Apple senior vice president of services, Eddy Cue, is working on restructuring the company’s services management team, with the intent of focusing more on streaming and advertising services, says a new report from Business Insider.
One Business Insider source who “has spoken directly to Cue,” said the senior vice president of services is considering how to unleash growth by reorganizing its management structure and pushing harder into areas like streaming and advertising.
The company picked up the best picture Oscar for its $25 million film, “CODA,” and recently began streaming ad-supported Major League Baseball coverage on Friday nights.
In the second quarter of 2022, services brought in $19.8 billion, from $17 billion in the year-ago quarter. One of the sources who spoke to Business Insider said that Apple’s ad business is now “big enough to live on its own.”
Cue is focusing on streaming and advertising as he sees them as areas where there is opportunity for revenue growth. To this end, Cue has changed the responsibilities of key services executives. Peter Stern, who is Apple’s vice president of services, is no longer handling advertising, giving him more time to focus on video, news, books, iCloud, Fitness+, and Apple One.
Todd Teresi, an advertising vice president at Apple, will instead be taking on more responsibility and has been reporting directly to Cue since the beginning of the year.
In addition to the recent acquisition of the rights to “Friday Night Baseball” from Major League Baseball, Apple is working to acquire the rights to other sports, with rumors indicating the Cupertino firm is working to secure the rights to the NFL Sunday Ticket package. The publication indicates the firm is also in discussions to air NBA games.
Apple’s services category revenue has been growing steadily over recent years. The services category includes Apple TV+, iCloud, Apple Fitness+, Apple News+, Apple Music, the App Store, Apple Care+, Apple Arcade, Apple Pay, and more.
In addition to shifting focus to streaming and advertising, Apple also has plans to introduce new services. Apple is rumored to be launching a hardware subscription service, and Apple is also expanding Apple Pay to include a buy now, pay later feature.