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Old 12-18-2012, 07:25 PM   #1
BeccaPrice
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Penguin settles with DoJ

http://livewire.talkingpointsmemo.co...ll-suing-apple

"As part of the settlement, Penguin agrees to "terminate" its relationship with Apple and other e-books publishers and is blocked for the next two years from launching any new partnerships. Even if the major publishing company does decide to launch new agreements when it's cleared to do so, it has to "provide advance notification" to the DOJ. "

More detailed news is sure to come.
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Old 12-18-2012, 07:35 PM   #2
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Old 12-18-2012, 07:55 PM   #3
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I've been expecting this ever since the announcement of the Random Penguin merger.
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Old 12-18-2012, 08:00 PM   #4
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So, only Apple and Macmillan left then. I wonder if Penguin settling is making either of them rethink their decision to go to trial.

If not, things'll be interesting come June.
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Old 12-18-2012, 08:02 PM   #5
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Excellent. The more of this the better. Damn corporations!
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Old 12-18-2012, 08:14 PM   #6
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Who flips first? MacMillan or Apple?
Going to get lonely for the last one standing on the docket.
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Old 12-18-2012, 08:17 PM   #7
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Apple started it, they should have to end it.
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Old 12-18-2012, 08:19 PM   #8
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My guess is MacMillan will fold first. Neither one want to go to trial, but MacMillan has more to lose.
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Old 12-18-2012, 08:20 PM   #9
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I expect MacMillan will settle before the June court date, since their existing pricing scheme only hurts them. Even Random House will eventually be subject to the DOJ conditions due to its merger with Penguin. Apple has tons of cash to throw at lawyers, they might go the distance.
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Old 12-18-2012, 08:34 PM   #10
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What does Apple stand to gain, at this point, even if they were to win the suit (many months hence)? Facts on the ground have changed quite a bit. They have already had to adapt to non-agency pricing of ebooks, and will have to continue with that for the next couple of years at least. They are not going to get their nice, tidy one-size-fits-all (apps, music, video ebooks etc) business model back. They tried, and they have manifestly failed.
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Old 12-18-2012, 08:38 PM   #11
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I think the remaining two will settle before June. I wouldn't be surprised if they're already in the process of negotiating something and it just hasn't been announced yet because stuff like money hasn't been agreed upon yet.
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Old 12-19-2012, 05:00 AM   #12
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What does Apple stand to gain, at this point, even if they were to win the suit (many months hence)? Facts on the ground have changed quite a bit. They have already had to adapt to non-agency pricing of ebooks, and will have to continue with that for the next couple of years at least. They are not going to get their nice, tidy one-size-fits-all (apps, music, video ebooks etc) business model back. They tried, and they have manifestly failed.
music on Itunes is done wholesale not agency
same with movies.

If it was agency, other online retailers can't discount MP3 or Movie rental but AMazon and GooglePlay discount these all the time.

Only Apps and Ebooks are agency
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Old 12-19-2012, 05:23 AM   #13
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This certainly indicates that DoJ have pretty compelling evidence against these companies, particularly Apple.
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Old 12-19-2012, 08:21 AM   #14
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music on Itunes is done wholesale not agency same with movies.

If it was agency, other online retailers can't discount MP3 or Movie rental but AMazon and GooglePlay discount these all the time.
You are confusing "a"gency with "A"gency.
Apple's music and video are on an agency basis, because they simply act as a storefront for the content owners, and take their fixed cut. Apple do not set the prices for content, they have a set list of allowable prices, and the content owners pick which ones to apply to each item.
They are not on an "A"gency basis, because their is no most-favoured-nation clause, nothing preventing the content owners selling music and video to other retailers on different terms.
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Old 12-19-2012, 08:50 AM   #15
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