Eddy Cue, Apple’s SVP of Services, is reportedly looking to restructure the company’s offerings to make a more significant push in streaming and advertising.
Apple’s services business has been growing rapidly over the last few years. It currently boasts more than 825 million paid subscribers.
Eddy Cue wants to tap full potential of Apple’s Services
Still, according to a Business Insider report, Cue thinks there’s room for “>further growth in streaming and advertising. He reassigned advertising to Todd Teresi, an advertising vice president at Apple, at the beginning of this year. Teresi once led the company’s iAd mobile network, which launched in 2010. However, Apple shuttered the business in 2016 after it failed to make a dent in the mobile advertising space.
Peter Stern, the VP of services, previously handled advertising. He also looks after video, news, books, iCloud, Fitness+ and Apple One. The move will provide him with more time to focus on other rapidly growing avenues.
Apple’s Services business consists of the App Store, Apple Music, iCloud, Apple One, Apple Pay, Apple News, Apple Care+, Apple TV+ and more. Combined, it reported revenue of $19.8 billion last quarter — up 17% year over year.
Apple’s advertising business is projected to grow even more this year
As for the advertising business, a source claimed that it is now “big enough to live on its own.” Research firm Omdia’s analyst Matthew Bailey thinks the search business registered a revenue growth of 238% in 2021 to reach $3.7 billion compared to 2020. The analyst expects revenue to reach $5.5 billion this year.
Apple could try to acquire streaming rights for NFL and NBA games
A couple of months ago, Apple announced that it had secured the rights to stream Major League Baseball games for a new show called Friday Night Baseball. The report states that the company could try to acquire broadcasting rights for NFL Sunday Ticket and the NBA when they come up for renewal. This could help the company acquire new Apple TV+ subscribers.
The move would be important since the content library of Apple’s streaming platform is not as expansive as the competition.