Eddy Cue, Apple’s senior vice president of services, is considering restructuring Apple’s services business to redirect more attention to streaming and advertising, according to a report from Well-informed person. In its most recent earnings reportApple said its services, which include the App Store, Apple Pay, Apple News, Apple Music, Apple TV Plus and iCloud, added 825 million subscribers and gained $19.8 billion in revenue.
As part of the reorganization, Cue reportedly removed Peter Stern, Apple’s current vice president of services, from advertising to focus solely on his services division. Sources close to the situation said Well-informed person That Todd Teresi, Apple’s vice president of advertising platforms, has absorbed previous advertising responsibilities from Stern and now reports directly to Cue after being promoted earlier this year. “The Services portfolio is too big now, with many other segments growing,” a source said. Well-informed person. “The advertising business is big enough to live on its own.”
of Apple App Tracking Transparency Policy, which it implemented last year, could have been a factor in the growth of Apple’s advertising business. The policy requires developers to ask users for permission to track various types of data; opting out prevents apps from using advertising tools to deliver targeted ads.
What Well-informed person gradesAnalysts report that the policy has pushed companies to spend more of their budget on App Store search ads rather than other products. It included data from research firm Omdia that said Apple grew its ad business by 238 percent to $3.7 billion in 2021 compared to 2020 and predicts the company will earn $5.5 billion from ads alone this year.
Apple even offers advertising space during its Live Friday Night Baseball Streamsand Apple may want to further expand its sports footprint. Well-informed person mentioned that Apple may try to get the streaming rights to the NBA, and there has been a report of Disk demanding the acquisition of NFL Sunday Ticket Broadcast it’s a “done deal”. Apple did not immediately respond to the edgecomment request.