Peloton faces new rival from Apple's reported exercise service

Yahoo Finance's Kristin Myers and Sibile Marcellus discuss Bloomberg's report that Apple is planning an exercise video subscription service and what that could mean for fitness companies like Peloton.

Video Transcript

KRSITIN MYERS: We're going to be chatting Apple right now. That stock up 1 and 1/4 of a percentage point. They are going to be readying a subscription bundle, essentially, to boost digital services. So for more on that, we're joined now by Yahoo Finance's Sibile Marcellus. Hey, Sibile.

SIBILE MARCELLUS: That's right. So Apple is ripping a page right out of Amazon Prime, trying to boost their business. And what they want to offer consumers, starting reportedly in early October, is subscription bundles. So like a bunch of different services piecemeal.

So for example, they are going to have different tiers. It's going to be a monthly price for consumers. And you get to pick what you want in that bundle. So what they're considering is a basic package with Apple Music and Apple TV Plus. So that's one level. Another level, a little bit higher, another tier, would be including Apple TV Plus, plus Apple Music, and Apple Arcade gaming service. Now, you could also mix and match those services with Apple News Plus for a different price, and then also extra iCloud storage for photos and files.

So Apple basically trying to give consumers what they want. And the goal of all this is for the bundles of the different services to be cheaper per month than if you were to pay for the different individual services by themselves. So what we're seeing here is, Peloton, they could possibly be threatened. Because Apple is considering having a physical class, a virtual fitness subscription service. That's going to be new for Apple. And that would be one of the pricier ones. So we'll keep an eye on all this. But a different innovation here from Apple.

KRSITIN MYERS: All right. Thanks so much, Sibile.