The Oprah Effect: Apple, Winfrey Sign Multiyear Programming Deal

Billionaire media mogul Oprah Winfrey is credited in some part for helping Weight Watchers International, Inc. WTW stock outperform the broader market in her roles of brand ambassador, large shareholder and board member.

Apple Inc. AAPL is clearly hoping the same effect will help boost its stock valuation north of the milestone $1-trillion mark.

What Happened

Apple and Winfrey reached a multiyear deal for original programming, CNN reported Friday afternoon. The iPhone maker appears to be eyeing a major push in the streaming video space, although it's unclear what the extent of Winfrey's on-screen presence will be. The company merely confirmed Winfrey's "projects will be released as part of a lineup of original content from Apple."

Why It's Important

Apple already has agreements with Hollywood stars for original content, including Reese Witherspoon, Steven Spielberg, Octavia Spencer and Kevin Durant, according to CNN. Winfrey adds a "new level of star power" to the list given her loyal followers and status as a cultural force.

Apple may need an iconic name like Winfrey to compete in the ultracompetitive streaming video space, especially after Netflix, Inc. NFLX signed former President Barack Obama and his wife Michelle to a multiyear deal.

What's Next

Apple's agreement with Winfrey was foreshadowed months ago when Senior Vice President Eddy Cue told CNN that Apple doesn't "really know how to create shows." By signing Winfrey, Cupertino will have a seasoned television vet in its roster.

Related Links:

Citron Says Netflix Bulls Need A 'Reality Check'

Has Apple Been Planning A Streaming Service Since Before Tim Cook?

Photo by Bill Ebbesen via Wikimedia.