Great read. IMO, the Apple TV/FirE TV interoperability play serves two key purpose: 1) to create even greater ecosystem engagement across Peloton's install base and 2) to serve as top-of-the-funnel marketing for those who have not yet converted.

Re #1, we've seen Peloton move into modalities such as strength training, yoga, etc. These modalities are not hardware centric, which means that having access to the big screen is critical. As Peloton builds out its wellness ecosystem, it can accelerate user adoption by relying on third-party OEMs. In fact, the Apple analogy that should hold here is that the Peloton bike = the iPhone, the center of the iOS system; not a hardware quality analogy.

Re: #2, interoperability effectively gets people to try the Peloton ecosystem before the buy. It's difficult to experience the Peloton community if you don't have the hardware. By letting users try lower-value modalities such as yoga, Peloton introduces people to their instructors, makes them feel part of the brand, and helps them feel invested in the community. And if users pay for effectively a zero marginal cost product? Even better!

Over the long run, interoperability is going to serve as a widening of the conversion funnel. I suspect that Peloton will continue to favor its hardware over general access, as that's the source of competitive advantage for now. Happy to chat more.

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