Apple, Oprah Winfrey Partner on Subscription Video Service --2nd Update

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 [e-mail] and Tripp Mickle at [e-mail]

(END) Dow Jones Newswires

June 15, 2018 13:56 ET (17:56 GMT)

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