According to a new report from Business Insider, Apple's senior vice president of services is working to restructure services management with the aim of focusing more on streaming and advertising.
He sees streaming and advertising as areas where there is opportunity for revenue growth, and he has already begun updating the responsibilities of key services executives. Apple's vice president of services is no longer handling advertising, giving him more time to focus on video, news, books, and Apple One.
Todd Teresi, an advertising vice president at Apple, has been reporting directly to Cue since the beginning of the year. One of the sources who spoke to Business Insider said that Apple's ad business is big enough to live on its own.
Apple recently acquired the rights to Friday Night Baseball after establishing a deal with Major League Baseball, and part of its effort to expand streaming services will include additional sports deals. Business Insider says that Apple wants to get the rights to air NBA games, and that there are rumors that Apple is working to get the rights to the Sunday Ticket package.
Apple has been working to build up new viewers for Apple TV+ since it was launched in 2019. Apple has a limited amount of original content compared to other streaming services, and it is not able to draw the same number of subscribers.
Services revenue has been growing steadily over the course of the last several years, and now includes Apple TV+, Apple Fitness+, and Apple News.
In the second quarter of 2022, services brought in $19.8 billion, up from $17 billion in the year-ago quarter.
Along with new services, Apple has plans to focus on streaming and advertising. There are rumors that Apple Pay will include a buy now, pay later feature. According to Mark Gurman, an Apple service that would integrate with nutrition data in the Health app was explored over the weekend.
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