Peloton to offer a more Netflix-like experience
SAN FRANCISCO – A more Netflix-like experience could be coming to Peloton subscribers over the next year, CEO Barry McCarthy said Monday at the Goldman Sachs Communacopia + Technology Conference.
Why it matters: The company hadn't focused on content personalization prior to McCarthy — a former CFO who spent nearly two decades at Netflix and Spotify — taking the reins in February.
State of play: Peloton offers some personalization now, but McCarthy says the platform can do better to give customers an “incredibly engaging experience.”
- "We haven’t invested in personalization nearly to the degree that will drive an infinitely better user experience," McCarthy said.
- "From a content experience, the most revolutionary thing we’ll do in the next 12 months will be on the personalization side."
The big picture: Peloton is currently in the middle of a huge transformation strategy to get back to profitability. So far this year it has overhauled its operations, supply chain, distribution and pricing strategies in an effort to both cut costs and grow its customer base.
- Shortly before McCarthy's presentation on Monday, Peloton also announced that co-founders John Foley and Hisao Kushi are stepping down as executive chairman and chief legal officer, respectively, and leaving the company.
Our thought bubble: As Peloton focuses more on driving higher-margin subscription revenue, it's likely more apt to evaluate the company like Apple's iPhone strategy which combines premium hardware and software.