Will Amazon's Fights with Hachette and Time Warner Affect its Business?

The company is involved in two high-profile disputes that are causing hot new releases to not be available.

Jun 20, 2014 at 8:26AM

Amazon's (NASDAQ:AMZN) dispute with book publisher Hachette has led to popular titles not being available for pre-order, shipping delays on some books, and questions as to whether the company will face more pushback from its suppliers over terms. That appears to be happening as some product distributed by Time Warner (NYSE:TWX), including the popular Lego Movie, are either not available on Amazon or have shipping times that are longer than the retailer's two-day standard.

"Amazon has been bulletproof. They can do whatever it is they want and their user base doesn't care," panelist Daniel Kline said on Business Take, the show that gives you the Foolish perspective on the most important business stories of the week. "The question is, what's the tipping point?"

The Time Warner dispute may get more attention than the Hachette battle because The Lego Movie is highly anticipated by families with young children. If it's not available, people might shop elsewhere. If customers register on another website to make the purchase, that could cause Amazon problems down the line since the fact that 244 million people already have credit cards on file with the online giant is one of its main competitive advantages.

"The timing is horrible for Amazon," panelist Jake Mann said. "In the current market what's to stop customers from fearing that Amazon won't have other titles in the future?"

"It's a matter of trust," Kline said. "If you start going to stores that have empty shelves you go to other stores."

To compound Amazon's problems Wal-Mart (NYSE:WMT) and Barnes & Noble (NYSE:BKS) have been selling the items Amazon has availability problems with at large discounts to lure in customers.

"Amazon has to do this," host Jason Hellmann said. "They have to take a hard line with their vendors."

Hellmann explained that Amazon operates on razor-thin margins due to its low prices. Part of the way the company maintains those prices is being strict with vendors and demanding favorable terms. In the past Amazon -- due to its size -- has been able to do that pretty much across the board. These vendor problems suggest that the company may have pushed so hard that certain vendors may be willing to forego the opportunity to reach Amazon's customer base if it means accepting unfavorable terms.

Will these disputes cause Amazon to lose customers? Should the company hold the line or give in to its vendors? Watch the video below for the whole story then share your thoughts and comments below.  

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Daniel Kline has no position in any stocks mentioned. Jake Mann has no position in any stocks mentioned. Jason Hellmann has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com and Barnes & Noble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers