Apple, Oprah Winfrey Partner on Subscription Video Service --2nd Update
June 15 2018 - 2:11PM
Dow Jones News
By Joe Flint and Tripp Mickle
Apple Inc. has formed a production partnership with Oprah
Winfrey to make programs for its planned subscription-video
service, part of the company's aggressive push into the content
business as competition for Hollywood talent escalates.
Apple has signed agreements with several major producers and
actors to make shows for its direct-to-consumer video service that
doesn't yet have a launch date but is expected to debut next year,
according to people familiar with the company's plans.
Neither Apple nor Ms. Winfrey offered any specifics about the
content she would make. In a statement, Apple said Ms. Winfrey
would "create original programs that embrace her incomparable
ability to connect with audiences around the world."
Apple is joining other tech players, led by Netflix Inc. and
Amazon.com Inc., in signing up top show creators who normally work
with traditional media companies.
Netflix has signed big deals with producers Ryan Murphy and
Shonda Rhimes valued at several hundred million dollars
combined.
Traditional media outfits have vowed to fight back. Last week,
Time Warner Inc,'s Warner Bros. shelled out $300 million to keep
prolific TV producer Greg Berlanti from jumping ship.
AT&T now owns Warner Bros., after closing its acquisition of
Time Warner on Thursday. "I have no trepidation about making sure
we maintain those relationships with the very top talent going
forward," John Stankey the AT&T executive charged with
overseeing Time Warner assets, said in an interview Friday.
Since retiring from her daytime talk show hosting duties in
2011, Ms. Winfrey has increasingly focused her efforts on content
production as well as keeping herself in front the camera as an
interviewer. She co-founded the Oprah Winfrey Network (OWN) with
Discovery Inc. in 2011. Last year, she reduced her holdings in OWN
to 25.5% from 50% but is still heavily involved in with the
network.
Ms. Winfrey has also been a contributor to the CBS news magazine
"60 Minutes" and her Harpo Productions makes the popular daytime
shows "Dr. Phil" and "Rachel Ray." Her film company made the
theatrical release "Selma."
For Apple, Ms. Winfrey is the latest big fish it has landed. In
recent months, it has struck deals with actor and producer Reese
Witherspoon, comedy star Kristen Wiig and directors J.J. Abrams and
M. Night Shyamalan. They are contributing to the dozen-plus video
projects Apple has committed to since it last year allocated $1
billion for Hollywood programming.
The iPhone maker hasn't outlined its distribution plans for the
programming or said what it may charge. Creators and agents who
have agreed to projects with Apple assume the company will put most
of the programming inside the TV app already made available in its
mobile operating system. Apple is expected to create a subscription
offering that bundles access to the programming with iCloud storage
and potentially other services like magazine subscriptions, people
familiar with the plans said.
Apple Senior Vice President Eddy Cue, who oversees services,
recently reorganized his team and gave former Time Warner Cable
executive Peter Stern responsibility for overseeing business
operations for services, people familiar with the change said. Mr.
Stern is expected to work with Jamie Erlicht and Zack Van Amburg,
who were hired last year from Sony Corp. to oversee original
programming, on crafting subscription plans for the Hollywood
content and Apple's other offerings, the people said.
Ms. Winfrey's relationship with OWN won't change as a result of
this deal, a Discovery executive said. Her agreement with the
network and Discovery runs through 2025. After initially struggling
to find traction, OWN in recent years has turned itself around and
launched several successful scripted shows including "Queen Sugar"
and "Greenleaf."
Write to Joe Flint at joe.flint@wsj.com and Tripp Mickle at
Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
June 15, 2018 13:56 ET (17:56 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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