Apple Fitness+ is killing Peloton and it’s getting worse for the high-end exercise bike and treadmill company, Above Avalon’s Neil Cybart says.
Apple Fitness+ delivers studio-style workouts to iPhone, iPad, and Apple TV so users can work out anytime, anywhere. Fitness+ intelligently and seamlessly incorporates key workout metrics from Apple Watch directly to iPhone, iPad, and Apple TV alongside inspiring workout content for an unparalleled, highly personalized, immersive experience, set to motivating music from the world’s top artists.
Whether users are looking for a daily routine, want to try something new, know what they like to do, or are just getting started, Fitness+ offers workouts for everyone from a team of celebrated, charismatic, and passionate trainers who are specialists in their fields, and are inspired to coach all levels, from beginners to fitness enthusiasts. All of the workouts also include a trainer demonstrating modifications, so there’s always someone to follow, no matter a user’s ability.
Peloton originally looked to have a successful Apple-like business model: sell expensive hardware, then use that hardware to generate recurring subscription income. But Neil Cybart says in a Twitter thread that this model is already falling apart.
Peloton is in a precarious state. The # of average workouts is down, guidance remains atrocious, and the company slashed bike pricing to generate demand. Nothing seems to be working. Interest in Peloton is declining. https://t.co/JHh7lwUE9y ($) 2/x pic.twitter.com/B9UTfvuHCE
— Neil Cybart (@neilcybart) December 28, 2021
As for Peloton's strategy – it's not about selling $1,500+ bikes & treadmills. That's niche stuff. Instead, it's about using bikes & treadmills to generate buzz for its digital classes. Said another way, Peloton wants to become a health platform. https://t.co/pD3yxPLecK ($) 4/x pic.twitter.com/n5nreBYzkb
— Neil Cybart (@neilcybart) December 28, 2021
There is one big problem with Peloton’s health platform strategy. The giants (Apple, Amazon, Google, Meta) are also building their own health platforms. Apple is the clear leader with Apple Watch, Fitness/Health apps, Apple Fitness+ etc. 5/x — Neil Cybart
This leaves Peloton in a difficult spot. The 2021 holiday season was crucial for the company. Recent Google Trends data doesn't match with a company generating higher buzz to grab additional users. (The spike in search traffic in 2019 was due to a controversial Peloton ad.) 7/x pic.twitter.com/e7htsZ7VYz
— Neil Cybart (@neilcybart) December 28, 2021
Without a major change in trends in 2022, Peloton is on track to be a Fitbit 2.0 – a company unable to compete with the giants subsidizing health and fitness tracking as an ecosystem feature. 8/x
— Neil Cybart (@neilcybart) December 28, 2021
MacDailyNews Take: As we wrote back in September:
Apple Fitness+ offers a huge value, especially versus the competition. And, with an Apple One Premier plan for just $29.95/month (which can be shared with up to five other people), you get Apple Fitness+, Apple Music, Apple TV+, Apple Arcade, Apple News+, and 2TB iCloud storage!
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Sooooo, are we gonna see…. ApplePedal & ApplePace (rebranded defunct Peloton bikes & treadmills) ?
I see so many “articles” like this claiming X is a “Peloton killer.” None claim to be a “Bowflex killer,” Precor killer,” or an “Apple Fitness killer.” Tells me Peloton is still the industry leader by far. I have friends who got a free 3-month trial for Apple Fitness, used it a couple times and never used it again – even for free.
If you like Peleton, that is great. They certainly are a popular at home fitness service. And arguably it isn’t, by far imho, all Apple’s doing. It s much more likely that the significant increase in gym visits is the bigger reason for the nearly 25% decline in workout engagements. But you have your head in the sand if you think Peleton isn’t looking at increased uncertainty with both gyms going back up and the rise of services like Apple Fitness+.
Peleton loses significant money (multiple hundreds of millions). Their model was based on solid profit hardware sales ever increasing (something now in serious doubt especially as they slashed pricing) and user sub numbers and engagements. That second part isn’t without promise. Apple did hurt that somewhat with the privacy options. Either way, without the better GP of 2020 their march to profitability will get pushed out again (and again). That can’t be too many agains.
It may not be a bad idea to look at Apple model to offer a watch of their own in order to add another tier of workout methods to significantly increase subs and engagements.
Hopefully this means less advertisement of those annoying Peleton commercials on TV
Yup glad I’m not the only one put off by their pretentious urgings and imagery, a week of having to suffer those elitist patronising ads is enough to make me throw anything available at the set. Seems at best to appeal to a very narrow demographic who just love to go on in a superior manner about their uber fitness lifestyle as they offer you a beanshoot salad at a dinner party. It’s like if you don’t buy our over priced equipment and buy into our sales pitch you can never be part of the Zardoz style elite. Surely there are only so many who long term buy very expensively into using fitness and a specific brand at that, to promote their superiority and exclusivity over the rest of we mere mortals, because that’s the image they portray in their ads instead of appealing to a wider market segment. Big mistake now that they are maturing I think as by definition you are limiting growth prospects especially as others enter the market using such services as add ons.
Heh…he said “Zardoz style elite”.
Amazon will buy them and the will become AmazonFitness. You read it here first.
Ha! You may not be wrong about that — or Facebook Fitness or similar.
If Peleton gives bad or worse guidance again, takes bigger cost cutting structure steps, and restates profitability target date? This will put Peleton in the buy out danger zone. Would a nationwide gym chain consider buying them to move into a home fitness-go to the gym hybrid model?
Sooo….Peleton’s suffering from a bad business cycle??
In need of some tips contact fitgain for that
Peloton is the ultimate home workout machine. It combines an exercise bike, a treadmill, and free weights into one package so you can get all your sweat on at once. Peloton has been around for years and it is categorized as a high-end fitness machine due to its impressive features such as a large screen that displays workout stats and resistance controls for each station.
The fitness app Peloton offers both traditional stationary cycling classes and a variety of yoga sessions. This combination makes it appealing to a wide range of users who want a low-tech workout that allows them to do it at home or on the road.
Peloton is a revolutionizing fitness company that offers live-streaming indoor cycling classes. It has been called one of the “Most Innovative Companies in Fitness” by Forbes and its classes are offered on a subscription basis. In 2017, Peloton opened its own studio in New York City, which features a large indoor cycling room with built-in cameras to broadcast your workout.
Apple Fitness+ is killing Peloton and it’s getting worse for the high-end exercise bike and treadmill company, Above Avalon’s Neil Cybart says. I bought one for the whole family.