A few years ago, Peloton was one of the fastest growing fitness companies in the world. Things went south fast, though, and revenue has plummeted over the past year.
There is a real risk that it could go bust before this happens. This is why it may be wise for Peloton to branch and expand its offering to attract more users. Indeed, it could learn from the diversity of the entertainment industry and mirror the way its brands appeal to consumers.
Peloton CEO Promises to Arrest the Slump
According to Bicycle Retailer, Peloton posted a net loss of $1.26 billion in 2022. Part of the reason for this was to do with having to recall millions of seat posts, but the damage has been done and now the brand is scrambling to recover.
Peloton has been around since 2012, but it enjoyed a surge in use around 2020 and 2021. At this point, the company’s market cap was at $50 billion, and it looked like the only way was up. However, there were a couple of roadblocks for Peloton in 2022, and it now faces an uphill battle to get back to where it once was at the pinnacle of the fitness industry.
Peloton now has a new CEO called Barry McCarthy, according to Insider. The former chief financial officer for Spotify and Netflix will bring his expertise from the entertainment industry and hopefully change Peloton’s fortunes. He has already committed to arresting the recent slump and has announced a few ideas that could help get the brand back on the upward trajectory. These have included a new rowing machine and a deal with Amazon to sell products with the global retailer.
Lessons to Learn from Bustling Online Entertainment Industry
There is a chance that McCarthy’s Netflix experience could influence Peloton to go in a few new directions with its on-screen offerings. Up to now, the company has made a vast amount of its revenue through subscriptions to its wide array of classes from a diverse range of coaches. There’s no doubt that these will stay, but the screens could start to integrate some entertainment options as well.
Judging by the modern entertainment industry, users are desperate for a broad range of options. This was pioneered by Netflix, which has everything from blockbuster films to niche documentary series. Online casinos have mirrored this, with sites like Mr Q Megaways casino offering slots in countless genres. There are adventure games like Temple Tumble, hobby-themed titles like Fishin Frenzy, and film-based reel spinners like Ted.
It would make sense to bring in some more entertainment options alongside the standard classes on the Peloton app. Some users want to watch films or play games while they ride or run, but they don’t currently have enough choice. If these options are introduced, more people may sign up for the service.
Despite recent setbacks, Peloton still stands a good chance of getting back to its past highs. The new CEO will bring his experience of the entertainment industry and could potentially expand Peloton’s offerings.
