The Winfrey-Apple Deal to Compete with Netflix and Amazon. Apple Serious in Quest to Escalate Tech battle for A-list Talent Landing the Winfrey Deal is a Mega-Coup for Apple!
According to the LA Times, the Cupertino tech giant, “Apple Inc. has struck a multiyear deal with Oprah Winfrey to produce original content, the technology giant announced Friday as the battle for talent among tech titans and traditional studies keeps heating up.”
Winfrey, a media giant, who has one of the most influential voices is expected to also have an “on-screen role in the new Apple programming.”
Apple has been courting Hollywood to produce original programming for the company, which manufactures streaming devices called Apple TV. According to the company, “they have not said when it plans to launch the upcoming streaming service that will carry its shows, or what it will cost.” Most likely, according to people in the know, will probably debut in 2019. “The iPhone maker’s content ambitions are part of a push to diversify its revenue beyond the devices it makes and apps produced by other developers.”
Meanwhile, Netflix and Amazon Studios continue on with original content. “Netflix has signed lucrative producing agreements with the likes of Ryan Murphy and Shonda Rhimes, who are best known for making hit shows on traditional primetime networks such as Fox and ABC.”
Recently, Amazon Studios announced “a first-look pack with Get Out writer-director Jordan Peele, one of the biggest deals yet for Amazon’s streaming-video arm.”
Hulu, which is owned by a collection of major media companies, has an original hit in The Handmaid’s Tale, produced by MGM. And then there is Walt Disney Co., “who is preparing to launch its own Netflix competitor next year, with programming from its brands including Star Wars, Marvel and Pixar.
With all this mega-competition, Apple needs big-name players to help it catch up in the fast-growing streaming space. The LA Times further reports that Apple landed two Sony television studio veterans, Jamie Erich and Zack Van Amburg, to lead its push into original programming last year. They report to Eddy Cue, Apple’s senior vice president of Internet Software and Services.
“Since then, Apple has announced numerous TV-style projects with prominent entertainment industry names. One of its much-anticipated endeavors is Steven Spielberg’s upcoming revival of the 1980’s anthology sic-fi series Amazing Stories.
According to Bloomberg, “Less is known about Apple’s potential interest in features, an area in which Netflix is spending heavily. The company is said to be in talks with an Ireland-based cartoon studio to secure the rights to an upcoming animated movie.”
Apple-Winfrey terms are not disclosed.
“This is a shot across the bow from Apple and shows its content strategy is about to accelerate with other streaming competitors now keeping one eye open on Cupertino’s plans,” Daniel Ives, an analyst for GHH Insights said to the LA Times.
According to Ives, Apple is expected to spend about $1 billion on programming this year, and he estimates the company will spend as much as $3 billion on original content in 2019. By comparison, this year Netflix is spending $8 billion on original and licensed content.
Further, the LA Times report it is unclear what kind of programming Winfrey will produce for Apple. Both Winfrey and Apple declined to comment.
Winfrey will remain chief executive for the Oprah Winfrey Network (OWN). Discovery Communications agreed to pay $70 million last year to take a majority stake in the network. As part of Discovery-OWN deal, Winfrey agreed to remain with OWN through 2025.
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