Monday December 4, 2023

Peloton Rides At-Home Fitness Boom

  • Peloton’s subscribers ballooned to 1.09 million in the fourth quarter, up 113% from a year earlier.
  • CEO John Foley thinks that the company can hit 100 million subscribers in the coming quarters.
Linkedin
Copy Link
Link Copied
Link Copied

When the pandemic shut down gyms across the country, fitness enthusiasts tried to find different ways to stay active. Even as gyms have begun to reopen, a recent TD Ameritrade poll found that 59% of Americans weren’t planning to renew their gym memberships.

That has helped Peloton have a breakout quarter and also a breakout year, as it has not only started to sell more exercising equipment, but also has grown its subscription business with streaming workouts beyond its hardware offerings. 

That ballooned to 1.09 million connected fitness subscribers in the fourth quarter, up 113% from a year earlier. The company has roughly 3.1 million members in total, including those who only pay for a digital subscription. Connected fitness subscribers pay $39 per month to sync their workout classes to their Peloton equipment.

CEO John Foley thinks that the company can hit 100 million subscribers in the coming quarters as more and more people embrace the at-home fitness trend. 

But on the other hand, with Apple launching Apple Fitness+, a dedicated fitness and workout app, the tech giant is positioning itself to carve out a piece of Peloton’s subscriber base and gain market share. The launch date for Apple Fitness+, which will be $9.99 a month or $79.99 for a year, is yet to be determined.

Foley, however, welcomed Apple into the fitness streaming space. “The biggest thing I will say is it’s quite a legitimization of fitness content, to the extent the biggest company in the world, a $2 trillion company, is coming in and saying fitness content matters,” he said.

Amazon has also announced it is launching its own connected bike. Priced at $499, the company is working with fitness startup Echelon to launch its first-ever connected fitness product. However, it does not have an attached screen like Peloton’s bike.

Going forward, Foley is confident Peloton will continue to grow.

“100 million subscribers, we believe is a reasonable goal,” said Foley. “There’s close to 200 million gym-goers in the world. That’s 200 million people paying hard money, month after month, to access what we believe to be inferior fitness equipment in an inferior location.”

Linkedin
Copy Link
Link Copied
Link Copied

What to Read

LeBron-James

Would Disney's ESPN Walk Away From The NBA?

Will financial pressures impact the company's decision with a longtime partner?

Sports Apparel Giants Looking For Holiday Season Turnaround

Once-surging category enters the critical selling period mired in a slump.
Inter Miami CF forward Lionel Messi smiles as he walks on the field against the New York Red Bulls during the second half at Red Bull Arena.

The Results of Messi Mania Are In

A million people per match tuned in for Messi and Inter Miami.
Jimmy Pitaro of ESPN

Disney Explores Equity Deal With NFL and NBA for ESPN Amid Financial Challenges

With company under pressure from Wall Street, talks are heating up to sell a stake in ESPN.
podcast thumbnail mobile
Front Office Sports Today

CFP Selection Turns Heads with Controversial Selection

0:00
0:00

Featured Today

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.
Brett Favre
November 27, 2023

Favre Welfare Case Hold-Up? "AG’s Office Has Not Expressed Interest In Pursuing"

The DOJ interviewed Brett Favre in early 2020.
The future of the Pac-12 rests on a court decision.
November 24, 2023

The Pac-12 Plays Its Final Regular-Season Game. Then A Court Decides Its Fate.

The conference's future rests with a court decision.
Lane Kiffin
November 9, 2023

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin's interaction with the player behind lawsuit.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Wasserman
Multiple - USA Careers
Live Nation
Multiple - USA Careers
Saco Bay PT
Multiple - USA Careers

Peloton To Bring Live Sports To Its Fitness Devices

NBA League Pass will be available to watch on Peloton devices.
Nike's group fitness studios follow its Netflix workout streaming deal.
August 3, 2023

Nike Leans Into In-Person Fitness As Lululemon Cuts Back

With fitness classes already on Netflix, Nike now plans in-person studios.
August 10, 2023

Alternative Golf Venues Thriving ‘Off-Course’ By Attracting Younger Players

In 2022, 15.5 million people participated in off-course golf activities. 
Sponsored

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
UBS estimates that pickleball injuries have cost Americans $377 million this year.
June 27, 2023

Pickleball Injuries Could Cost U.S. Nearly $400 Million Per Year

UBS estimates that pickleball injuries have cost Americans $377 million this year.
Harry Kane joins Dak Prescott and Dustin Johnson as investors in OxeFit.
June 1, 2023

Harry Kane Invests in OxeFit, Fitness Startup Reaches $45 Million in Funding

Harry Kane joins Dak Prescott and Dustin Johnson as investors in OxeFit.
The huupe "smart" basketball hoop in a gym.
May 23, 2023

Can Basketball Hoops Become Part of the Smart Gym Ecosystem?

Huupe is selling its product to professional and college basketball teams.
Peloton is recalling 2.2. million bikes.
May 11, 2023

Peloton Recalls 2.2 Million Bikes Following Injuries

Peloton is recalling 2.2. million bikes.