Apple's Eddy Cue is reportedly working to shake up the company's lucrative Services business in order 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 executives in the segment, Business Insider has reported. The company has reportedly identified streaming and advertising as two areas for revenue growth, and one insider with knowledge of the situation says that Apple's ad business is now "big enough to live on its own."
As part of the restructuring, Apple vice president of Services Peter Stern will no longer handle advertising heading forward and will instead focus on video, iCloud, and other services segments. On the flip side, advertising vice president Todd Teresi is said to be taking on more responsibility. He has been reporting directly to Cue since the start of 2022.
As part of its streaming strategy, Apple is also working on expanding its sports portfolio. The company recently launched Friday Night Baseball as an offering, and is working to secure rights to the NFL Sunday Ticket.
Business Insider reports that Apple is also seeking to obtain the rights to air NBA games on its Apple TV+ platform.
Services has been a steady money maker for Apple over the years. In Q2 2022, the segment brought in $19.8 billion, up year-over-year from $17 billion.
Apple is also working on bringing more services to the table, including a potential "buy now, pay later" financial service and an Instacart-style grocery ordering service with an emphasis on nutrition.
