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Eddy Cue on Apple’s Sports Strategy

In a 3,900-word GQ Sports profile titled “Inside Apple’s Plan to Change the Way We Watch Sports,” here’s Sam Schube:

“The man leading Apple’s push into the wild, lucrative world of live sports broadcasting is Eddy Cue. Cue has worked at Apple since 1989, and cuts an interesting figure at a company defined by its low-key, minimalist culture. He is plainspoken, and quick to joke. He is also an enormous sports fan, frequently popping up at the biggest games on the planet. Perhaps most importantly, he is the guy Apple has tasked with an increasingly important piece of its future: as the senior vice president of the company’s services division, his portfolio includes just about everything Apple sells that isn’t a piece of hardware…

One critical part of Cue's portfolio is Apple TV+, the company’s entrant in the streaming wars. And in this war, sports have emerged as a vital weapon. In our ever-more-fractured entertainment landscape, live sports represent perhaps the last best way for distributors—both tech companies like Apple and cable stalwarts like ESPN—to convene a large, reliable audience. Per Nielsen, 94 of the 100 most-watched US TV broadcasts in 2022 were sporting events, with NFL accounting for 82 of those, and 19 of the top 20.

It is Cue’s belief that sports represents an enormous opportunity for the company—and that, with a few tried-and-true Apple tweaks, the right sport can be made to feel more like a rounded-edges, design-forward Apple product. ‘We spend a lot of money, a lot of time on finding the best unscripted drama in the world. That's what we try to create in some of our shows that we do for TV+,’ he told me in the first of a few conversations this spring and summer. ‘Sports is that in spades. It's the greatest unscripted drama there is.’”

GQ offers the most in-depth look to date into Apple’s thinking regarding live sports programming. Much of this is due to the writer relying on Apple’s $2.5B 10-year deal with MLS (U.S. soccer) for examples of how Apple is approaching sports. The article, somewhat inadvertently, also raised some warning signs regarding Apple’s sports play. We will get to those shortly.

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We kick things off with Neil’s thoughts on Mark Zuckerberg announcing another massive round of Meta layoffs. The discussion goes over Zuckerberg’s efficiency plans. We conclude with an examination of how Apple has been able to avoid significant layoffs.

Happy Wednesday.

One quick follow-up to yesterday’s discussion about Tim Cook and mixed reality headsets. The expectation that Cook will say yes to a product that goes against Apple’s user-first ideals is misplaced. Recall comments that Cook made last year about the importance of keeping humanity at the center of AR headsets. Cook was answering a question about AR headsets succeeding in the consumer market. Here's Cook:

"I am incredibly excited about AR as you may know. And the critical thing in any technology, including AR, is putting humanity at the center of it. And that is what we focus on every day."

The "humanity at the center" wording was a subtle reference to Apple addressing long-held concerns found with a face headset.

Let's jump into today's update.

Meta Announces Another Massive Round of Layoffs

Here's the WSJ:

“Meta Platforms Inc. said it would cut roughly 10,000 over the coming months, the Facebook parent’s second wave of mass layoffs in what it says is an effort to be more efficient in a difficult economy.

Meta Chief Executive Mark Zuckerberg said in an email to staff on Tuesday that the company would in the coming months conduct multiple rounds of job cuts, as well as cancel some projects and reduce hiring rates as part of what he has dubbed the ‘year of efficiency.’

Company recruitment teams will be cut first, followed by restructuring and layoffs in its technology groups in late April, Mr. Zuckerberg said. Business teams will face layoffs in May, he added. The company will also stop hiring for about 5,000 open positions.

Mr. Zuckerberg said his company must cope with a longer term change in the economy, marked by the end of low interest rates, growing geopolitical tensions and costly new regulations.

‘At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years,’ Mr. Zuckerberg wrote. ‘Given this outlook, we’ll need to operate more efficiently than our previous headcount reduction to ensure success.’

Meta said in a securities filing Tuesday that it expects to lower its annual expenses by roughly $3 billion from an estimated range it gave on Feb. 1. It now expects to spend a total of $86 billion to $92 billion this year, including the costs of its layoffs and restructuring, which it said could total $3 billion to $5 billion.”

The 10,000 layoffs are in addition to the 11,000 layoffs that Meta announced in late 2022. This would mean Zuckerberg will have cut Meta’s workforce by 20% within just a few months (the job postings being kept open are excluded from the 20%). While it is true that Meta added significantly to its ranks from 2020 to 2022, to cut 20% of staff is a staggering percentage that should draw into question a number of key assumptions that have been found with Meta and Big Tech.

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Eddy Cue on Apple’s Sports Strategy, Apple’s Challenges With Sports, Meta Layoffs Hit Custom Silicon Unit

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Meta Announces Another Massive Round of Layoffs, Zuckerberg Discovers Efficiency, How Apple Avoided Significant Layoffs

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