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Amazon's power only goes so far with Disney: Cramer

Authors can't stand up to Amazon but studios can, said Jim Cramer on Wednesday's "Squawk on the Street."

"You can't roll Disney, you can roll individual writers who live off of that money. Writers are powerless against Amazon. Disney is not powerless," Cramer said.

After nearly a two-month dispute during which time the online retailer Amazon had stopped offering Disney DVD's for preorder, the Wall Street Journal reports the two companies are close to settlement.

"Guardians of the Galaxy" and "Maleficent" are once again available for purchase on Amazon as of last week.

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The two companies have been at odds over pricing and promotion on the Amazon website. Ultimately the question is who makes up the difference when Amazon loses money in order to match the prices of its competitors.

Investors often lump together Amazon's dispute with Disney along with their dispute with Hachette, one of America's top five publishers. The argument between Hachette and Amazon is specifically about the authors and wanting lower prices on e-books, both retail and wholesale.

While the details of the talks between the retailer Amazon and supplier Disney are not available, it is not clear if Amazon has simply conceded, or if they have reached a long-term agreement.

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