Workout economy hangs fate on celeb trainers
At-home workout companies are turning fitness instructors into stars.
What's new: Tonal, which makes a wall-mounted, strength training device, said its machines will start streaming live classes in October.
- Tonal CEO Aly Orady also tells Axios that the company plans to open a studio in New York City.
- “More sound stages equal more capacity," he says. "In going live, we need more time zones and can [also] tap a whole new market of coaches."
What's happening: Instructors play a key role in user engagement, which ultimately drives better margins.
- For example: Peloton products had a 12% gross margin in its fiscal fourth quarter, compared with a 63% gross margin for subscription.
Who's who: Peloton's Cody Rigsby ascended to instructor fame amid the pandemic, and he just landed a spot on "Dancing with the Stars."
- As part of Tonal's announcement yesterday, the company called out new coaches — Brendon Ayanbadejo, Nikki Metzger, Kendall Wood — who already have sizable Instagram followings.
The big picture: Whether it's connected bikes, mirrors or weight systems, delivering classes through at-home workout equipment comes with the potential of reaching many more people than traditional studio classes.
The intrigue: While Peloton doesn't disclose what it pays instructors, CEO John Foley has acknowledged to Axios' Dan Primack that it's significantly more than they'd be making by teaching smaller, in-person classes.