Happy Friday!
I like to think that March is still a good time to start hitting the gym so I thought it might be fun to also look at a fitness app.
Let's check out Peloton since it rebranded itself last year and introduced a new free app membership in May 2023.
This move by Peloton demonstrated their commitment to expanding accessibility and engaging a broader audience in their fitness ecosystem, but did it work? Taking a quick peek at Downloads, it looks like Peloton had a 39% increase in June 2023! To make sure it wasn't just a summer trend, I also compared it to June 2022 and it was pretty flat in 2022.
I also looked at Active Users to make sure Peloton members were using the app and working out, versus just having the app on their phone. Usage seems to have stayed elevated after May 2023.
Looks like the free membership tier is working but I was curious how it might have affected app revenue. Using the new In-App Purchase feature, I was able to see that June 2023 did get impacted with a revenue decrease, but over 2023, Peloton was able to drive revenue growth with App+ Annual Memberships.
We'll see how Peloton continues to evolve in digital fitness in 2024, but so far, it looks like the free app membership has successfully increased consumer interest.
This is just one example of how you can get a quick glimpse of how a recent app update might have impacted growth and usage. Please feel free to reach out to your Account Manager or Customer Success Manager to walk through a particular app together in detail!
Best regards,
Tony