With Oprah Winfrey inking a major multi-year deal with Apple to create original programs we believe this is just the “tip of the spear” for Cook & Co. launching an aggressive video content strategy over the next 12 to 18 months. While Apple has been hesitant to get into the content arms race over the past few years (to its fault in our opinion) we believe the company will now be stepping up its game and resources behind acquiring original content heading into 2019 and potentially launching its own streaming service by late 2019 after years of debating this decision. With the company spending less than $1 billion on its content strategy today, we estimate Apple could ramp up its spending to between $3 billion and possibly up to $4 billion in 2019, which is still well below that of Amazon (~$6 billion next year) and Netflix (likely ~$10 billion next year) in this streaming content arms race. Taking a step back, with the AT&T/Time Warner deal now in the books and the Comcast/Disney battle royale for 21st Century Fox assets front and center, now is the time for Cupertino to pave the way for a standalone subscription service to launch by late 2019 in our estimation as the content strategy could represent a key growth vehicle for further monetizing the all-important software/services, which we believe is key to Apple’s growth prospects (and expanded multiple) over the coming years. We believe inking an A+ Hollywood name/talent like Oprah speaks to the type of content and resources Apple is willing to spend as it significantly ramps its streaming ambitions. This is an aggressive move that speaks to Apple and Cook’s serious focus on adding content to its distribution over the coming 12 to 18 months. Oprah and other major deals on the horizon are the first step in this Trojan horse content strategy set to be unveiled over the coming year as this latest deal is a “shot across the bow” from Apple and shows its content strategy is about to accelerate into another gear with other streaming competitors now keeping one eye open on Cupertino’s plans moving forward. In a nutshell, with the key hires of Ehrlicht and Van Amburg from Sony and now with a stepped-up content strategy and resources behind it, we believe Apple has finally begun its long awaited aggressive march down the content highway, which is a positive for the name in our opinion. We maintain our Highly Attractive rating and $200 price target.