What it is: Apple signed a deal with Oprah Winfrey to bring her content to Apple products.
Oprah Winfrey is a powerful woman who can create content in video and books. That’s why Apple recently signed a deal to access any future content Oprah creates or acquires the right to. That could mean future Oprah TV shows or movies could appear on Apple TV and future Oprah books could appear on Apple’s bookstore.
Apple has been aggressively pursuing original content for Apple TV because without it, Apple TV is just a commodity, offering the same thing that everyone else offers. Commodity markets are the least profitable markets. Just witness the android smartphone market where Samsung makes most of the money and all other Android device makers lose money. Making products that lose money is simply not sustainable in the long run.
Without original content, Apple TV offered little to attract customers. Now with more Hollywood deals including the latest with Oprah Winfrey, Apple can differentiate themselves from their rivals. Just as Netflix and Hulu have created original TV shows, so does Apple TV need original content that Oprah can provide. Any content created or endorsed by Oprah will immediately attract a huge following simply based on her name alone. Most likely any content endorsed by Oprah will be decent but the quality is far less important than Oprah’s name attached to it because Oprah’s name and following will insure that her content will be widely publicized and viewed.
Apple may be late to the original content market that Netflix and Amazon helped pioneer, but it has the money to stay in the market and outbid rivals for original content. This latest deal with Oprah will simply help Apple TV get started and compete against rivals. Now we just have to wait and see how good Oprah’s content really might be.