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Can Peloton Be More Than Just a Fitness?



Peloton has to start treading the masses, so it's not just spinning wheels.

That's what brand experts and media analysts say that the home-based fitness company that sells exercise bikes and treadmills with subscription-based workouts for up to $ 2,000 must – do so if it wants long-term staying power when the company is published.

“It is first and foremost a product of the upper class. You pay a few thousand for a bike and the services, but what are the ways they attract a more mass audience? "Chuck Welch, co-founder of strategy consultancy Rupture Studio, which has worked with companies such as Nike and Pepsi, told Fox Business. “How should they attract people to the brand who may not be able to afford a bicycle? It may be what they are trying to find out. "

The New York City-based company, founded in 2012 with more than 1.4 million members who paid $ 39 a month on top of equipment costs for live-stream workouts at home, filed for its original offer Tuesday. However, the unprofitable company lost $ 196 million on sales of $ 915 million over the 12 months ended June 30, according to the filing with the US Securities and Exchange Commission.

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Despite for losses, the startup has attracted a cult-like Internet that includes star-studded likes Sofia Vergara, Richard Branson and Jimmy Fallon, calling itself "the largest interactive training platform in the world," but some have criticized the company for being an overpriced desktop bike with a screen attached , while others have complained about having problems with the speakers. Peloton did not immediately return a request for comment.

Pelo tons seem to have high hopes for the future. The filing referred to the startup as "a technology company, a media company, an interactive software company, a product design firm, a social affiliate company, a DTC retail company, an appliance company and a logistics company." But media analysts say in order to scale it, it needs to expand beyond fitness, and aggressively take a more lifestyle approach.

"They're not going to get a mass audience like a Netflix or a Hulu unless they expand the horizon and start doing things that target the masses beyond fitness," said Marc Berman, chief editor of Programming Insider, explaining: " Not only can it be exclusive fitness products; maybe it's food that targets healthy living; maybe travel – expanding the horizon, if you're just one thing, you're completely limiting yourself. "

Sixty percent of people spend between $ 26 and $ 175 per month on fitness, according to a survey from ASweatLife.com. And last year, 21% of respondents said they spent money on digital exercise programs, twice the number of people compared to 2016, according to the survey, showing growing demand.

And some users have sung their praises, mostly to be practical. New Jersey native Devon Bernaiche, 28, quit her $ 75-month YMCA gym because she said she couldn't handle it between work and stay home for her kids. Instead, she eliminated $ 2,245 for a Peloton bike, plus $ 75 a month for a subscription that includes access to streaming yoga classes on days she doesn't want to spin. She says she lost 50 pounds since she bought it.

"Cucumber for me was too much because when I got off and went off, it reduced my children's dinner and sleeping time. With Peloton, I can only use it when they're in bed," Bernaiche said, adding that having the bike at home is a huge reminder of how much money she paid for it, so she gymnasts to use it.

"I feel more guilty about skipping and training," she said. 19659002] For those who do not want to use the thousands of exercise equipment they may be bored with, Peloton launched a subscription-based app called Peloton Digital last year, which includes live and recorded video and audio exercises such as yoga, outdoor running and strength training for $ 19.49 per month For comparison, a Planet Fitness workout is $ 10 a month.

The streaming fitness market is becoming more competitive as several in-store gyms and gyms sprint on the opportunity to attract a home audience. Equinox previously announced the This month it launched a new desktop bike for its SoulCycle exercise brand with an attached display and corresponding exercise program. Equinox will also sell its own treadmill Woodway with streaming on-demand workouts. Both will directly compete with Peloton.

Welch says Peloton must think outside the wheelhouse when it goes public. Right now, the content is primarily aimed at current users. Products that tend to be viewed as luxury items, not necessities. I think they will try to be more content driven, expand the retail network and advertise sponsorships and hire more influencers. ”

Some analysts are skeptical that Peloton will be anything but a fad.

“Peloton inaugurated an interactive internet-connected exercise device. It's a product, not a business model, "said Ted Bauman, a senior research analyst and economist at Banyan Hill Publishing, adding:" I wouldn't touch it with a 10-foot bar. ”

The increasingly saturated market may force some companies to lower their price points.

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"We'll see if competitors come in and undermine them [Peloton] on price," Welch says. "They're going to have pressure, let's wait and see."


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