a market share of around 60 percent. An Amazon is no way around that is for the publishers. But the tough negotiations also signal character for stockbrokers.
What does Amazon demonstrate to investors?
The online retailer is one of the highest rated companies in the United States, although it makes regular losses. Reason for the shortfall is the high investment. The Group permanently puts millions into new distribution centers to get the goods faster to the customer, which often culminates in increased sales. At the same time Bezos built the business with hardware from massively. The latest product is a smartphone. But that and also with the readers of the Kindle series and with tablet computers, the company makes no profits. The business model aims that the devices are used to always be bought from Amazon – especially electronic books and films about Prime Instant Video. That is, the investors make a bet: you bet that the investments pay off sooner or later, in that Amazon gains an ever greater market power, which ultimately can lead to huge profits. The pressure on publishers and film studios can be seen as a sure sign of the already dominant position in the Internet business.
Play the investors?
In the past year, the stock rose by almost 60 percent – a sign of confidence. End of July crashes the paper. Bezos had the time to announce deep in the red for the second quarter. The loss fell to $ 126 million from twice as high as forecast by analysts. And also Bezos had to announce a further expansion of the deficit for the third quarter. That left analysts and Unvestoren doubt grow the business model.
How did the practices of work in Germany from Amazon?
Again, the Group seeks exploit its market power. So the Americans fight with the publishing group Bonnier (Ullstein, Piper, Carlsen) on conditions for the sale of electronic books. It’s about how large the proportion is, the Amazon receives in this country each sold eBook. To make printing, Amazon has again delayed the delivery of Bonnier books. The retail prices are fixed in this country but more or less on electronic books. The Association of German Book Trade ensures that resale price maintenance is adhered to, as it also applies to printed books.
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