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.
"I'd say the companies are about as evenly matched as they get, but Amazon may have more leverage as the distributor because it can wait things out longer than Disney," said Tuna Amobi, an entertainment and media analyst for S&P Capital IQ.
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• Amazon wants cheaper books from Hachette
• Authors weigh in on Amazon, Hachette dispute
Amazon, whose chief executive, Jeffrey P. Bezos, owns The Washington Post, has demonstrated great determination in its increasing number of pricing disputes. Its dispute with the book publisher Hachette has only escalated over four months.
Over the weekend, 900 authors - including big names such as Steven King and Suzanne Collins - signed a petition that ran as a two-page ad in The New York Times. They said Amazon has singled them out for retaliation. Hachette has also accused Amazon of strong-arming the publishing industry with vast dominance in the e-books market. Amazon has tried to keep prices too low, Hachette and many authors say, which has harmed book writers and publishers.
Amazon responded with a website at www.readersunited.com, where it defends its practices, saying the "unjustifiably high" prices Hachette wants to charge for e-books are not in the interest of consumers.
-Bloomberg