Apple revamps services team to focus on lucrative streaming and advertising markets

The value of the video-streaming market is expected to grow to about $82.4bn in 2022

Apple acquired the rights to Major League Baseball's 'Friday Night Baseball' programme as it seeks to secure more sports deals. AFP

Apple is restructuring its services business to further tap into high-revenue segments such as streaming and advertising, the latter of which is now “big enough to live on its own”, according to a media report.

The world's most valuable company has restructured the team to focus on the new strategy, which will be headed by Eddy Cue, senior vice president for services, Business Insider reported on Tuesday, citing sources.

Revenue generated by Apple's services division — which groups Apple Pay, iCloud, Apple Music, Apple TV+, Apple News, AppleCare, advertising and the App Store — surged by 17.3 per cent annually to $19.8 billion in the second quarter, the company said in its quarterly report last month.

The revenue growth, a quarterly record for services, contributed about 20.4 per cent to Apple's overall sales, the company said. Apple does not break down revenue for streaming and advertising separately in its financial reports.

Apple's overall revenue in the three-month period through to the end of March grew 9 per cent annually to $97.3bn, another record for the quarter.

The video-streaming market — which, like other mobile-based entertainment segments, gained ground at the onset of the Covid-19 pandemic in 2020 — is expected to reach about $82.4bn in 2022 and grow at a compound annual rate of about 9 per cent to 2026, resulting in a market volume of about $116bn, according to Statista data.