Peloton shares slip on news Apple planning exercise video subscription service

Peloton shares dropped more than 4.5% in premarket trading Thursday on a report that Apple is working on a subscription service for digital fitness classes. 

Apple plans to offer virtual workouts via an app for the iPhone, iPad and Apple TV, Bloomberg reported Thursday. Apple’s move is part of a broader effort to launch new subscription plans that bundle several of its services, including Apple News+, Apple Arcade, Apple Music and others.

Apple declined to comment on the Bloomberg report. 

It’s a direct threat to both Peloton and Nike, which offers the virtual training app called Nike Training Club. 

Peloton, which has seen heightened demand in its at-home spin bikes and treadmills due to the pandemic, has also reported growing engagement. Its app is available to anyone, regardless of whether or not they purchase equipment. 

The company reported in its third quarter 2020 earnings that it ended the quarter with 176,600 paying Digital Members, up 64% year-over-year.

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