The digitization and technological advances in fitness are not a new trend. However, COVID-19 has without a doubt accelerated how, where, and what we're using to stay in shape. It has also helped drive some established players to new heights, while also creating opportunities for new entrants.
Personally, I'm a fan of Peloton Digital and after starting to use the app, I can't imagine life without it. I've been thoroughly pleased with the user experience, breadth of content available, and accessible price point - particularly as it relates to not needing a large piece of equipment in my house in order to take advantage of much of what the app has to offer.
Two recent announcements about Amazon and Apple entering and deepening their work in the fitness space respectively led me to ask myself: who will win in the digital fitness streaming wars?
Amazon's entry into fitness is centered on the Prime Bike, a co-branded bike created with established fitness brand Echelon. Their goal was to create a connected fitness product that would retail at a more accessible price point of $500. At this time it is the only connected fitness product created by Amazon. Similar to Peloton, Echelon features a library of streaming fitness content. On top of the Prime Bike, Echelon's product line features several additional stationary bikes, rowers, and mirror devices. The partnership between Amazon and Echelon reinforces that Amazon is exploring a larger role in at-home fitness beyond the gear they sell under the AmazonBasics line.
Apple's recent expansion in fitness includes both improved Apple Watch capabilities as well as the launch of AppleFitness+, a premium library of streaming fitness content. The revamped Apple Watch can now measure blood oxygen levels, which the company says is an indicator of overall wellness. For the content side of the expansion, users can subscribe to AppleFitness+ to access a library of fitness content $9.99 a month. While Apple products have been tracking fitness and health for some time now, this move expands their presence in fitness, potentially chipping away at Peloton's audience.
This comes at a time when Peloton was enjoying a major surge in customers, their first profit, and unprecedented demand for the product. Peloton CEO John Foley said, "The biggest thing I will say is it’s quite a legitimization of fitness content, to the extent the biggest company in the word, a $2 trillion company, is coming in and saying fitness content matters. It’s meaningful enough for Apple.”
Among Peloton's competitive advantages are its passionate community of followers. I believe this will continue to serve the company well as more fitness, tech, and consumer brands work to take a piece of the fitness industry pie. Apple's integration in fitness is surely a competitive threat, but it's unclear if they'll be able to replicate the passionate community that surrounds Peloton.
What do you think? How has the current environment changed your fitness behavior? Which brand do you hope to see come out on top?
Sources:
- https://www.wsj.com/articles/apple-event-2020-iphone-watch-ipad-mac-ios-11600162200
- https://www.nbcnews.com/shopping/fitness/amazon-prime-echelon-exercise-stationary-bike-n1240627
- https://www.cnbc.com/2020/09/15/peloton-ceo-on-apple-launching-workouts-a-legitimization-of-fitness-content.html
- https://www.cnn.com/2020/09/22/tech/amazon-prime-bike-peloton/index.html
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