The Disney-Amazon Streaming Standoff: Who Holds the Leverage?

Who holds the cards in the growing streaming squabble between Disney and Amazon? It depends on who you’re asking. The Mouse House and the tech behemoth are currently in a standoff: Amazon wants a cut of Disney’s ad inventory — up to 30% — from its array of streaming apps, the Wall Street Journal reported on Thursday. Disney isn’t going for it, and it’s the reason Disney+, its upcoming streaming service, currently won’t be included on Amazon’s Fire TV devices when it launches next month. Industry experts believe a potential deal, like all others, will hinge on one thing: leverage. And you can make a compelling case for each company having it. Missing out on Disney+, a service projected to be a hit with subscribers right out of the gate, would be a major whiff for Amazon, according to Bruce Leichtman, president of Leichtman Research Group. Without it, Amazon’s streaming-device competitors like Roku and Apple TV would stand to reap big benefits. “How much leverage does Amazon really have? There are so many other ways people can watch a streaming service,” Leichtman said. “Certainly, Disney or anyone else with a streaming service wants to be carried on all platforms. But...

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