Peloton partly blamed Apple's App Tracking Transparency feature for missing new subscribers on the platform. On top of that, the shares of the app also plunged.
A general view shows the exercise maker Peloton logo in Manhattan, New York on May 17, 2021.
Peloton and Apple App Tracking Transparency
As per the report by 9to5Mac, the connected fitness firm, Peloton, which grew in user base during the COVID-19 pandemic, attributed some of its business challenges to the App Tracking Transparency of Apple.
Peloton made the pronouncements during the earnings report of the firm for the first quarter of 2022.
The news outlet further noted that the connected subscribers of Peloton are currently at 2.49 million, which has significantly grown from its user base by 87% from the last year of the same period.
It is to note that the said subscribers of Peloton are only the folks who have already purchased hardware from the fitness firm and are paying for its content.
However, the number of subscribers of Peloton that do not own any hardware from the company is already at the 6 million mark.
Although the number of subscribers of Peloton is still more than what was previously predicted, Mark Gurman of Bloomberg further noted on his Twitter account that the firm revealed that Apple's transparency feature is affecting its growth.
That said, if Peloton is to be believed, its subscriber count should have been more than 6 million if not because of Apple's App Tracking Transparency.
Read Also: Peloton Under Investigation Due to Several Injuries Involving its Equipment
Apple App Tracking Transparency
It is not the first time that a tech giant revealed that the App Tracking Transparency feature of Apple is affecting their business.
This illustration photo shows the Apple app store logo reflected from an iPhone onto the back of an iMac in Los Angeles, August 26, 2021. - Apple has agreed to loosen payment restrictions on its App Store, a major change announced in a settlement with small developers as the US technology giant faces growing scrutiny and legal challenges over its tightly controlled online marketplace. The change will allow small developers to inform their customers of alternative payment options beyond the official App Store.
For instance, social media giants, such as Facebook, which is now called Meta, Twitter, Snapchat, and even YouTube, admitted that the Apple transparency feature is affecting their ad revenue.
The Cupertino giant first rolled out the App Tracking Transparency feature on iOS 14.5, which Facebook staunchly fought back against before its release.
The said transparency feature of Apple required apps on iOS to ask permission from their users to track their behavior and data from other apps, which apps mostly use for their advertising platform.
That said, the App Tracking Transparency feature is directly affecting businesses like Facebook as their revenue comes from ad space.
However, the case with Peloton is different.
9to5Mac suggested in the same news story that the App Tracking Transparency is affecting the subscriber count of Peloton as its online ads have likely been less effective.
Peloton Shares Plunge
According to the report by Reuters, the shares of the fitness company sank after Peloton admitted that its sales forecast has gone down.
It subsequently comes as most people are no longer staying at the confines of their homes. Thus, treadmills and stationary bikes start collecting dust, which affects their demand from consumers.
Related Article: Fitness Equipment Maker Peloton to Offer Free Workout Classes for a Year to UnitedHealth's Members
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Written by Teejay Boris
