Eddy Cue, Apple’s senior vice president of services, has begun restructuring the Cupertino-based company’s service team. The senior VP planned to refocus the service team to do more streaming and advertising work.
Eddy Cue Believes There Will Be More Earnings from Streaming and Advertising
Business Insider reported that Cue believed Apple could achieve more revenue growth from streaming and advertising. Cue has started updating the duties and responsibilities of some executives of the Apple Services team. For instance, Apple’s vice president of services, Peter Stern, now focuses more on video, books, news, iCloud, Fitness+, and Apple One. He no longer handles advertising.
Taking Stern’s advertising work will be Todd Teresi, an advertising vice president at Apple. He has started reporting directly to Eddy Cue since the start of 2022. Additionally, the report said that Apple’s ad business is now “big enough to live on its own.”
Apple’s Streaming Business Grows Steadily
Apple’s recent success in the streaming business was highlighted by the best picture award picked up by Apple TV+’s original movie, CODA. Apple TV+ also started streaming ad-supported Major League Baseball coverage every Friday. Apple also plans to expand its streaming service by adding other sports deals. Rumors have it that Apple might secure the rights to stream NFL’s Sunday Ticket. The report also mentioned Apple getting streaming rights to NBA games.
Ed Draser, president of sports TV consultancy Desser Sports Media said that Apple could monetize sports rights through new subscribers, additional subscriber revenues through add-on sports packages, and advertising revenue.
The unique situation with Apple is that it has a relatively small base for Apple TV+. The addition of Sunday Ticket would allow them to increase their base subscription level, a metric in the business known as lift.
Apple Services Continue to Grow
In a recent earnings call, Apple reported that its Services business grew 17% to $19.8 billion in its last quarter. Additionally, paid global subscribers have grown to 825 million. The Apple Services Team manages the App Store, Apple Music, iCloud, AppleCare, Apple Pay, Apple News, advertising, and Apple TV+.
Aside from the growing Apple Services business, the Cupertino company also plans to venture into other business undertakings. These include a hardware subscription service and a Buy Now, Pay Later scheme through Apple Pay.