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Apple’s Eddy Cue is reportedly working to shake up the company’s lucrative services business to focus more on streaming and advertising.
Cue, who serves as Apple’s senior vice president of services, is already updating the responsibilities of several key segment executives, Business Intern reported. The company reportedly identified streaming and advertising as two areas of revenue growth, and an insider with knowledge of the situation said Apple’s advertising business is now “big enough to live on its own.”
As part of the restructuring, Apple’s vice president of services, Peter Stern, will no longer handle advertising in the future and will instead focus on video, iCloud and other service segments. On the other hand, the vice president of advertising, Todd Teresi, would take on more responsibility. He has reported directly to Cue since the start of 2022.
As part of its streaming strategy, Apple is also working to expand its sports portfolio. The company recently launched Friday Night Baseball as an offering and is working to secure the rights to the NFL Sunday Ticket.
Business Intern reports that Apple is also seeking the rights to broadcast NBA games on its Apple TV+ platform.
Services have been a consistent source of revenue for Apple over the years. In the second quarter of 2022, the segment grossed $19.8 billion, up year-over-year from $17 billion.