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This statistic highlights Peloton Interactive’s Connected Fitness Churn, reported on a quarterly basis.
Peloton is an ingenious company at the nexus of fitness, technology, and media. It makes fitness entertaining, accessible, effective, and convenient, while fostering social connections that encourage the members to be the best versions of themselves.
What is Average Net Monthly Connected Fitness Churn?
Peloton Interactive uses Average Net Monthly Connected Fitness Churn to measure the retention of their Connected Fitness Subscriptions. Average Net Monthly Connected Fitness Churn is defined as Connected Fitness Subscription cancelations, net of reactivations, in the quarter, divided by the average number of beginning Connected Fitness Subscriptions in each month, divided by three months. This metric does not include data related to Peloton Digital subscriptions for Members who pay a monthly fee for access to the content library on their own devices.
|Item||Q1 2020||Q2 2020||Q3 2020||Q4 2020||Q1 2021||Q2 2021||Q3 2021||Q4 2021||Q1 2022||Q2 2022|
|Average Net Monthly Connected Fitness Churn (%)||0.9||0.7||0.5||0.6||0.7||0.8||0.3||0.7||0.8||0.8|
(All figures are in percentages)
The average net monthly connected fitness churn was 0.9% in Q1 2020, and it dips to 0.8% in Q2 2022. However, the pattern of growth has been marked by various fluctuations, experiencing periods wherein the average net monthly connected fitness churn fell and periods where it rose.
In 2020, the average net monthly connected fitness churn was subject to multiple fluctuations. It first decreased from 0.9% in Q1 2020 to 0.7% in Q2 2020, making a decline of 22.22%. It further fell to 0.5% in Q3 2020, declining by 28.57% from Q2 2020 to Q3 2020. It slightly increased from 0.5% in Q3 2020 to 0.6% in Q4 2020, making an increment of 20%.
In 2021, the average net monthly connected fitness churn initially increased from 0.7% in Q1 2021 to 0.8% in Q2 2021, indicating an incline of 14.3%. Despite the constant rise since Q3 2020, it fell to 0.3% in Q3 2021, marking a decrease of 62.5% as compared to Q2 2021. However, it made a jump from 0.3% in Q3 2021 to 0.7% in Q4 2021, witnessing a growth of 133.3%.
For the latest quarter, Q2 2022, the average net monthly connected fitness churn was 0.8%, which remained constant in comparison to Q2 2021 on a yearly basis, as well as compared to Q1 2022, on a quarterly basis.
On an overall analysis, the average net monthly connected fitness churn displayed a downward trend from Q1 2020 to Q4 2020, i.e., during the recent stage of the COVID-19 pandemic. At the end of the period, it stood at 0.6%. This was followed by an addition of 0.1% for the next two consecutive quarters as average net monthly connected fitness churn was noted at 0.7% and 0.8% in Q1 2021 and Q2 2021, respectively. However, it dips to 0.3% in Q3 2021. Besides, it saw an upward movement from 0.3% in Q3 2021 to 0.7% in Q4 2021, and continue to grow on a quarterly basis. The average net monthly connected fitness churn remains constant since then as it stood at 0.8% for the latest quarter of 2022.
Peloton is the biggest interactive fitness platform in the globe and it has a community of over 6.6 million members, as of December 31, 2021. The company introduced connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes to its members, accessible anytime, anywhere. It has rattled the fitness industry by developing a first-of-its-kind subscription platform that flawlessly combines the best equipment, proprietary networked software, and world-class streaming, digital fitness and wellness content, creating a product that their members love.
Driven by its members-first mindset, they built a vertically integrated platform that ensures a best-in-class, end-to-end experience. The company has a direct-to-consumer, multi-channel sales platform. It had 123 showrooms as of June 30, 2021, with knowledgeable sales specialists, a high-touch delivery service, and helpful member support teams. Their world-class instructors teach classes over a diverse fitness and wellness disciplines, including indoor cycling, indoor/outdoor running and walking, bike and tread bootcamps, yoga, pilates, barre, strength training, stretching, meditation, and floor cardio. It builds hundreds of original programs per month and maintains a vast and persistently updated library of thousands of original fitness and wellness programs. They make it easy for members to find a class that fits their interests based on class type, instructor, music genre, length, available equipment, area of physical focus, and level of difficulty.
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