Internet Delivers 33 Percent of Home Entertainment in US

Viewers increasingly embrace streaming services to view their favorite content.
5:06 | 08/11/14

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Transcript for Internet Delivers 33 Percent of Home Entertainment in US
-- It's Monday August 11 that financial markets and New -- -- open -- today's big number 33%. Plus. That is the percentage of home entertainment nationwide now delivered. Over the Internet streaming movies TV shows all the like 33% in fact is up. From just 4%. Ten years ago everyone I'm Dan -- New York. They're here to discuss the sea change how we watch TV mikes -- -- -- Yahoo! -- joining us on this Monday morning. Mike you look at 4% from a decade ago now 33% that is a huge jump Hulu Amazon Netflix really making inroads -- business. Huge jump and you know I can't decide if the third sounds higher load of me and -- it seems to me that where we're kind of increasing. At such a fast pace in terms of the the online streaming consumption. Of media that it seems like this is inevitably going to be majority very soon as opposed to kind of buying you know physical disks and other products like that so. It clearly the idea that. Any Internet enabled device is now -- television is now -- media consumption device has been not you know completely widely embraced by everybody. We are certainly -- blurring the lines except for how we're getting -- information but. Here's -- kind of a little trick you know what should clear up what you can on this what happens if -- provider. The size of fact not to make certain contents available -- on every effort particular case Amazon. Decided to block pre orders of Disney's hit movies Captain America the winter soldier but left the sent. Of course Disney parent company of ABC news but what is behind that kind of decision is back. -- -- -- -- Amazon is essentially stopped taking pre orders of a physical desks for those movies that you mentioned and it's happened before they did this with Warner Bros. earlier this year. So what it's -- -- about this is that because. You know as we just discussed the majority. -- home entertainment products do do come in physical form at least for the moment there is some power than Amazon hasn't saying look. The terms of pricing they they want it more in their favor the customer's favor. They don't want necessarily Disney or Warner Bros. or another studio to have as big a -- presumably is what this is all about. And it mirrors what Amazon is doing. With the book publishers this long running fight with Hachette is the most prominent one so basically what happens here is. Amazon says look. Date we think that you need us more than we need you. And at least temporarily we're gonna cut off our customer access to your products. -- -- you give us some kind of concessions on -- So it's really -- -- -- it's a matter pressure unfortunately the consumer loses out in the short term and a situation like this but it is in that who looks like to have the upper hand. You know it's -- just saying I might take on it is that. Amazon you know is is perfectly able to forgo whatever sales -- through the dvds. I think Amazon though has less leverage here than it has against the book publisher like cash yet because obviously the book -- it's all they sell -- books. -- has by far the biggest distributor. Disney yet dvd it really nice business actually helps a profit margins of most theatrical releases. But it's declining business we know that best buy right now we'll take a pre order for any of those movies he can get it elsewhere. It's just not as big I think a leverage point that Amazon has over a Walt Disney or Warner Bros. -- -- did. Over the the book publishers so it's really more of a minor and probably temporary inconvenience for the Amazon customer. But I think it's a problem potentially uninteresting. Little fight just to kind of clear up exactly who does have leverage what customer preferences are gonna say what -- and -- pay these prop. And just to kind of pilot the intricacies of this kind of arrangement now and how the landscape has changed so much -- that you can still actually. Is stream these online -- correct. Right so Amazon will allow you through its streaming service -- ordered these these movies up once there -- available so I do think. It -- who knows if that's part of this negotiation we don't know if the contract. You know with the studios encompasses the streaming rights as well as the physical dvd rights. I've this is just some kind of you know minor point related to exactly what that the kind of distributions going to be. On the dvds so yeah it's not as if the world is is being. You know prevented from having access to this this material it's just kind of -- this one channel. -- if it seems like a little bit of the give and take over negotiations is impacting some of these prominent leases one -- -- I do you think here and just to point out how it's not the same is different kinds of contact you know if if a young if a kid wants to see. A lot to say they want that dvd -- want to watch it ten times a week. He did not know they're making no parent can go to them and say apple wanted to have this other generic movie never heard. Right they want that particular movie it's it's a little bit different I think than any other than most other Amazon product that -- And very very interesting. Battling battle kind of fighting out there. My sense look at Yahoo! finance on this Monday morning Mike thank you so much appreciate it all right thanks and a scorching keep up latest headlines right here on abcnews.com. That much -- number. I'm Jen Butler New York.

This transcript has been automatically generated and may not be 100% accurate.

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