The explosion of the boutique fitness market is going head to head with the mainstream health club industry. Spinning studios like Soul Cycle and Flywheel may be best known for creating cult-like followings, but a new fitness craze called Peloton also lets spinning enthusiasts take part from the comfort of their own home. The competitive classes are broadcast live from just 2 Peloton studios, in Chicago and NYC, so anyone who owns the company’s high tech exercise bike can tune in. ‘Our business model is less Soul Cycle, it’s more Apple (AAPL) meets Netflix (NFLX) to be honest, because it’s a subscription digital content business model.’ Peloton CEO John Foley told TheStreet. ‘You buy the bike, there’s margin in the bike for us. You then pay us $39 a month to get access to unlimited live and on demand classes.’ The high tech Peloton bike has become a coveted possession for fitness fanatics. The $1,995 model is equipped with a custom built tablet screen and uses a belt drive and magnetic resistance system instead of a regular chain. Men’s Health magazine named it the number one cardio machine of the year for 2015.
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