IT IS NOT ABOUT THE BIKE - PELOTON
I was inspired recently by the Peloton story. A story of innovation, struggle, and turnaround. While much of the rough edges have been edited out of the content below, you will see more info about that, at the bottom of the article. I like this story as it is about adaptation, but also how fresh thinking, and a renewed focus on the value proposition can reveal the true value of a business. In a world obsessed with new technology, it is reassuring to discover stories like this, that in the end come down to one common denominator that unites us all. People.
When Lance Armstrong titled his autobiography "It’s Not About the Bike", the phrase captured something powerful - that the machine is secondary to the mindset. The bike was never the point. The human was.
The story later unravelled. But the phrase remains useful.
Because today, in a very different context, it applies perfectly to Peloton.
The Strategic Lesson of Peloton: Technology Is the Enabler, Not the Value
From Lockdown Darling to Post-Pandemic Crisis
During Covid lockdowns, Peloton became a symbol of resilience and reinvention. Confined to our homes, millions invested in connected fitness. Revenue soared. The share price rocketed. The bike became a cultural icon.
But when the world reopened, demand collapsed.
Gyms reopened. Consumers returned to normal life. Supply chain costs rose. Inventory piled up. By 2022, Peloton had lost billions in market value and faced existential questions. Was it simply a pandemic bubble?
The assumption had been clear: Peloton was a hardware company. A premium exercise bike with a screen.
And hardware businesses are cyclical.
The Turning Point: It Was Never About the Bike
In 2022, Barry McCarthy stepped in as CEO.
His diagnosis was deceptively simple.
Peloton was not a hardware company. It was a subscription media company disguised as one.
The real value was not the steel frame, the flywheel, or the touchscreen.
It was the instructors.
The energy.
The personalities.
The motivation.
The connection.
Users were not loyal to the bike. They were loyal to the people on the screen.
Members spoke about their favourite instructors as if they were personal coaches. They followed them across platforms. They quoted them. They felt accountable to them.
The product was community.
The bike was merely the access point.
Reframing the Business Model
Under new leadership, Peloton shifted focus:
- Subscription revenue over hardware sales
- Cost discipline and restructuring
- Expanding digital-only memberships
- Opening the platform beyond owned hardware
- Strategic partnerships to broaden reach
The goal was clear - grow recurring revenue, reduce capital intensity, and double down on what members actually valued.
Instructors became central to brand identity. Content cadence increased. Community features were strengthened. The narrative shifted from “buy this bike” to “join this movement”.
The turnaround was not immediate. But it was intentional.
And crucially, it was human.
FuturePrint: A Parallel Story of Adaptation
The lesson resonates beyond fitness technology.
FuturePrint was born during the pandemic. When physical events stopped, the need to connect did not disappear. In many ways, it intensified. We hosted numerous virtual events during that period, enabling connection when the industry needed it most.
But as lockdowns lifted and physical events returned, we faced a similar inflection point. The world was reopening. Large tradeshows retained relevance. Yet the behaviour of buyers, influencers and leaders had shifted.
They no longer wanted connection only once or twice a year.
They wanted ongoing access to trusted information, thought leadership, reports, webinars, deep-dive podcasts and film.
So we adapted.
We continued virtual engagement, but expanded the editorial strength of the FuturePrint platform. We launched FPTV. We developed the FuturePrint Podcast. We built physical events in Cambridge, Valencia and now Munich.
The business we have today is very different to the one that started in 2020.
But the value proposition remains the same.
Connection.
Credible information.
Relatable storytelling.
Focused, relevant, future-oriented gatherings.
While the story is different to Peloton, the outcome is similar.
Success came not from abandoning the core proposition, but from refining it. From recognising what people truly valued and building around that need.
The Strategic Lesson: Technology Is the Enabler, Not the Value
There is a broader leadership lesson here.
In industrial print, manufacturing, AI, software, hardware - we often default to the technology story. We talk about speed, resolution, throughput, algorithms, efficiency.
But customers rarely fall in love with specifications.
They fall in love with outcomes.
They stay for experience.
Peloton’s recovery reminds us that even in the most technology-driven businesses, value is often emotional before it is functional.
Connection scales.
Community compounds.
People differentiate.
The Reassuring Part
At a time when AI, automation and digital systems dominate the narrative, both Peloton and FuturePrint demonstrate that the human layer still matters most.
Fresh thinking did not mean better hardware.
It meant asking a different question:
What do our customers truly value?
The answer was not the machine or tech platform.
It was the motivation.
Not the bike.
The bond.
IT IS NOT ABOUT THE BIKE
The phrase endures because it speaks to something universal.
Tools matter. Platforms matter. Technology matters.
But in the end, performance - whether in cycling, business, or industry - is driven by people.
It is a story of succeeding through adaptation while retaining the core value proposition. Of not losing relevance. Of slowly morphing into a business that leads in content and community for the future of print technology.
Because sometimes the breakthrough insight is simple.
It was never about the bike.
Additional info: McCarthy’s Strategic Impact
McCarthy’s "refocused" strategy (2022–2024) included several foundational shifts that persist today:
Hardware to Software Pivot: He repositioned Peloton as a "content and technology company that happens to sell hardware," mirroring his experience at Netflix and Spotify.
Agnostic Distribution: He broke Peloton’s "walled garden" by allowing its content to be used on competitors' hardware and selling products on Amazon and through third-party retailers.
New Revenue Streams: He introduced the Rental Program (lowering the barrier to entry) and a "freemium" tier for the digital app to widen the marketing funnel.
Strategic Partnerships: He secured high-profile deals with Lululemon, TikTok, and the NBA to integrate Peloton content into broader ecosystems.
The Transition to Peter Stern (2025–2026)
While McCarthy stabilized the cash flow, he was criticized for failing to ignite actual growth. The "doing well" phase of growth in 2026 is largely credited to Peter Stern’s refinement of McCarthy's ideas:
Operational Discipline: Stern has been credited with more conservative guidance and better execution of the "app strategy" which critics say McCarthy over-indexed on to the point of near-bankruptcy.
Holistic Wellness: Under Stern, the value proposition has expanded further into a "Healthspan" strategy, including strength, mental well-being, and nutrition, moving beyond McCarthy's primary focus on cardio.
Standalone Commitment: Unlike McCarthy, who was often seen as preparing the company for a sale, Stern has emphasized keeping Peloton as a standalone, profitable entity.
*TSOH Investment Research (Alex Morris)