Apple's e-book deal cleared; Beats Music chief to run iTunes Radio

Though she previously expressed concerns about the deal, Judge Denise Cote has approved Apple's (AAPL +0.6%) $450M e-book price-fixing settlement.

The deal calls on Apple to pay $400M to consumers and $50M to lawyers if an appeals court upholds Cote's ruling on the case, and $50M and $20M if it overturns them. In today's ruling, Cote says states and consumers "strongly believe" her findings will be upheld.

If upheld, the payout will still only amount to a moderate financial hit for Apple, which had FQ3 net income of $7.7B.

Separately, with Beats now officially a part of Apple's empire, the WSJ is reporting Beats Music chief Ian Rogers will also run iTunes Radio going forward.

The paper adds Rogers will be in charge of both services to "create cohesion in Apple’s streaming-music options." One current point of non-cohesion: Beats Music is available on iOS, Android, and Windows Phone, while iTunes Radio's mobile support is limited to iOS.

Two months before the Beats deal was announced, Billboard reported Apple was mulling an Android iTunes app, and holding talks about launching a Spotify-like music streaming service; Beats Music has eliminated the need for the latter.

Earlier: Apple officially closes Beats deal

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Comments (9)
  • User66224
    , contributor
    Comments (211) | Send Message
    " Billboard reported Apple was mulling an Android iTunes app"


    My guess is the acquisition also eliminated the need to mull this and start work on implementation.
    1 Aug 2014, 05:50 PM Reply Like
  • thotdoc
    , contributor
    Comments (1966) | Send Message
    50MM$ for the lawyers.


    That's a lot of money.
    1 Aug 2014, 06:42 PM Reply Like
  • Hardog
    , contributor
    Comments (16991) | Send Message
    Our lawyers charge $300/hr and their paralegals on for $150/hr. ya know the PLs are not getting anywhere near that amount.
    1 Aug 2014, 10:38 PM Reply Like
  • DanoX
    , contributor
    Comments (3491) | Send Message
    The Android App will be cut out along with the Windows phone version. If the iOS version isn't where Apple wants it to be, they won't keep the other two versions around Apple is about profit not freebies.
    1 Aug 2014, 08:38 PM Reply Like
  • TechEnthusiast
    , contributor
    Comments (800) | Send Message
    >>Cote observes states and consumers "strongly believe" her findings will be upheld.<<


    Judge Cote can speak for herself, and she can speak for "the states" because she really means the attorneys general for he states involved, and she can speak to these folks and read what they have said about the case.


    But for her to declare that "consumers" strongly believe her findings will be upheld belies her ridiculous opinion of herself. Many consumers of iBooks are Apple fans and a great deal of these folks do not fault Apple here.


    In peer reviews it is said that Cote is smug and prone to prejudging her cases. This seems obvious with quotes from her saying how "the consumer" feels about her ruling. This consumer wishes she would find it in her heart to retire to a farm where she can sit around and prejudge everything around her without causing harm to others.
    1 Aug 2014, 08:41 PM Reply Like
  • Rich in NJ
    , contributor
    Comments (82) | Send Message
    She did prejudge this case.


    At a preliminary hearing leading up to this trial:


    “I believe that the government will be able to show at trial direct evidence that Apple knowingly participated in and facilitated a conspiracy to raise prices of e-books, and that the circumstantial evidence in this case, including the terms of the agreements, will confirm that.”

    2 Aug 2014, 01:04 PM Reply Like
  • TechEnthusiast
    , contributor
    Comments (800) | Send Message
    Yes, exactly right. The counterpoint was that a judge gets to read all of the discovery findings and so already has a good idea of what will be presented when the trial actually begins. But in her ruling, she expressly disqualified the testimony of Apple's Eddy Cue saying it was not credible. What he said made her conclusion impossible if it were true so she just decided to call him a liar.


    It put Apple in an odd position. The judge had announced in advance who would win and testimony Apple presented to the contrary was summarily dismissed. It was a farce. No wonder Apple feels good about their chances upon appeal.


    I should add that I thought Apple was probably guilty of being over zealous and crossing the legal boundary at the outset. But in the course of the trial I became convinced that what they did was legal for a distributor to do. They were not party to the publisher's talks when they colluded and as a distributor their legal role was not the same as the publishers. I thought the evidence changed my mind and so might change Cote's mind as well. But as you say, she had already decided how she would rule.


    The only question that remains is why she was so bound and determined to rule on the side of the DoJ in this case.
    2 Aug 2014, 03:39 PM Reply Like
  • SA User 74XXXXX
    , contributor
    Comments (836) | Send Message
    Ian Rogers will make Apple's music cloud The Best Thing :)
    2 Aug 2014, 12:58 AM Reply Like
  • Topcat
    , contributor
    Comments (579) | Send Message
    I doubt Android users, with many radio and streaming options, would want ITunes trash on Android...
    3 Aug 2014, 09:31 PM Reply Like
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