Apple's Senior Vice President of Services Eddy Cue is working on a restructuring of services management with the goal of focusing more on streaming and advertising, or so a new report claims.
Cue sees streaming and advertising as areas where revenue growth is possible and has already begun updating the responsibilities of key executives in the services area, reported Business Insider. Peter Stern, Apple's vice president of services, is no longer in charge of advertising, giving him more time to focus on video, news, books, iCloud, Fitness+, and Apple One. Todd Teresi, a vice president of advertising at Apple, will instead take on more responsibility and has reported directly to Cue since the beginning of the year. One of the sources who spoke to Business Insider said that Apple's advertising business is now "big enough to live on its own." Apple recently acquired the rights to Friday Night Baseball after reaching an agreement with Major League Baseball, with more sports deals to follow. Apple is rumored to be working on securing the rights to the NFL's Sunday Ticket package.
Apple Services: Apple Pay to be expanded as well
NBA games are also expected to be shown on Apple TV+ at some point. Sports content would attract new viewers to Apple TV+, which Apple has been building since its launch in 2019. Compared to other streaming services, Apple still has a limited amount of original content and can't reach the same subscriber numbers as Hulu, Netflix, and Disney+. Revenue from its services has grown steadily in recent years. The Services category now includes Apple TV+, iCloud, Apple Fitness+, Apple News+, Apple Music, the App Store, Apple Care+, Apple Arcade, Apple Pay, and more. In the second quarter of 2022, Apple Services generated $19.8 billion, compared to $17 billion in the same quarter last year. In addition to focusing on streaming and advertising, Apple also plans to launch new services. There are rumors of a hardware subscription service. Apple Pay is also expected to be expanded to include a "buy now, pay later" feature. (Photo by DenPhoto / Bigstockphoto)
