Apple announced during its Time Flies event that it's launching a new video workout subscription service called Fitness+. The service will offer workout videos from across ten different exercise types — from yoga to running and cycling — taught by professional trainers. With an Apple Watch, live metrics are overlaid on top of the video so you can see how well you're exerting yourself.
Videos can be streamed from an Apple TV, iPhone, or iPad, so you can watch classes at home or on a treadmill at the gym. Apple says most classes don't even require any equipment though, or at most a pair of dumbells.
RIP Peloton? — Competitor Peloton saw its stock fall about 5 percent on the announcement of Fitness+. It offers its own subscription service that can be used independent of its bike and treadmill, and the company has touted that service as offering huge growth potential beyond the market for its luxury exercise bikes. The Peloton digital subscription costs $12.99 per month whereas Fitness+ is being priced at $9.99 a month, though the latter only offers pre-recorded classes whereas Peloton has a mix of live and recorded options.
Bundling benefits — Apple could pose a serious threat to Peloton by promoting Fitness+ to its existing millions of Apple Watch owners. The company says it will offer three months free with new Watch purchases. It also plans to offer Fitness+ as part of its new Apple One subscription bundle launching in the fall. In the top-tier $29.95 offering, Apple will give subscribers access to Apple Music, Apple TV+, Apple Arcade, iCloud storage, News+, and Fitness+. That's basically an unbeatable value and could see Apple scoop up customers from other competitors like Spotify.
Subscription services are a key aspect of Apple's future growth as its hardware sales slow. Apple Music now touts more than 60 million subscribers, though the company has been mum about the success of its other services like TV+ and News+. The new bundles start at $14.99 per month will likely buoy those services and get users trying them if they hadn't before.
Even outside of a bundle, Fitness+ is launching with a lot of tailwinds. Gyms in many areas around the U.S. remain closed or at limited capacity, and Peloton has reported seeing its subscriptions grow 30 percent in the most recent quarter to 2.6 million subscribers.