Eddy Cue, Apple’s Senior Vice President of Services, wants to restructure the services sector of the Cupertino multinational (a sector that, alone, is worth 76 billion dollars), pushing more towards profitable areas such as streaming, in particular sports and related advertising.
To report it is Business Insider explaining that Cue is already pushing other subjects in this direction. Apple’s service-related businesses include: App Store, Apple Music, iCloud, AppleCare, Apple Pay, Apple News, advertising and Apple TV +.
Apple’s services grew 17% in the last quarter and globally boast 82 million paying subscribers. This sector alone would generate a turnover almost equal to the activity of a company listed in the Fortune 100, the ranking of the 100 largest US corporate companies measured on the basis of their turnover.
An unspecified source from Business Insider who allegedly spoke to Cue reports that the executive is trying to kickstart growth by reorganizing his management structure, pushing for more sectors such as streaming and advertising.
Apple won the Academy Award for Best Picture with CODA and recently started offering on Apple TV + “Friday Night Baseball”: a double weekly appointment with exclusive pre-match and post-match live programs in eight countries, a streaming service financed by the advertising.
Cue has already changed the framework of the guiding responsibilities of the sports portfolio by naming Peter Stern, as vice president responsible for services. Apple apparently intends to make a series of moves to grab the broadcasting rights for sporting events such as Sunday Ticket (a weekly package featuring regular season NFL games) and the NBA season.
Stern, who joined Apple in 2016, previously led Time Warner Cable, a company that offered cable television, telephony and intelligent home services, and handled the broadcasting rights for Major League Baseball’s Los Angeles Dodgers.
Ed Desser, president of Desser Sports Media, ha reported a Business Insider that Apple’s situation is singular, having a relatively small Apple TV + user base, explaining that the addition of Sunday Ticket would increase the number of subscribers and monetize in areas such as revenues from sports package subscriptions and advertising revenue. .
As for the Apple TV + advertising responsibilities, the assignment would be entrusted to Todd Teresi, Apple’s vice president of advertising for over a decade, promoted earlier this year and now reporting directly to Cue. Teresi previously worked on iAd, Apple’s mobile advertising division introduced in 2010 but closed in 2016 due to numerous limitations in Cupertino’s approach that led most developers to employ competing advertising platforms.
In the last fiscal quarter, Apple posted another historic revenue record.
