Great piece, thank you for sharing! What about VR as an at home competitor? Fitness is deeply apart of my life and a VR game should not make me exhausted, but I constantly find myself on the floor sweating after a session. It is to the point that I substitute VR for high intensity cardio some days. With that being said do you see VR as something of a risk or a potential opportunity for Peloton?
Hey Nathan, thanks for reading. I think VR is quite interesting and has great potential over the next decades.
I have seen some VR fitness games and I have even tried a few. The most serious drawback is that you need to wear a headset while working out and sweating, which can be quite annoying.; moreover, fitness requires dedicated hardware, those are the main reasons that led me to believe that VR will not be a serious competitor over the next few years. But as you point out VR sometimes combines fitness and gaming and I will be paying attention to the industry over the next decades.
Here you have an interesting interview from the founder of Supernatural (VR fitness app) :
Good read. I was skeptical due to the high valuation but recently signed up for the digital service. I am impressed by the quality of the content and the engagment metrics that you point out. It has given my old bike trainer(by Tacx which was acquired by Garmin) a new life and can certainly envision buying their hardware if it keeps me engaged.
I think the thesis was not bad qualitatively. Drank too much of the Kool aid and vastly overestimated management quality + execution. Sold my full position when they first lied shareholders ( CFO told no need to raise , and raised a few weeks later )
Still think the franchise quality is fantastic though ( existing members retention is very healthy) but at this point it is a turnaround
Plan to revisit this article every couple months / years. Reflecting on mistakes is the best way to progress
Great piece, thank you for sharing! What about VR as an at home competitor? Fitness is deeply apart of my life and a VR game should not make me exhausted, but I constantly find myself on the floor sweating after a session. It is to the point that I substitute VR for high intensity cardio some days. With that being said do you see VR as something of a risk or a potential opportunity for Peloton?
Thanks again for putting this together!
Blind Squirreljust now
Hey Nathan, thanks for reading. I think VR is quite interesting and has great potential over the next decades.
I have seen some VR fitness games and I have even tried a few. The most serious drawback is that you need to wear a headset while working out and sweating, which can be quite annoying.; moreover, fitness requires dedicated hardware, those are the main reasons that led me to believe that VR will not be a serious competitor over the next few years. But as you point out VR sometimes combines fitness and gaming and I will be paying attention to the industry over the next decades.
Here you have an interesting interview from the founder of Supernatural (VR fitness app) :
https://www.theverge.com/22379859/vr-virtual-reality-fitness-work-out-supernatural-chris-milk-interview
Good read. I was skeptical due to the high valuation but recently signed up for the digital service. I am impressed by the quality of the content and the engagment metrics that you point out. It has given my old bike trainer(by Tacx which was acquired by Garmin) a new life and can certainly envision buying their hardware if it keeps me engaged.
That's fantastic , as you point out it all comes down to keeping users engaged
Thanks for reading !
Interesting to revisit this now a year later after the stock is down 85%+
I think the thesis was not bad qualitatively. Drank too much of the Kool aid and vastly overestimated management quality + execution. Sold my full position when they first lied shareholders ( CFO told no need to raise , and raised a few weeks later )
Still think the franchise quality is fantastic though ( existing members retention is very healthy) but at this point it is a turnaround
Plan to revisit this article every couple months / years. Reflecting on mistakes is the best way to progress
Glad it helped you