There are some people who miss the days when Apple only made shiny pieces of metal. I am not in that camp. I have no problem with Apple rolling out new services, as long as they are made with purpose and care. Fitness+ fits the bill. It’s a really nice integration of Apple’s ecosystem to bring something new to home fitness courses. The interaction between the recorded video and the user’s on-screen health metrics is useful and simple for prospective subscribers to understand.
Although we can’t test the app yet, the marketing screenshots are promising. It looks like a well made app, with some signature Apple niceties sprinkled on top. There are some obvious paths for future expansion, such as offering live sessions or audio-only workouts for when you are exercising outside with your Watch and AirPods, which I’m sure Apple will get to in the fullness of time.
Until I can try it out for myself (“by the end of the year”), the only criticism I have is that the service will require a Watch. The Fitness app on iPad and Apple TV won’t let you do anything unless it can sense that a nearby Watch is present. This seems like an unnecessary artificial limitation. It is true that the unique parts of the service do depend on the Watch, but I think it’s stupid that the rest of my (non-Watch bearing) family won’t be allowed to use the Apple TV to follow along with the virtual classes and do some exercise.
When I was watching the presentation live, before the denouement of the Fitness+ section, I was expecting a $4.99 per month price point. Fundamentally, Fitness+ is workout videos with some overlaid metrics. Apple can pump these out with relatively low overheads. So, $5 felt about right, to match the value proposition as Arcade and TV+.
With that expectation in mind, I was taken aback when they said it was $9.99 per month (or $80 a year). Music is $9.99 because you get truly unlimited music and streaming music market is tightly controlled. News+ is $9.99 because Apple has to pay publishers. The content offered by Music and News has a marginal cost, which is not true for TV+ and Arcade. Those services have fixed cost financials; Apple doesn’t pay each time a user consumes games or TV shows, it only has to lay down the upfront cost of commissioning them. Hence, only $5.
Fitness+ is a fixed cost service, but it has higher-rate pricing. From the business side, Apple is going to singing for the hills if they can accrue millions of Fitness+ subscribers. It will easily be their most profitable service per customer. In the scheme of things, producing a set of fitness videos on a weekly basis is relatively inexpensive. Their outlay on a single TV+ show will easily cost more than running the entire the Fitness+ service for years.
That being said, it doesn’t matter how much it costs to make, it’s what the market can bear. At $9.99, Fitness+ is legitimately competitive with other workout plans. I clicked on a handful of fitness apps in the App Store, and Apple’s offering is coming in at the same price or sometimes slightly cheaper. For instance, Peloton’s digital subscription is $13. Fitness+ is not a direct competitor to Peloton’s business, but it plays in the same space.
Moreover, Apple has an ulterior motivation. It’s the bundle. As soon as I saw the Apple One pricing slide, any doubts I had about the chosen pricing were explained away on the spot. By making Fitness+ cost a lot, the Premier bundle looks way more appealing. The Premier bundle boasts a $25 saving on a $29.95 monthly price. Almost half of that discount is enabled by Fitness+ being part of Premier, a service that costs Apple almost all no money. Brilliant.