FIBO FOCUS • February 18, 2020
TECH AND THE HEALTH CLUB
THE STREAMING WARS
STREAMING TECHNOLOGY HAS ARRIVED IN THE FITNESS AND AT-HOME WORKOUT MARKET. SO HOW DO HEALTH CLUBS ADAPT TO THIS NEW REALITY?
BY JEAN-MICHEL FOURNIER
O
ne of the newest trends in fitness involves the delivery of streaming group exercise content to consumers wherever they are — call it the Disney+/Apple TV/Netflix streaming war effect. While the ondemand, at-home workout trend is not revolutionary (lest we forget bike shorts, over-the-pant thongs and leg lifts à la Jane Fonda), 2019 saw an explosion of new and repackaged entrants in the at-home fitness space. (Equinox, LifeFitness, Echelon, MYXfitness, iFit via NordicTrack, Tonal, Mirror, Openfit via Beachbody co-founder John Congdon, to name
6
FIBO FOCUS
a few). All of these companies took aim to penetrate the growing $94 billion global fitness industry. According to 2019 research done by L.E.K. Insights, digital fitness content market growth in the U.S. alone translates to 14 million new subscribers and a $3.3 billion market opportunity in 2020. Writing about the recent CES 2020 technology conference, Natt Garun of The Verge says, “Fitness is now as trendy as owning the latest iPhone.” Therefore, it is natural to assume the focus of attention centers on the two largest generations of fitness users, Millennials and Gen Zs,
which now make up 80 percent of the fitness market. These “anywhere and everywhere” generations are carnivorous consumers of 24/7 digital streaming content, including exercise content. As true digital natives, this generation of consumers has grown up with the Internet in its pocket, technology seamlessly integrated in their daily lives, and has evolving needs for their fitness experiences. Research also shows that 85 percent of club members also exercise outside of clubs. Despite this demand from new fitness business growth and consumers, streaming and downloadable www.fibousa.com