Apple isn’t exactly a services company as its main revenue still comes from hardware, but subscriptions have become a vital part of the company. Now they are bigger than products like Mac and iPad. However, the company seems to want to push its service category even further by pushing streaming platforms and ads.
According to a Business Insider report based on people familiar with the matter, Apple wants to restructure its service team to make the category even more profitable. Eddie Cue, Apple’s senior vice president of services, has already made some changes to improve the company’s services.
Peter Stern, Apple’s VP of Services, was also in charge of “advertising,” as he described it on his LinkedIn profile. However, Q demanded that Stern commit himself fully to Apple One services, meaning that Todd Terezi would take charge of Apple’s advertising business.
These changes came as Apple’s services posted record revenue and subscriber numbers. Apple’s sole source of advertising, namely App Store search advertising, grew 238% to $3.7 billion in 2021 and is projected to reach $5.5 billion by the end of this year. The report claims that changes to Apple’s privacy policy that include transparency in app tracking have resulted in more developers spending money on App Store search ads.
However, that’s not all. Business Insider confirms rumors that Apple is in talks to bring NFL games to Apple TV+, potentially bringing even more subscribers to the platform. The company could monetize NFL content by offering it with ads or with an optional sports package.
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Earlier this year, Apple officially partnered with MLB to bring Friday Night Baseball exclusively to Apple TV+. However, details about when customers will see these changes in practice remain unclear.
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