Apple restructuring Services team to focus more on streaming and advertising businesses

Apple restructuring Services team to focus more on streaming and advertising businesses

May 9, 2022 0 By Filipe Espósito



Apple is not exactly a service company since its main revenue still comes from hardware, but subscriptions have become a vital part of the company. They are now bigger than products like the Mac and iPad. Still, the company seems to want to take its service category even further by pushing streaming platforms and advertisements.

According to a Business Insider report based on sources familiar with the matter, Apple wants to restructure its Services team to make the category even more profitable. Eddy Cue, Apple’s senior vice president of services, has already been putting some changes in place to boost the company’s services.

Peter Stern, VP of services at Apple, was also responsible for “advertising” – as he described it in his LinkedIn profile. However, Cue has demanded that Stern be fully dedicated to services as Apple One, which means Todd Teresi will assume responsibility for Apple’s advertising business.

These changes come as Apple’s services have seen record profits and subscriber numbers. Apple’s sole source of advertising, which is App Store Search Ads, grew 238% to $3.7 billion in 2021 and are forecast to reach $5.5 billion by the end of this year. The report claims that changes to Apple’s privacy policies, which include App Tracking Transparency, have led more developers to spend on App Store Search Ads.

Still, there’s more to come. Business Insider corroborates rumors that Apple has been negotiating to bring NFL games to Apple TV+, which would potentially attract even more subscribers to the platform. The company could monetize NFL content by offering it with advertisements or through an additional sports bundle.

Earlier this year, Apple officially teamed up with MLB to bring Friday Night Baseball exclusively to Apple TV+. However, details about when customers will see these changes in practice remain unclear.

Read also:

Apple services subscribers grow 25% to new high of 825 million
Gurman: Apple has explored ‘Instacart-like service’ with Health app integration

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author

Filipe Espósito

Filipe Espósito is a Brazilian tech Journalist who started covering Apple news on iHelp BR with some exclusive scoops — including the reveal of the new Apple Watch Series 5 models in titanium and ceramic. He joined 9to5Mac to share even more tech news around the world.

You can read the original article here —> [ Read More ]

Sponsored Posts

February 6, 2022 0

NordLayer — more than a business VPN

By Sponsored

Cybersecurity threats have become vast and more sophisticated. The rate of malware attacks and malicious activity counts within seconds despite the size or sector the organization belongs to — no...


Don't miss a beat!!

We’d love to keep you updated with the latest tech news from across the internet!

Don't worry, we don’t spam!