1 00:00:01,080 --> 00:00:05,120 Speaker 1: This is the Business of Sports from Bloomberg Radio. Hi, 2 00:00:05,160 --> 00:00:07,960 Speaker 1: I'm Jason Kelly, and welcome to Bloomberg Business of Sports. 3 00:00:08,000 --> 00:00:11,760 Speaker 1: Happy Memorial Day. It's a strange one, to say the least. 4 00:00:12,000 --> 00:00:14,400 Speaker 1: So much is different about the world, and so much 5 00:00:14,480 --> 00:00:18,760 Speaker 1: is different obviously in the world of sports and fitness. 6 00:00:19,239 --> 00:00:21,000 Speaker 1: A guy that I've gotten to know over the years 7 00:00:21,079 --> 00:00:25,720 Speaker 1: is Rick Stollmeyer. He's the CEO, the founder of mind Body. 8 00:00:25,960 --> 00:00:28,440 Speaker 1: And if you don't know what mind Body is, if 9 00:00:28,480 --> 00:00:31,400 Speaker 1: you've ever been to a boutique studio, you've used it. 10 00:00:31,640 --> 00:00:36,040 Speaker 1: They are responsible for scheduling and processing of payments and 11 00:00:36,120 --> 00:00:39,880 Speaker 1: all sorts of things for thousands upon thousands of gyms 12 00:00:39,880 --> 00:00:44,479 Speaker 1: and yoga studios pilate studios around the world. Rick is 13 00:00:44,479 --> 00:00:47,440 Speaker 1: an incredibly thoughtful guys working on a book right now, 14 00:00:47,800 --> 00:00:51,360 Speaker 1: and as you'll hear in this conversation, he is thinking 15 00:00:51,680 --> 00:00:55,920 Speaker 1: very broadly but also very specifically about what this means 16 00:00:56,000 --> 00:00:59,320 Speaker 1: for us as business people, even for us as humans. 17 00:00:59,520 --> 00:01:01,680 Speaker 1: Check it out. So Rich, It's great to get some 18 00:01:01,720 --> 00:01:03,280 Speaker 1: time with you. You and I have got to know 19 00:01:03,360 --> 00:01:05,679 Speaker 1: each other over the years, and I feel like it's 20 00:01:05,720 --> 00:01:09,280 Speaker 1: such a critical moment, a catalytic moment right now for 21 00:01:09,440 --> 00:01:13,399 Speaker 1: the fitness industry. I guess I want to start by 22 00:01:13,480 --> 00:01:18,000 Speaker 1: just setting the table a little bit. Remind us, remind 23 00:01:18,040 --> 00:01:21,280 Speaker 1: me and our listeners sort of what mind Body is, 24 00:01:21,319 --> 00:01:25,080 Speaker 1: because you really are and have been at the core 25 00:01:25,360 --> 00:01:29,480 Speaker 1: of this fitness movement and have an intimate understanding of 26 00:01:29,520 --> 00:01:32,840 Speaker 1: how this works, that that very few people, if anybody, 27 00:01:32,880 --> 00:01:35,000 Speaker 1: has well, Jason, thank you for that. It's it's great 28 00:01:35,040 --> 00:01:37,800 Speaker 1: to be speaking with you again. And this is truly 29 00:01:37,840 --> 00:01:41,520 Speaker 1: a pivotal moment, of course for the world and for 30 00:01:41,640 --> 00:01:44,720 Speaker 1: the entire wellness of fitness movement as well. So my background, 31 00:01:44,959 --> 00:01:47,840 Speaker 1: uh my co founder Blake Felterman, I, we started mind 32 00:01:47,880 --> 00:01:51,960 Speaker 1: Body in the year two thousand and what we saw 33 00:01:52,040 --> 00:01:55,480 Speaker 1: happening was this emergence of the boutique fitness movement. It 34 00:01:55,560 --> 00:01:59,640 Speaker 1: was distinctly different than the health and racket sports clubs 35 00:01:59,680 --> 00:02:02,960 Speaker 1: that that it characterized fitness in the eighties and and nineties. 36 00:02:03,760 --> 00:02:06,920 Speaker 1: And they had a distinct set of business operating requirements. 37 00:02:07,440 --> 00:02:10,280 Speaker 1: They had a scheduling need, that had a staff management need, 38 00:02:10,280 --> 00:02:15,200 Speaker 1: they had a CRM opportunity um and a desire to 39 00:02:15,200 --> 00:02:17,160 Speaker 1: do all this via you know, this new thing called 40 00:02:17,200 --> 00:02:19,959 Speaker 1: the web to do online booking. So we built my 41 00:02:20,120 --> 00:02:23,240 Speaker 1: body out of that started in my garage in October 42 00:02:23,280 --> 00:02:26,640 Speaker 1: two thousand and now looking at it backwards, and you know, 43 00:02:26,639 --> 00:02:30,160 Speaker 1: connecting the dots, looking backwards, the Steve Jobs what said, 44 00:02:30,840 --> 00:02:33,160 Speaker 1: we can see that we launched our business right at 45 00:02:33,160 --> 00:02:36,800 Speaker 1: the early stages of what was the second wave of wellness, 46 00:02:37,760 --> 00:02:41,440 Speaker 1: and UH have just seen fabulous growth over the last 47 00:02:41,480 --> 00:02:46,440 Speaker 1: twenty years. UM. And you know, right up until March thirteen, 48 00:02:48,040 --> 00:02:51,840 Speaker 1: UH saw this third wave that really was powered by 49 00:02:51,880 --> 00:02:58,320 Speaker 1: cloud technology. UH and UH connected devices and mobile technology 50 00:02:58,360 --> 00:03:02,480 Speaker 1: and the cloud going into its its second stage. So 51 00:03:02,800 --> 00:03:07,560 Speaker 1: we saw fabulous growth in the twenties in the headlights 52 00:03:08,480 --> 00:03:13,320 Speaker 1: right before COVID nineteen just utterly interrupted. UH, you know 53 00:03:13,400 --> 00:03:16,160 Speaker 1: that wave. So I want to get to the present 54 00:03:16,200 --> 00:03:19,760 Speaker 1: wave and and that end and maybe where we go next. 55 00:03:19,760 --> 00:03:21,919 Speaker 1: But let's go back to the first if we can, 56 00:03:22,000 --> 00:03:24,480 Speaker 1: because this is something you and I have talked about before, 57 00:03:25,280 --> 00:03:27,600 Speaker 1: I've written about it. I'm fascinated by. I mean, this 58 00:03:27,720 --> 00:03:32,120 Speaker 1: really starts in the eighties, right it does. Yeah, you know, 59 00:03:32,240 --> 00:03:34,359 Speaker 1: and you look look at it backwards, you can see 60 00:03:34,360 --> 00:03:37,720 Speaker 1: a really clean connection to the emergence of a new 61 00:03:37,760 --> 00:03:40,080 Speaker 1: generation into their thirties. You know, we think of our 62 00:03:40,120 --> 00:03:44,400 Speaker 1: thirties as our real adulthood, and when we recognize as 63 00:03:44,440 --> 00:03:47,080 Speaker 1: human beings, we're all our kids anymore. We need to 64 00:03:47,080 --> 00:03:49,440 Speaker 1: get serious about our lives, serious about our careers, get 65 00:03:49,480 --> 00:03:52,280 Speaker 1: serious about taking care of ourselves. And that's when you 66 00:03:52,360 --> 00:03:54,840 Speaker 1: see these big waves starts. So of course, the Baby 67 00:03:54,880 --> 00:03:58,640 Speaker 1: Boom generation hitting their thirties right as we went into 68 00:03:58,640 --> 00:04:02,040 Speaker 1: the decade of the eighties, and all kinds of societal 69 00:04:02,120 --> 00:04:06,160 Speaker 1: changes happened at that moment, and um one of them 70 00:04:06,480 --> 00:04:09,160 Speaker 1: was the emergence of fitness, and that's when you saw 71 00:04:10,480 --> 00:04:15,680 Speaker 1: endurance sports. You know, cycling, triathlons became very popular. Racket 72 00:04:15,720 --> 00:04:19,800 Speaker 1: sports became hugely popular in that time. The International Health 73 00:04:19,800 --> 00:04:22,400 Speaker 1: and Racket Sports Association, which is the largest organization of 74 00:04:22,400 --> 00:04:26,679 Speaker 1: fitness today, was born in one Most of the large 75 00:04:26,720 --> 00:04:28,839 Speaker 1: health club brands that we've known so well in the 76 00:04:28,880 --> 00:04:32,080 Speaker 1: past several decades happened in that period of twenty four 77 00:04:32,120 --> 00:04:37,360 Speaker 1: Our Fitness, Crunch, Fitness, Equinox, u l A, Fitness, these 78 00:04:37,400 --> 00:04:41,599 Speaker 1: brands all emerged in the in the eighties, and and 79 00:04:41,640 --> 00:04:43,680 Speaker 1: it was empowered in each one of these ways. You 80 00:04:43,720 --> 00:04:47,039 Speaker 1: see that there's a technological component that's enabling it. And 81 00:04:47,040 --> 00:04:49,960 Speaker 1: of course the technological component in the eighties was PCs. 82 00:04:50,320 --> 00:04:54,760 Speaker 1: He now had the ability to automate the critical activity 83 00:04:54,800 --> 00:04:57,360 Speaker 1: of these health clubs, and that critical activity was simply 84 00:04:57,400 --> 00:05:00,160 Speaker 1: building the memberships. So you saw the health up the 85 00:05:00,160 --> 00:05:02,400 Speaker 1: industry and emerge out of what was kind of the 86 00:05:02,440 --> 00:05:06,799 Speaker 1: small footprints sweaty gym's of the sixties and seventies into 87 00:05:06,800 --> 00:05:09,520 Speaker 1: these multi purpose clubs that served both men and women, 88 00:05:09,920 --> 00:05:12,840 Speaker 1: that had group exercise going on, uh and they could 89 00:05:12,920 --> 00:05:15,560 Speaker 1: run the memberships of thousands of people. And at the 90 00:05:15,640 --> 00:05:18,599 Speaker 1: same time, the other top technology at the time was videotape, 91 00:05:19,040 --> 00:05:22,200 Speaker 1: and so the emergence of VHS and for those of 92 00:05:22,240 --> 00:05:25,400 Speaker 1: us old enough to remember, beta was at the same time. 93 00:05:26,240 --> 00:05:28,240 Speaker 1: That's when you saw, you know, the Jane Fonda work out, 94 00:05:28,240 --> 00:05:30,919 Speaker 1: you saw Richard Simmons sweating with the oldies, and that 95 00:05:31,040 --> 00:05:33,839 Speaker 1: brought the concepts of group exercise into the living room 96 00:05:34,279 --> 00:05:38,479 Speaker 1: of millions of people. And that way really continued all 97 00:05:38,520 --> 00:05:41,039 Speaker 1: the way through the mid nineties until you have the 98 00:05:41,080 --> 00:05:45,640 Speaker 1: next generation emerging, which was around that of course was 99 00:05:45,880 --> 00:05:48,760 Speaker 1: my generation. It's Gen X and the Gen xers when 100 00:05:48,760 --> 00:05:51,200 Speaker 1: we reached our thirties a little bit different personalities and 101 00:05:51,279 --> 00:05:56,560 Speaker 1: the Boomers significantly different personalities, more independent, more individualistic, more 102 00:05:56,600 --> 00:06:00,000 Speaker 1: pragmatic perhaps, um. And that's when you saw this prolific 103 00:06:00,000 --> 00:06:03,799 Speaker 1: oration of the small boutique studios. So the microgym movement 104 00:06:03,839 --> 00:06:07,200 Speaker 1: in the studio movement started in the late nineties, and 105 00:06:07,279 --> 00:06:09,800 Speaker 1: that's where you had a much more personal touch. You 106 00:06:09,839 --> 00:06:13,520 Speaker 1: had less people coming in, but the amount of benefit 107 00:06:13,600 --> 00:06:15,560 Speaker 1: being given to those people was much higher. You know. 108 00:06:15,600 --> 00:06:20,800 Speaker 1: This is the spin studios, yoga studios, pilates, gyro tonic um. 109 00:06:20,880 --> 00:06:23,520 Speaker 1: This is when the boot camp started. High intense in 110 00:06:23,600 --> 00:06:28,840 Speaker 1: interval training was invented during this time. And and so 111 00:06:28,880 --> 00:06:31,080 Speaker 1: that was the environment that my body was born in 112 00:06:31,720 --> 00:06:33,919 Speaker 1: right in the year two thousands to meet the requirements 113 00:06:33,920 --> 00:06:36,640 Speaker 1: of that group. And of course what the enabling technology 114 00:06:36,680 --> 00:06:39,360 Speaker 1: was the Internet. The ability to link the data is 115 00:06:39,400 --> 00:06:43,159 Speaker 1: the data of hundreds of locations. Uh, the ability to 116 00:06:44,240 --> 00:06:46,839 Speaker 1: enable online bookings, which solved a major problem. And that 117 00:06:46,960 --> 00:06:50,840 Speaker 1: was the birth of mind body, among others. And then 118 00:06:51,480 --> 00:06:54,200 Speaker 1: in the decade of two thousand ten UM, which you 119 00:06:54,279 --> 00:06:57,839 Speaker 1: had of course with inmerdeness of millennials, and with millennials, 120 00:06:57,839 --> 00:07:00,719 Speaker 1: this is the first generation raised with the internet. UH. 121 00:07:00,760 --> 00:07:03,080 Speaker 1: This is when now the smartphones are online when cloud 122 00:07:03,080 --> 00:07:07,600 Speaker 1: technologies enable things that's like, for example, aggregation of enormous 123 00:07:07,600 --> 00:07:11,120 Speaker 1: amounts of data. So class pass was born in that time. 124 00:07:11,160 --> 00:07:13,280 Speaker 1: Mind Body we released the mind Body app. We became 125 00:07:13,320 --> 00:07:17,800 Speaker 1: a consumer brand in the decade of UM and then 126 00:07:17,800 --> 00:07:20,120 Speaker 1: you saw this this way. What's exciting about these ways 127 00:07:20,280 --> 00:07:22,320 Speaker 1: is that, let's go all the way back to the boomers. 128 00:07:22,320 --> 00:07:25,880 Speaker 1: They're still going to the clubs and many of them 129 00:07:25,920 --> 00:07:28,680 Speaker 1: adopted the boutique fitness practices and that jen Actually, of 130 00:07:28,680 --> 00:07:31,840 Speaker 1: course we're still out there because we're all living longer 131 00:07:31,880 --> 00:07:36,239 Speaker 1: than ever before. So these ways are generally additive, and 132 00:07:36,560 --> 00:07:37,880 Speaker 1: you know, it takes us. We're all the way up 133 00:07:37,880 --> 00:07:42,360 Speaker 1: to uh, you know, uh two months ago. Right, So 134 00:07:42,360 --> 00:07:44,200 Speaker 1: so let me ask you, Chris, before we get to that, 135 00:07:44,240 --> 00:07:46,560 Speaker 1: I also want to focus in on exactly what you 136 00:07:46,600 --> 00:07:48,720 Speaker 1: just said, because I think it's such a critical point, 137 00:07:49,240 --> 00:07:53,480 Speaker 1: this notion that it's additive, and this notion that despite 138 00:07:54,080 --> 00:07:56,760 Speaker 1: some bumps along the way and some shifts in modality 139 00:07:56,840 --> 00:08:00,440 Speaker 1: and shifts in what may be popular at any given time, 140 00:08:00,880 --> 00:08:05,000 Speaker 1: the sort of mega trend remains intact. What is it 141 00:08:05,280 --> 00:08:11,760 Speaker 1: about fitness and wellness more broadly that is ultimately appealing 142 00:08:11,760 --> 00:08:16,640 Speaker 1: to people because it feels like, ultimately this is a 143 00:08:16,640 --> 00:08:20,160 Speaker 1: as core as core gets to our very being. Not 144 00:08:20,280 --> 00:08:22,080 Speaker 1: to go too big on it, but it does feel 145 00:08:22,080 --> 00:08:25,920 Speaker 1: that way. It is indeed, and it's core to the 146 00:08:26,000 --> 00:08:28,800 Speaker 1: very being of people who are living in the higher 147 00:08:28,920 --> 00:08:32,400 Speaker 1: levels of Maslow's hierarchy of needs. If you think about it, 148 00:08:32,520 --> 00:08:36,360 Speaker 1: most of our ancestors, for for most almost entirety of 149 00:08:36,440 --> 00:08:40,360 Speaker 1: human history, have lived in subsistence, which is the bottom 150 00:08:40,360 --> 00:08:44,280 Speaker 1: two rungs of Maslow's higer earchyching picture that that pyramid 151 00:08:44,760 --> 00:08:48,000 Speaker 1: at the bottom was physiological needs. Basically you know, that's 152 00:08:48,160 --> 00:08:52,200 Speaker 1: food water safety or food water shelter, and then they're 153 00:08:52,240 --> 00:08:56,120 Speaker 1: basically physical safety. Uh. And thus what you know, most 154 00:08:56,120 --> 00:08:59,400 Speaker 1: of our ancestors we're dealing with up until the end 155 00:08:59,400 --> 00:09:01,800 Speaker 1: of World War you and at the end of World 156 00:09:01,840 --> 00:09:05,600 Speaker 1: War two you started seeing millions of people per year 157 00:09:06,520 --> 00:09:09,960 Speaker 1: emerging into this new middle class and then ultimately many 158 00:09:10,000 --> 00:09:12,240 Speaker 1: of them to the upper middle class and the more 159 00:09:12,240 --> 00:09:15,320 Speaker 1: assimut levels. And when you when you're at that level, 160 00:09:15,720 --> 00:09:18,160 Speaker 1: your mind can shift to now thinking about the things 161 00:09:18,160 --> 00:09:22,760 Speaker 1: that are really much more deeply meaningful, love and belonging, relationships, 162 00:09:23,160 --> 00:09:26,920 Speaker 1: self esteem, and ultimately the very pinnacle of self actualization, 163 00:09:27,040 --> 00:09:30,800 Speaker 1: meaning actually realizing what your life should be about. And 164 00:09:30,840 --> 00:09:33,320 Speaker 1: I think there is that point in all of our lives, 165 00:09:33,320 --> 00:09:34,840 Speaker 1: those of us that are lucky in us to be 166 00:09:34,960 --> 00:09:38,040 Speaker 1: in the middle class or above, well, we realize that 167 00:09:38,080 --> 00:09:42,000 Speaker 1: without a body that works, everything else is irrelevant. You know, 168 00:09:42,040 --> 00:09:44,880 Speaker 1: you can't take it with you and your path is 169 00:09:44,920 --> 00:09:47,240 Speaker 1: going to be shorter and harder if you don't take 170 00:09:47,240 --> 00:09:49,920 Speaker 1: care of your physical body. And then it even starts 171 00:09:49,960 --> 00:09:52,319 Speaker 1: going down that because wellness is about way more than 172 00:09:52,360 --> 00:09:54,760 Speaker 1: just physical sitness. That's the cornerstone, you know, without a 173 00:09:54,960 --> 00:09:56,800 Speaker 1: without a body that works, we don't have time to 174 00:09:56,840 --> 00:10:00,160 Speaker 1: think about our social well being and thinking about our 175 00:10:00,200 --> 00:10:03,200 Speaker 1: emotional well being, um, getting some sense of purpose in 176 00:10:03,200 --> 00:10:07,160 Speaker 1: our lives. And so these this concept of the seven 177 00:10:07,200 --> 00:10:11,640 Speaker 1: dimensions of wellness is extremely important and has become the 178 00:10:11,760 --> 00:10:16,400 Speaker 1: principal driver of the vast majority of humanity. I mean, 179 00:10:16,480 --> 00:10:20,520 Speaker 1: north of two billion people now um are are in 180 00:10:20,559 --> 00:10:23,360 Speaker 1: the middle class or above. And while we can talk 181 00:10:23,400 --> 00:10:25,640 Speaker 1: about how certain societies, while the middle class hasn't done 182 00:10:25,640 --> 00:10:28,160 Speaker 1: as well perhaps in North America, as they did in 183 00:10:28,200 --> 00:10:30,880 Speaker 1: the prior decades, if you go out with the longer leans, 184 00:10:30,920 --> 00:10:33,320 Speaker 1: we'll look at the whole of the world. We've never 185 00:10:33,400 --> 00:10:38,240 Speaker 1: had this many people living outside of subsistence, and that 186 00:10:38,640 --> 00:10:43,120 Speaker 1: has been this giant force driving the fitness industry in particular, 187 00:10:43,160 --> 00:10:45,960 Speaker 1: and of course the overall warms industry as well over 188 00:10:46,000 --> 00:10:49,360 Speaker 1: the last two decades. So let's talk about this moment 189 00:10:49,400 --> 00:10:53,160 Speaker 1: because I feel like that is exactly where we are 190 00:10:53,280 --> 00:10:59,000 Speaker 1: right now and in terms of having a group of people, 191 00:10:59,360 --> 00:11:03,040 Speaker 1: and it's I think important, uh to point out very 192 00:11:03,040 --> 00:11:06,960 Speaker 1: important point, which is we are talking about an educated 193 00:11:07,600 --> 00:11:12,440 Speaker 1: and ultimately affluent to very affluent group of people that 194 00:11:12,480 --> 00:11:14,040 Speaker 1: we're talking about here. I mean you and I are 195 00:11:14,080 --> 00:11:19,319 Speaker 1: talking in you know, late May of the world has 196 00:11:19,360 --> 00:11:24,480 Speaker 1: been fundamentally changed, and we've been reminded of the of 197 00:11:24,559 --> 00:11:26,920 Speaker 1: the fact that you know, different people are living very 198 00:11:26,960 --> 00:11:29,600 Speaker 1: different lives. We are seeing record unemployment, all of those 199 00:11:29,640 --> 00:11:33,040 Speaker 1: different things. And yet for a segment of the population 200 00:11:34,080 --> 00:11:35,600 Speaker 1: of which you and I are very fortunate to be 201 00:11:35,640 --> 00:11:38,920 Speaker 1: a part of, people are more worried in some ways 202 00:11:39,120 --> 00:11:43,920 Speaker 1: about their well being, their wellness both physical and mental. 203 00:11:44,040 --> 00:11:50,520 Speaker 1: And I do wonder this moment what you make of it. Well, 204 00:11:50,559 --> 00:11:53,080 Speaker 1: there's a lot here to unpack, isn't there? And important 205 00:11:53,080 --> 00:11:54,920 Speaker 1: to all of us if we try to try to 206 00:11:54,960 --> 00:11:57,400 Speaker 1: get into focus in this. You know, we're staring into 207 00:11:57,440 --> 00:12:01,400 Speaker 1: a into a misty future and trying to understand, you know, 208 00:12:01,480 --> 00:12:04,160 Speaker 1: what is this this new so called normal that we're 209 00:12:04,160 --> 00:12:07,880 Speaker 1: going to live in. And I think we can anchor 210 00:12:07,920 --> 00:12:11,760 Speaker 1: ourselves in certain fundamental truths. Let's start with the first thing, 211 00:12:11,840 --> 00:12:16,960 Speaker 1: that the human beings don't flourish our isolation. We I 212 00:12:17,000 --> 00:12:18,920 Speaker 1: think we all know people right now in our lives 213 00:12:18,920 --> 00:12:22,280 Speaker 1: and perhaps even on our own household whose mental well being, 214 00:12:22,400 --> 00:12:25,199 Speaker 1: perhaps even physical well being, has been diminished in the 215 00:12:25,280 --> 00:12:28,360 Speaker 1: last couple of months. And that's really, of course of 216 00:12:28,400 --> 00:12:32,800 Speaker 1: great concern because as we know about COVID, UH, COVID 217 00:12:32,880 --> 00:12:36,520 Speaker 1: is striking the people who are in poor shape the worst. So, 218 00:12:37,320 --> 00:12:43,280 Speaker 1: you know, the so called pre existing conditions obesity, cardiovascar disease, hypertension, 219 00:12:43,480 --> 00:12:48,719 Speaker 1: type two diabetes. UH, these things are predominantly caused, are 220 00:12:48,760 --> 00:12:53,480 Speaker 1: predominantly preventible, and predominantly caused by a sedentary lifestyle and 221 00:12:53,600 --> 00:12:59,320 Speaker 1: insufficient nutrition or the wrong nutrition. And so I think 222 00:12:59,320 --> 00:13:02,600 Speaker 1: that this period of time is shining a spotlight and 223 00:13:02,679 --> 00:13:05,839 Speaker 1: how important it is to get the whole of society 224 00:13:05,880 --> 00:13:08,760 Speaker 1: in better shape. And that doesn't mean that everybody has 225 00:13:08,800 --> 00:13:11,280 Speaker 1: to go from being a couch potato to being an athlete. 226 00:13:11,840 --> 00:13:14,400 Speaker 1: But even a moderate amount of exercise, even just just 227 00:13:14,520 --> 00:13:19,480 Speaker 1: incremental improvements in one's diet, can substantially change your health outcomes. 228 00:13:19,520 --> 00:13:22,120 Speaker 1: And I think COVID has has drawn that into sharp relief. 229 00:13:22,840 --> 00:13:25,400 Speaker 1: And as we emerge out of this crisis and the 230 00:13:25,520 --> 00:13:30,800 Speaker 1: data starts getting analyzed and they start drawing these correlations. Um, 231 00:13:30,800 --> 00:13:34,080 Speaker 1: my hope, our hope at my body is that the 232 00:13:34,160 --> 00:13:38,120 Speaker 1: people who pay for healthcare, and that is the employers, 233 00:13:38,160 --> 00:13:41,160 Speaker 1: the insurers, and the governments of the world, are going 234 00:13:41,160 --> 00:13:44,000 Speaker 1: to recognize that we have a global imperative to improve 235 00:13:44,000 --> 00:13:47,200 Speaker 1: all of our fitness. And I think that pretends very 236 00:13:47,240 --> 00:13:50,240 Speaker 1: well for the future of our industry and of course 237 00:13:50,240 --> 00:13:52,160 Speaker 1: for the future of humanity because when you get somebody 238 00:13:52,160 --> 00:13:53,600 Speaker 1: moving more and you're get a meeting them a little 239 00:13:53,640 --> 00:13:56,360 Speaker 1: bit better, everything gets better in their lives, you know. 240 00:13:56,400 --> 00:13:58,280 Speaker 1: But it's hard to get people over that hump, right. 241 00:13:58,320 --> 00:14:01,920 Speaker 1: It's that's why those teachers, those trainers, those therapists are 242 00:14:01,960 --> 00:14:04,400 Speaker 1: so important, because they're the ones that can actually help 243 00:14:04,600 --> 00:14:07,719 Speaker 1: the individual make a material change in their lives. So 244 00:14:07,760 --> 00:14:10,520 Speaker 1: that's something we believe it's true. The second, of course, 245 00:14:10,600 --> 00:14:13,040 Speaker 1: is you know, we clearly are in a recession. Now, 246 00:14:13,640 --> 00:14:15,760 Speaker 1: you know, the only argue, the only debate is how 247 00:14:15,800 --> 00:14:18,719 Speaker 1: long and deepest recession is. But let's assume that it's 248 00:14:18,720 --> 00:14:21,480 Speaker 1: a hard one, like this is on par with the 249 00:14:21,520 --> 00:14:24,480 Speaker 1: Great recession of oh eight, oh seven, O eight or nine, 250 00:14:25,000 --> 00:14:27,200 Speaker 1: or maybe even a little worse. Just if we start 251 00:14:27,240 --> 00:14:29,280 Speaker 1: with that assumption. I'm not saying that I know that 252 00:14:29,320 --> 00:14:32,320 Speaker 1: to be true, because I'm certain expert in macroeconomics. I 253 00:14:32,360 --> 00:14:34,560 Speaker 1: think we can agree that we are in a recession 254 00:14:34,600 --> 00:14:38,880 Speaker 1: and it is going to be deep and potentially long live. 255 00:14:39,040 --> 00:14:42,160 Speaker 1: I think we can take that as a given. Well, 256 00:14:42,200 --> 00:14:45,560 Speaker 1: I I certainly happen to agree with you. Um, And 257 00:14:45,560 --> 00:14:47,360 Speaker 1: and so given that, well, what do we think is 258 00:14:47,360 --> 00:14:49,680 Speaker 1: going to happen? Because obviously what that does is it 259 00:14:49,680 --> 00:14:54,320 Speaker 1: puts it reduces that number of people that have discretionary 260 00:14:54,320 --> 00:14:58,160 Speaker 1: income and the ability to to invest in their own 261 00:14:58,200 --> 00:15:02,320 Speaker 1: well being. Um. You hit on something important for the people. 262 00:15:02,440 --> 00:15:06,400 Speaker 1: The the current business owners and operators in the wellness industry. 263 00:15:06,800 --> 00:15:10,880 Speaker 1: The vast majority of their clientele were already the affluent. 264 00:15:11,480 --> 00:15:13,560 Speaker 1: And what we saw in the Great recession of oh 265 00:15:13,600 --> 00:15:16,440 Speaker 1: seven or eight, o nine is that you imagine this 266 00:15:16,560 --> 00:15:21,720 Speaker 1: dual income professional couple and one partner has lost their 267 00:15:21,800 --> 00:15:25,480 Speaker 1: job and the other one has had their bonus taken away. Um, 268 00:15:25,520 --> 00:15:26,880 Speaker 1: you know what are they gonna do. Well, They're going 269 00:15:26,920 --> 00:15:30,080 Speaker 1: to defer that, you know, that Caribbean vacation. They're going 270 00:15:30,160 --> 00:15:34,760 Speaker 1: to maybe put off buying the new car, the home improvements. 271 00:15:34,920 --> 00:15:37,040 Speaker 1: Maybe they're not going to upsize to the bigger home. 272 00:15:38,000 --> 00:15:40,200 Speaker 1: But they're not putting off their health club. They're not 273 00:15:40,280 --> 00:15:43,760 Speaker 1: putting off their their exercise routine. In fact, what we 274 00:15:43,800 --> 00:15:46,280 Speaker 1: saw on the great recession of people actually doubled down 275 00:15:46,280 --> 00:15:49,400 Speaker 1: on it. And we saw that most of the big 276 00:15:49,440 --> 00:15:54,040 Speaker 1: brands that we know today in uh In Boutique Fitness 277 00:15:54,560 --> 00:15:58,160 Speaker 1: and Wellness, So Orange, their Fitness forty five Pure Bar 278 00:15:58,400 --> 00:16:03,120 Speaker 1: Bar three Daily Mess, that Bar Method, Yoga Works, Corpore Yoga, 279 00:16:03,640 --> 00:16:06,800 Speaker 1: most of them actually emerged in the middle of the 280 00:16:06,840 --> 00:16:11,120 Speaker 1: economic crisis. And in my conversations with the business leaders 281 00:16:11,200 --> 00:16:15,320 Speaker 1: of both the bigger brands as well as the the 282 00:16:15,520 --> 00:16:19,520 Speaker 1: strong local brands we call them the local tigers. UH 283 00:16:19,680 --> 00:16:23,720 Speaker 1: there their plan to invest coming out of this crisis, 284 00:16:24,640 --> 00:16:29,840 Speaker 1: and and they see an opportunity and so UH we 285 00:16:29,920 --> 00:16:32,640 Speaker 1: believe that the industry is actually going to re accelerate 286 00:16:33,320 --> 00:16:38,160 Speaker 1: quite quite quickly out of this. The question is what 287 00:16:38,280 --> 00:16:42,440 Speaker 1: are people going to be doing? Right, Well, you anticipate 288 00:16:42,480 --> 00:16:46,440 Speaker 1: in my next question, because what they I see them accelerating. 289 00:16:46,480 --> 00:16:50,560 Speaker 1: I agree with you to some extent, But unlike the 290 00:16:50,640 --> 00:16:53,440 Speaker 1: last crisis, which was a financial one, this is a 291 00:16:53,480 --> 00:16:58,120 Speaker 1: health crisis at its core, and human behavior has changed 292 00:16:58,200 --> 00:17:03,640 Speaker 1: and presumably will change on a relatively permanent basis. So 293 00:17:03,720 --> 00:17:08,360 Speaker 1: what does that acceleration look like. Well, it's clearly going 294 00:17:08,400 --> 00:17:12,399 Speaker 1: to be led by virtual experiences and and led by 295 00:17:12,520 --> 00:17:16,480 Speaker 1: an important qualifier because all of the data that we've 296 00:17:16,480 --> 00:17:18,879 Speaker 1: looked at and we've been researching, you know, in the 297 00:17:18,920 --> 00:17:21,760 Speaker 1: midst of this crisis, we've been we've been running polls 298 00:17:21,800 --> 00:17:24,639 Speaker 1: of of consumers and business owners to ask them what 299 00:17:24,680 --> 00:17:29,040 Speaker 1: their intentions are. The vast majority of consumers are saying, Now, 300 00:17:29,040 --> 00:17:33,400 Speaker 1: these are consumers that were already engaged in predominantly boutique 301 00:17:33,400 --> 00:17:36,680 Speaker 1: fitness through the Mind Body app. We asked them, first 302 00:17:36,720 --> 00:17:39,280 Speaker 1: of all, I have you adopted virtual practices, you know, 303 00:17:39,320 --> 00:17:42,399 Speaker 1: streaming video video on demand, and of course a large, 304 00:17:42,680 --> 00:17:45,200 Speaker 1: large percentage of the have done that. And the question, 305 00:17:45,240 --> 00:17:47,000 Speaker 1: of course is what do you plan to do after 306 00:17:47,119 --> 00:17:50,320 Speaker 1: the crisis? Lists, and you're able to return these businesses, 307 00:17:50,320 --> 00:17:54,199 Speaker 1: will you? The vast majority more than have said they 308 00:17:54,240 --> 00:17:59,560 Speaker 1: intend to return to their their face to face offline experiences, um, 309 00:17:59,600 --> 00:18:02,720 Speaker 1: and about half of those have said and I will 310 00:18:02,720 --> 00:18:07,080 Speaker 1: continue the virtual as a supplement conferment activity because even 311 00:18:07,080 --> 00:18:09,320 Speaker 1: somebody that was highly engaged was probably only going to 312 00:18:09,400 --> 00:18:11,800 Speaker 1: the studio a couple of times a week. So there's 313 00:18:11,800 --> 00:18:16,960 Speaker 1: plenty of opportunity to supplement that with the the accessibility 314 00:18:17,000 --> 00:18:21,359 Speaker 1: and affordability of the at home experience. And uh, you 315 00:18:21,359 --> 00:18:23,800 Speaker 1: know you're right. Like so my dad, we were. My 316 00:18:23,880 --> 00:18:27,479 Speaker 1: dad is eight years old and we uh, we got 317 00:18:27,600 --> 00:18:30,760 Speaker 1: him a personal trainer about six months ago. I wish 318 00:18:30,760 --> 00:18:32,960 Speaker 1: I could take credit for this was actually my wife's idea. 319 00:18:33,760 --> 00:18:37,680 Speaker 1: And he just loved his personal trainer, um and would 320 00:18:37,680 --> 00:18:39,840 Speaker 1: show up and this guy would would give him these 321 00:18:39,880 --> 00:18:44,080 Speaker 1: exercises designed for for for elders. You know, it's about 322 00:18:44,119 --> 00:18:48,640 Speaker 1: bent strength and balance and avoiding injury. Anyway, he's doing 323 00:18:48,680 --> 00:18:51,199 Speaker 1: it now on his iPad. My eighty eight year old 324 00:18:51,320 --> 00:18:57,359 Speaker 1: dad is taking live streaming classes and sessions on his iPad. 325 00:18:57,640 --> 00:19:00,800 Speaker 1: So this crisis has trained all of and how easy 326 00:19:00,840 --> 00:19:02,840 Speaker 1: it is to do that. And we're not going to 327 00:19:02,920 --> 00:19:08,679 Speaker 1: forget that easily. Um, but we don't believe that people 328 00:19:08,680 --> 00:19:11,119 Speaker 1: will lose their hungers and a face to face. In fact, 329 00:19:11,440 --> 00:19:15,120 Speaker 1: it may even be amplified in the years I had. Yeah, 330 00:19:15,400 --> 00:19:18,320 Speaker 1: I do wonder though, Rick, Just to challenge you on 331 00:19:18,359 --> 00:19:20,679 Speaker 1: this a little bit. You know, we talk a lot 332 00:19:21,119 --> 00:19:23,520 Speaker 1: about and we think a lot about the restaurant industry, 333 00:19:23,680 --> 00:19:27,440 Speaker 1: for instance, and you know, in the in the immediate 334 00:19:27,560 --> 00:19:29,960 Speaker 1: term and the short and maybe even to mid term, 335 00:19:30,920 --> 00:19:35,399 Speaker 1: basically being able to make ends meet, to survive. You 336 00:19:35,400 --> 00:19:40,560 Speaker 1: know that the business model is crimped at best and 337 00:19:41,720 --> 00:19:46,040 Speaker 1: devastated at worst. Ultimately, we are talking about when it 338 00:19:46,040 --> 00:19:49,520 Speaker 1: comes to boutique fitness, a lot of small businesses in 339 00:19:49,560 --> 00:19:53,480 Speaker 1: many cases, and I do wonder about the viability in 340 00:19:53,520 --> 00:19:57,600 Speaker 1: the short term basically being able to survive and then 341 00:19:57,720 --> 00:20:00,240 Speaker 1: on the other side, being able to find that right 342 00:20:00,359 --> 00:20:03,160 Speaker 1: mix of things to charge the right amount that make 343 00:20:03,280 --> 00:20:08,240 Speaker 1: them viable businesses. It's clearly going to be challenging, and 344 00:20:08,280 --> 00:20:11,400 Speaker 1: I think it is a pretty close analog to the 345 00:20:11,480 --> 00:20:16,040 Speaker 1: restaurants and the boutique fitness studios. These are both experiences 346 00:20:16,040 --> 00:20:20,240 Speaker 1: that that we prior to COVID, we're spending a lot 347 00:20:20,240 --> 00:20:24,840 Speaker 1: of time and money on and and so you know, 348 00:20:25,240 --> 00:20:27,359 Speaker 1: as I would call my econ one oh one class 349 00:20:27,400 --> 00:20:31,360 Speaker 1: in college, if you have a supply that's been crimped, 350 00:20:32,160 --> 00:20:34,880 Speaker 1: and the crimping is the right word. And let me 351 00:20:34,920 --> 00:20:37,280 Speaker 1: just add into that, I think this will be a 352 00:20:37,320 --> 00:20:41,520 Speaker 1: time in which many of these these boutique wellness studio 353 00:20:41,560 --> 00:20:45,240 Speaker 1: owners just throw in the towel uh and and it's 354 00:20:45,359 --> 00:20:47,119 Speaker 1: you know, this is the time when you go to 355 00:20:47,240 --> 00:20:49,360 Speaker 1: how committed them I really? How hard do I really 356 00:20:49,400 --> 00:20:52,920 Speaker 1: want to work for this? And so you know, perhaps 357 00:20:52,920 --> 00:20:55,760 Speaker 1: a quarter of the industry that we see today, of 358 00:20:55,840 --> 00:21:00,520 Speaker 1: the of the bricks and mortal locations we saw before COVID, 359 00:21:01,040 --> 00:21:03,400 Speaker 1: probably won't be there by the end of the year. 360 00:21:04,160 --> 00:21:07,119 Speaker 1: Um and and you know, keep in mind, by the way, 361 00:21:07,160 --> 00:21:09,880 Speaker 1: underlying thiss has always been this kind of like steady 362 00:21:09,920 --> 00:21:12,960 Speaker 1: flow of people opening up their doors and trying to 363 00:21:13,000 --> 00:21:14,760 Speaker 1: make a go of it. And you know, only half 364 00:21:14,800 --> 00:21:16,639 Speaker 1: of them are there two years later. So there's always 365 00:21:16,640 --> 00:21:21,000 Speaker 1: been this underlying natural turren. And what we've seen historically 366 00:21:21,080 --> 00:21:24,040 Speaker 1: is it once a business owner gets passed her second year, 367 00:21:24,760 --> 00:21:27,000 Speaker 1: well that's when she's if she's gotten that far, her 368 00:21:27,119 --> 00:21:30,520 Speaker 1: chances of long terms of long term uh flourishing are 369 00:21:30,520 --> 00:21:34,040 Speaker 1: actually quite hot because she's developed her following, she's perfected 370 00:21:34,040 --> 00:21:37,320 Speaker 1: her craft in her business model, and and those businesses 371 00:21:37,320 --> 00:21:41,640 Speaker 1: can go on for decades. So I think we'll see 372 00:21:41,640 --> 00:21:43,400 Speaker 1: it's like a shaking of the tree. We're gonna see 373 00:21:43,400 --> 00:21:46,520 Speaker 1: a lot of people just capitulate. And that's probably helpful 374 00:21:46,640 --> 00:21:48,920 Speaker 1: in the near term because what it's gonna do is 375 00:21:49,040 --> 00:21:51,760 Speaker 1: enabled those who are more committed to have a more 376 00:21:51,840 --> 00:21:55,280 Speaker 1: viable business model. And so now you take a spin 377 00:21:55,359 --> 00:21:57,600 Speaker 1: studio where there were thirty bikes and now they're can 378 00:21:57,640 --> 00:22:01,800 Speaker 1: only be twelve bikes to give this distancing um. Instead 379 00:22:01,840 --> 00:22:03,840 Speaker 1: of the classes being stacked back to back with a 380 00:22:03,840 --> 00:22:07,080 Speaker 1: five minute changeover, now you need fifteen minutes or twenty 381 00:22:07,080 --> 00:22:10,440 Speaker 1: minutes for it for a total wipe down and sanitation 382 00:22:10,520 --> 00:22:13,920 Speaker 1: of everything. You can't have people queuing. You can have 383 00:22:13,960 --> 00:22:16,520 Speaker 1: people just like mingling outside because there's no way to 384 00:22:16,640 --> 00:22:19,280 Speaker 1: maintain social distance when they're the next batch of people 385 00:22:19,280 --> 00:22:22,600 Speaker 1: are coming in. You add all that up and you 386 00:22:22,760 --> 00:22:26,200 Speaker 1: just don't have the capacity to deliver as many sessions 387 00:22:26,640 --> 00:22:30,119 Speaker 1: as you did pre COVID. You know what estimates if 388 00:22:30,160 --> 00:22:31,879 Speaker 1: I had to throw a dart on the wall, maybe 389 00:22:31,920 --> 00:22:37,760 Speaker 1: sixty capacity prior then prior to the crisis. So decon 390 00:22:37,840 --> 00:22:40,919 Speaker 1: one oh one. If we assume there's still sufficient demand, 391 00:22:41,600 --> 00:22:43,600 Speaker 1: If a quarter of the store fronts have gone away, 392 00:22:44,080 --> 00:22:46,440 Speaker 1: and if the store fronts remaining only have six of 393 00:22:46,480 --> 00:22:50,040 Speaker 1: their prior capacity, what happens to the price. It has 394 00:22:50,080 --> 00:22:54,320 Speaker 1: to go up and and and so I think the 395 00:22:54,359 --> 00:22:58,640 Speaker 1: price of a nice meal in you know, in Soho 396 00:22:58,800 --> 00:23:01,560 Speaker 1: is going to go up. I think the price of 397 00:23:01,640 --> 00:23:04,199 Speaker 1: a bootique wellness experience is going to go up. It 398 00:23:04,200 --> 00:23:07,880 Speaker 1: will be um. It will be something again that will 399 00:23:07,920 --> 00:23:10,280 Speaker 1: need to be in the early days at least highly 400 00:23:10,320 --> 00:23:14,480 Speaker 1: targeted at the affluent who who don't care if the 401 00:23:14,520 --> 00:23:18,840 Speaker 1: class costs or thirty five dollars or forty dollars. They 402 00:23:18,840 --> 00:23:22,240 Speaker 1: just want the class um. And I think you can 403 00:23:22,280 --> 00:23:24,920 Speaker 1: help ease the sting of that for those who aren't 404 00:23:24,960 --> 00:23:29,280 Speaker 1: as affluent because you could offer hybrid memberships. So you 405 00:23:29,440 --> 00:23:32,600 Speaker 1: have also the class has only twelve people in in 406 00:23:32,600 --> 00:23:34,560 Speaker 1: a spin class, but you've got a bike at home 407 00:23:34,600 --> 00:23:36,280 Speaker 1: and you connect U bike. And by the way, that 408 00:23:36,280 --> 00:23:38,080 Speaker 1: that's thing that Peloton is doing today is going to 409 00:23:38,119 --> 00:23:41,840 Speaker 1: get totally democratized. Those the ability to link up a 410 00:23:41,880 --> 00:23:46,840 Speaker 1: machine to a cloud server. Uh and mash up your 411 00:23:47,320 --> 00:23:51,720 Speaker 1: cardiovascular output to the oppositive machine that is now democratized 412 00:23:51,760 --> 00:23:54,520 Speaker 1: that we offer that capability to our customers at my Body. 413 00:23:54,800 --> 00:23:57,520 Speaker 1: It's called fit metrics, and you're gonna start seeing people 414 00:23:57,520 --> 00:24:01,080 Speaker 1: deploying us in their homes with a mere different providers. 415 00:24:01,600 --> 00:24:03,520 Speaker 1: So I could have a practice where I'm going into 416 00:24:03,600 --> 00:24:07,240 Speaker 1: the face to face experience maybe two or three times 417 00:24:07,240 --> 00:24:11,000 Speaker 1: a month, and I'm doing streaming class other times. You 418 00:24:11,040 --> 00:24:13,399 Speaker 1: could you could imagine hybrid memberships that give you a 419 00:24:13,400 --> 00:24:16,800 Speaker 1: certain amount of face to face experiences and then unlimited 420 00:24:16,800 --> 00:24:21,280 Speaker 1: access to streaming. You know, it's interesting. I mean I 421 00:24:21,880 --> 00:24:24,679 Speaker 1: have been thinking obviously a lot about this, and I 422 00:24:24,760 --> 00:24:29,119 Speaker 1: do think about that at home piece a lot. And 423 00:24:29,800 --> 00:24:32,760 Speaker 1: I think I've told you before that, you know, when 424 00:24:32,760 --> 00:24:36,000 Speaker 1: Peloton first came on the scene a few years ago, 425 00:24:36,840 --> 00:24:38,600 Speaker 1: we were at a moment where I thought, you know, 426 00:24:38,680 --> 00:24:41,840 Speaker 1: what doesn't make sense. That's a backward step. You know, 427 00:24:42,160 --> 00:24:45,000 Speaker 1: We've come out of the basement in many ways, and 428 00:24:45,080 --> 00:24:47,359 Speaker 1: we want to be in these boutiques. We want to 429 00:24:47,359 --> 00:24:50,199 Speaker 1: be around other people. I certainly, and I own this. 430 00:24:50,240 --> 00:24:54,199 Speaker 1: I've told John fully this Um the CEO of Belodon, 431 00:24:54,280 --> 00:24:58,000 Speaker 1: founder and CEO of Bellodon that. Uh, you know, I 432 00:24:58,040 --> 00:25:01,159 Speaker 1: think I missed in many ways the power of the 433 00:25:01,640 --> 00:25:04,000 Speaker 1: virtual community and the power of technology and all of this. 434 00:25:04,080 --> 00:25:06,560 Speaker 1: And you understand this a lot better than I do. 435 00:25:06,920 --> 00:25:10,640 Speaker 1: I do wonder to pick up exactly where you were 436 00:25:10,680 --> 00:25:15,520 Speaker 1: talking about, how quickly if we can even ballpark it? 437 00:25:15,720 --> 00:25:24,400 Speaker 1: Has this accelerated this online and at home trend sort 438 00:25:24,400 --> 00:25:27,159 Speaker 1: of which which I think was an underlying trend and 439 00:25:27,440 --> 00:25:30,280 Speaker 1: now feels like a mega trend. I mean, has COVID 440 00:25:30,320 --> 00:25:34,800 Speaker 1: accelerated that? Five years? Ten years? Like, help me, help 441 00:25:34,840 --> 00:25:39,320 Speaker 1: give me some context here. I think five years is 442 00:25:39,359 --> 00:25:41,439 Speaker 1: a good number because you know, as we were mapping 443 00:25:41,480 --> 00:25:46,000 Speaker 1: out this particular wave of fitness and thinking about what's 444 00:25:46,040 --> 00:25:48,880 Speaker 1: kind of next, you know, the natural arc is when 445 00:25:48,920 --> 00:25:51,359 Speaker 1: the the gen zs hit their thirties, Well that's going 446 00:25:51,400 --> 00:25:54,879 Speaker 1: to start happening in after about seven or eight years. 447 00:25:55,640 --> 00:25:57,560 Speaker 1: And so you know, it's not a clean cut off 448 00:25:57,600 --> 00:26:00,280 Speaker 1: visit and the generations are just a way to kind 449 00:26:00,320 --> 00:26:04,520 Speaker 1: of understand things in a broad perspective and are definitive necessarily, 450 00:26:04,960 --> 00:26:08,359 Speaker 1: but it certainly are disrupted by something like COVID. Right. 451 00:26:08,400 --> 00:26:11,000 Speaker 1: You know, it's like you think about like big big 452 00:26:11,000 --> 00:26:16,080 Speaker 1: economic shocks or you know, something of this scale obviously, 453 00:26:16,320 --> 00:26:20,639 Speaker 1: that generations are are deeply affected. All generations are deeply 454 00:26:20,640 --> 00:26:25,880 Speaker 1: affected by by something this this big and exogenous. Well 455 00:26:26,160 --> 00:26:27,920 Speaker 1: exactly in fact, you know, and if you go back 456 00:26:27,920 --> 00:26:30,560 Speaker 1: to read the original books, the books by Howard Strauss, 457 00:26:30,560 --> 00:26:33,080 Speaker 1: you know in the early nineties, the people who crafted 458 00:26:33,080 --> 00:26:37,760 Speaker 1: this whole generational theory. Um, that's exactly what they said, big, big, 459 00:26:37,800 --> 00:26:40,600 Speaker 1: disruptive events can change the timeline. And I think that's 460 00:26:40,640 --> 00:26:43,720 Speaker 1: happening here. And so one of the ways that's happening 461 00:26:44,240 --> 00:26:47,000 Speaker 1: is how and how instantly comfortable we're all getting with 462 00:26:47,080 --> 00:26:53,119 Speaker 1: virtualized UH and cloud connected experiences and and you know, 463 00:26:53,160 --> 00:26:55,520 Speaker 1: imagine how much harder this would have been if COVID 464 00:26:55,520 --> 00:26:59,280 Speaker 1: it hit five years ago. I mean, it would have been. 465 00:26:59,320 --> 00:27:03,120 Speaker 1: It is disruptive that this this been seamlessness with which 466 00:27:03,160 --> 00:27:06,639 Speaker 1: we all moved to zoom meetings and the existence of 467 00:27:06,720 --> 00:27:12,000 Speaker 1: Facebook Live and the existence of Instagram video, and of 468 00:27:12,040 --> 00:27:14,200 Speaker 1: course that's just the predominance of YouTube. All of these 469 00:27:14,240 --> 00:27:16,680 Speaker 1: things weren't there even five years ago to the degree 470 00:27:16,720 --> 00:27:21,040 Speaker 1: they are now. Um. And so I think this has 471 00:27:21,080 --> 00:27:23,920 Speaker 1: probably accelerated the timelines five to seven years to kind 472 00:27:23,920 --> 00:27:28,159 Speaker 1: of kind of land that one and and um, and 473 00:27:28,200 --> 00:27:30,240 Speaker 1: when you do this kind of disruptive ship, it's not 474 00:27:30,280 --> 00:27:32,159 Speaker 1: it's not a it's not a clean wave anymore, is it. 475 00:27:32,280 --> 00:27:35,880 Speaker 1: That's the wave just crashed on rocks. So there's this 476 00:27:35,680 --> 00:27:38,840 Speaker 1: this kind of messiness that it means a lot of 477 00:27:38,880 --> 00:27:43,480 Speaker 1: business turn um and a lot of rapid business creation. 478 00:27:44,080 --> 00:27:47,040 Speaker 1: So I think business formation in the space will accelerate. 479 00:27:48,560 --> 00:27:52,359 Speaker 1: I think clearly. You know, Peloton and mirror, Uh, this 480 00:27:52,440 --> 00:27:58,280 Speaker 1: is extremely fortunate for them and uh, the adoption rates 481 00:27:58,280 --> 00:28:01,520 Speaker 1: have been fantastic. Reality we all got to remember though, 482 00:28:01,600 --> 00:28:04,080 Speaker 1: is is they're not going to own it right this 483 00:28:04,080 --> 00:28:07,840 Speaker 1: This is way way too easy to do what they're doing. 484 00:28:08,680 --> 00:28:13,840 Speaker 1: And UM, there is something about having a relationship, even 485 00:28:13,880 --> 00:28:16,840 Speaker 1: if it's predominantly virtual, a relationship with your with your 486 00:28:16,880 --> 00:28:19,480 Speaker 1: teacher and your trainer. And yes, you can have that 487 00:28:19,560 --> 00:28:22,159 Speaker 1: to some degree through a peloton or a mirror, but 488 00:28:22,920 --> 00:28:26,600 Speaker 1: the idea of like a local and authentic experience with 489 00:28:26,760 --> 00:28:31,439 Speaker 1: your local teacher, your trainer, with a therapist, UH, that 490 00:28:31,600 --> 00:28:36,320 Speaker 1: allows you to actually meet them face to face periodically. UM. 491 00:28:36,359 --> 00:28:40,720 Speaker 1: That's something that the existing boutiquellness industry can provide. And 492 00:28:40,800 --> 00:28:46,040 Speaker 1: there are hundreds of thousands of those practitioners. So if 493 00:28:46,080 --> 00:28:48,160 Speaker 1: it was all going to be peloton and mirror, then 494 00:28:48,200 --> 00:28:50,480 Speaker 1: we would all be taking classes from the same few 495 00:28:50,560 --> 00:28:55,280 Speaker 1: hundred people, don't you know, in fifty people in a class, 496 00:28:56,400 --> 00:28:58,240 Speaker 1: I don't think it's gonna have quite the same appeal, 497 00:29:00,080 --> 00:29:04,719 Speaker 1: you know, And go ahead, No, I'll go ahead, and 498 00:29:04,760 --> 00:29:07,280 Speaker 1: I'll come back to that point. Well, now I'm going 499 00:29:07,320 --> 00:29:09,320 Speaker 1: to take a pretty radical shift in the conversation, So 500 00:29:09,360 --> 00:29:13,320 Speaker 1: finish what you're saying. Yeah, okay, So, so what we 501 00:29:13,440 --> 00:29:16,240 Speaker 1: see the opportunity in the sheltering at home? I have 502 00:29:16,280 --> 00:29:19,520 Speaker 1: a have I have a you know, two millennials and 503 00:29:19,600 --> 00:29:22,400 Speaker 1: two gen zs, and the gen zs have been teaching 504 00:29:22,400 --> 00:29:24,760 Speaker 1: me what they've been doing on their devices and computers 505 00:29:24,760 --> 00:29:29,320 Speaker 1: all day because I'm liking actually experiencing them. And so 506 00:29:29,920 --> 00:29:33,040 Speaker 1: this idea of these these kind of micro social circles 507 00:29:33,040 --> 00:29:36,720 Speaker 1: that they create globally is really fascinating. So people who 508 00:29:36,760 --> 00:29:40,600 Speaker 1: that are interested in a certain topic and the ability 509 00:29:40,640 --> 00:29:44,520 Speaker 1: to specialize in the formation of your socialist group. Uh, 510 00:29:45,200 --> 00:29:48,880 Speaker 1: my twenty year old is on a system called discord 511 00:29:49,200 --> 00:29:51,960 Speaker 1: and discord is it's kind of like slacks for everybody, 512 00:29:52,640 --> 00:29:56,080 Speaker 1: and you you create your own group. It's called a server, 513 00:29:56,840 --> 00:30:00,400 Speaker 1: and the group creates its own group rules, and they 514 00:30:00,440 --> 00:30:02,880 Speaker 1: socialized together. They decide if they're going to let somebody 515 00:30:02,920 --> 00:30:07,080 Speaker 1: into the group. UM. And my daughter is in fact 516 00:30:07,320 --> 00:30:10,160 Speaker 1: running a server with with thousands of members on it, 517 00:30:10,240 --> 00:30:13,040 Speaker 1: and she helped craft the purpose and the rules of 518 00:30:13,040 --> 00:30:16,400 Speaker 1: this group. You can imagine wellness developing in the same way. 519 00:30:17,000 --> 00:30:19,520 Speaker 1: So the relationships are no longer just restricted to the 520 00:30:19,560 --> 00:30:22,360 Speaker 1: people you have locally. You could be part of a 521 00:30:22,440 --> 00:30:26,800 Speaker 1: group that has represent representatives on every continent. Um. That 522 00:30:26,920 --> 00:30:32,480 Speaker 1: reaction by continent uh and um centered around a particular 523 00:30:33,320 --> 00:30:38,320 Speaker 1: set of interest, time of life professions, UM. And So 524 00:30:39,480 --> 00:30:41,840 Speaker 1: I think that the definition of what is local and 525 00:30:41,880 --> 00:30:47,280 Speaker 1: authentic changes and um and but that it's still a 526 00:30:47,320 --> 00:30:50,920 Speaker 1: massive opportunity and there's a whole new type of of 527 00:30:51,080 --> 00:30:54,520 Speaker 1: wellness business that emerges out of this well and and 528 00:30:54,600 --> 00:30:57,719 Speaker 1: to your point, I mean, and I think it is 529 00:30:57,760 --> 00:31:00,800 Speaker 1: something that as you look at the history of Peloton, 530 00:31:00,920 --> 00:31:03,360 Speaker 1: just taking that as an example, it is something that 531 00:31:03,400 --> 00:31:06,320 Speaker 1: I think Peloton opened a lot of our eyes to, 532 00:31:06,480 --> 00:31:12,360 Speaker 1: which is this notion of a a very meaningful community 533 00:31:12,480 --> 00:31:16,960 Speaker 1: being created among people who never had met each other 534 00:31:17,000 --> 00:31:20,320 Speaker 1: but had these commonalities. To that exact point, and uh, 535 00:31:20,320 --> 00:31:23,440 Speaker 1: you know, I remember going to Peloton homecoming last year, 536 00:31:23,640 --> 00:31:26,920 Speaker 1: last May and seeing all these people sort of come 537 00:31:26,920 --> 00:31:29,040 Speaker 1: in who had never physically met each other and yet 538 00:31:29,320 --> 00:31:31,920 Speaker 1: felt deeply connected to each other because they had taken 539 00:31:31,920 --> 00:31:34,240 Speaker 1: the same class, and they had had found each other 540 00:31:34,800 --> 00:31:38,280 Speaker 1: and deepen their relationship virtually on Facebook and other social 541 00:31:38,320 --> 00:31:40,720 Speaker 1: media platforms. And I do as you say, it's a 542 00:31:40,800 --> 00:31:44,760 Speaker 1: really interesting point that Peloton and Mirror and others don't 543 00:31:44,760 --> 00:31:49,240 Speaker 1: actually own that concept. They helped pioneer it to some extent, 544 00:31:49,280 --> 00:31:51,560 Speaker 1: but it's going to be much bigger, you know. One 545 00:31:51,560 --> 00:31:55,520 Speaker 1: of the things I also wonder about, and I'm talking 546 00:31:55,560 --> 00:31:58,520 Speaker 1: to you, you know, from my home in suburban New 547 00:31:58,600 --> 00:32:01,640 Speaker 1: York City and you're out on the West coast in 548 00:32:01,840 --> 00:32:05,200 Speaker 1: uh San Luis Obispo, where you've lived for a long time. 549 00:32:06,280 --> 00:32:08,640 Speaker 1: One of the things we are talking and thinking a 550 00:32:08,640 --> 00:32:15,840 Speaker 1: lot about these days is how demographic shifts and folks 551 00:32:15,840 --> 00:32:19,200 Speaker 1: moving out of cities or moving to different cities, how 552 00:32:19,280 --> 00:32:23,520 Speaker 1: that affects the broader economy. Given how you think about 553 00:32:23,560 --> 00:32:26,080 Speaker 1: the economy, and given that you're on the opposite side 554 00:32:26,120 --> 00:32:28,840 Speaker 1: of the country from me, how do you see that 555 00:32:29,200 --> 00:32:31,120 Speaker 1: playing out? I mean, this is coming on a week. 556 00:32:31,480 --> 00:32:34,400 Speaker 1: You and I are talking where Facebook, of all people, 557 00:32:34,640 --> 00:32:37,680 Speaker 1: the company has said half of their workforce is going 558 00:32:37,720 --> 00:32:40,600 Speaker 1: to be remote in the next ten years. I have 559 00:32:40,760 --> 00:32:44,240 Speaker 1: to imagine that that affects all the businesses we're talking 560 00:32:44,240 --> 00:32:49,800 Speaker 1: about two. Well, it's going to shift where they need 561 00:32:49,840 --> 00:32:53,720 Speaker 1: to be for sure. And you know another anecdote, So 562 00:32:53,760 --> 00:32:57,440 Speaker 1: my eldest year old daughter, she and her boyfriend, UH 563 00:32:57,840 --> 00:33:00,680 Speaker 1: around the same age. He's a s he's a senior 564 00:33:00,720 --> 00:33:03,200 Speaker 1: software engineer. She's a school teacher. They're both living in 565 00:33:03,200 --> 00:33:06,840 Speaker 1: San Francisco, UH in a house with six other people 566 00:33:06,920 --> 00:33:11,360 Speaker 1: like this, you know, classic millennial living in the tens. 567 00:33:12,320 --> 00:33:15,800 Speaker 1: Um they're done with that. And in fact, they just 568 00:33:15,800 --> 00:33:19,240 Speaker 1: signed a lease on their place, a new place in Morin. 569 00:33:19,280 --> 00:33:23,720 Speaker 1: They're going to get out of the city. Um, the 570 00:33:23,720 --> 00:33:25,880 Speaker 1: their comment was, and they just went up. They've been 571 00:33:25,880 --> 00:33:28,280 Speaker 1: sheltering with us for two months. They just went back 572 00:33:28,320 --> 00:33:31,360 Speaker 1: up into the city to check things out and there's 573 00:33:31,440 --> 00:33:34,280 Speaker 1: just lots of space for rent already and the rents 574 00:33:34,320 --> 00:33:37,760 Speaker 1: are dropping. So I think it's one of the things 575 00:33:37,760 --> 00:33:39,680 Speaker 1: that I as a gen x er, I found fascinating 576 00:33:39,720 --> 00:33:42,560 Speaker 1: by millennials that they that they they love this living 577 00:33:42,640 --> 00:33:46,080 Speaker 1: right in these high density neighborhoods, which is something my 578 00:33:46,120 --> 00:33:49,760 Speaker 1: generation like just didn't didn't look like. Our dreams were 579 00:33:49,880 --> 00:33:54,680 Speaker 1: around white picket fences and green grass law. And I 580 00:33:54,720 --> 00:33:57,080 Speaker 1: think there's a real chance that Dad has permanently shifted 581 00:33:57,120 --> 00:34:01,600 Speaker 1: as well. Um this As as tough as this was 582 00:34:01,680 --> 00:34:03,960 Speaker 1: for those of us in suburbia, it was much tougher 583 00:34:03,920 --> 00:34:07,360 Speaker 1: around those people living in uh in the downtown. Are 584 00:34:07,440 --> 00:34:09,520 Speaker 1: you know, I don't, Yeah, I agree. I don't even 585 00:34:09,520 --> 00:34:11,680 Speaker 1: think it's close. I mean in terms of you know, again, 586 00:34:11,719 --> 00:34:15,200 Speaker 1: I'm talking to you from Westchester County, and my I 587 00:34:15,239 --> 00:34:21,080 Speaker 1: can tell you, like, definitively, my experience has been so 588 00:34:21,160 --> 00:34:24,400 Speaker 1: starkly different from people who are living in an apartment 589 00:34:24,840 --> 00:34:27,040 Speaker 1: in New York City, especially if they have a family. 590 00:34:27,120 --> 00:34:29,279 Speaker 1: You know, the idea that I can go for a walk, 591 00:34:29,360 --> 00:34:33,040 Speaker 1: that I can you know, call you from my back porch, 592 00:34:33,160 --> 00:34:36,160 Speaker 1: wolve birds chirping in the background, and all these different things, 593 00:34:36,320 --> 00:34:40,279 Speaker 1: it is radically radically, uh radically different. Well, as we 594 00:34:40,440 --> 00:34:42,359 Speaker 1: as we wrap up, I mean, and you've been giving 595 00:34:42,360 --> 00:34:44,880 Speaker 1: me such good, such a good sense of this already, 596 00:34:44,880 --> 00:34:48,600 Speaker 1: but I do wonder because, as you've demonstrated to this conversation, 597 00:34:48,600 --> 00:34:52,760 Speaker 1: you're an incredibly thoughtful guy. You have an understanding of history, 598 00:34:53,560 --> 00:34:56,799 Speaker 1: and and I do wonder how do you think this 599 00:34:56,840 --> 00:34:59,960 Speaker 1: has changed you? This experience has changed you because you've 600 00:35:00,000 --> 00:35:04,120 Speaker 1: built this business, you sold it, um, you've continued to 601 00:35:04,160 --> 00:35:06,799 Speaker 1: build it. You think about your product. But but how 602 00:35:06,800 --> 00:35:09,239 Speaker 1: do you think it's changed you as a human? Go out? 603 00:35:09,400 --> 00:35:12,880 Speaker 1: First of all, it's it has underscored to me the 604 00:35:12,920 --> 00:35:15,759 Speaker 1: most the most important things of life to not take 605 00:35:15,800 --> 00:35:21,640 Speaker 1: for granted one's own health. Um, the pointlessness of material 606 00:35:21,680 --> 00:35:26,239 Speaker 1: possessions if the rest of your life isn't isn't in order? Um. 607 00:35:26,400 --> 00:35:31,440 Speaker 1: For me, ah, you know, I feel incredibly fortunate. You know, 608 00:35:31,520 --> 00:35:35,319 Speaker 1: my my economic well being isn't isn't at risk in 609 00:35:35,320 --> 00:35:39,359 Speaker 1: this situation. Um, this has certainly put my business under 610 00:35:39,400 --> 00:35:44,480 Speaker 1: severe challenge. But there are many, many, many other people 611 00:35:44,480 --> 00:35:47,960 Speaker 1: that are going to be really suffering in the years ahead. 612 00:35:48,800 --> 00:35:53,000 Speaker 1: And so for me, my wife and I were a 613 00:35:53,040 --> 00:35:56,760 Speaker 1: lot of thinking about how can we help? Uh? You know, Oprah, 614 00:35:56,760 --> 00:35:58,640 Speaker 1: I just put out a call. But really interesting when 615 00:35:58,680 --> 00:36:00,839 Speaker 1: she's just done, she's you know, giving quite a bit 616 00:36:00,880 --> 00:36:03,399 Speaker 1: of money already to cause it. She's saying, those who 617 00:36:03,560 --> 00:36:05,880 Speaker 1: those of means are going to need to step up 618 00:36:07,719 --> 00:36:14,280 Speaker 1: because our society matters far more than our our personal wealth, 619 00:36:15,280 --> 00:36:17,680 Speaker 1: and uh, you know, you can't take it with you. 620 00:36:18,440 --> 00:36:20,880 Speaker 1: So when we see a crisis like this, it is 621 00:36:21,440 --> 00:36:26,359 Speaker 1: interrupted so many people's lives, uh and has caused great 622 00:36:26,400 --> 00:36:30,799 Speaker 1: suffering for people. Uh. It helps you recognize that. And 623 00:36:30,840 --> 00:36:34,160 Speaker 1: so for me personally, I've always cared a great deal 624 00:36:34,760 --> 00:36:39,840 Speaker 1: about socio economic equality, for people to have equal access 625 00:36:39,960 --> 00:36:46,160 Speaker 1: to two opportunities, to health care, to education. UM. This 626 00:36:46,239 --> 00:36:48,200 Speaker 1: makes me motivated to double down on that because I 627 00:36:48,239 --> 00:36:50,640 Speaker 1: don't want to live in a world like some verbra 628 00:36:50,800 --> 00:36:53,000 Speaker 1: country where I'm you know, my kids and I are 629 00:36:53,040 --> 00:36:57,839 Speaker 1: affluent and we're living behind walls with Concertino were on top. Uh. 630 00:36:58,160 --> 00:37:00,840 Speaker 1: You know, if you've seen countries like that, it's it's abysmal. 631 00:37:01,280 --> 00:37:03,359 Speaker 1: You know, you have to hire private securities, your kids 632 00:37:03,400 --> 00:37:06,520 Speaker 1: can get to school. UM, that's not a world I 633 00:37:06,560 --> 00:37:10,480 Speaker 1: want to live in. So it has sharpened my focus 634 00:37:10,640 --> 00:37:13,759 Speaker 1: on those issues. Let's let's fix the societal issues we 635 00:37:13,840 --> 00:37:20,680 Speaker 1: had before, um, while at the same time creating an 636 00:37:20,680 --> 00:37:23,839 Speaker 1: exciting vision for the future, so that the younger generations 637 00:37:23,880 --> 00:37:27,399 Speaker 1: can be excited about where we're going and that there's 638 00:37:27,440 --> 00:37:30,640 Speaker 1: economic mobility for those that are that are hard working 639 00:37:30,640 --> 00:37:33,520 Speaker 1: and talented and want to achieve in their lives. Yea, 640 00:37:33,640 --> 00:37:38,440 Speaker 1: so so it's refocused me on that. Well, it definitely 641 00:37:38,520 --> 00:37:41,359 Speaker 1: feels like we are at all sorts of intersections and 642 00:37:41,800 --> 00:37:45,080 Speaker 1: pivot points, and the decisions that we make right now 643 00:37:46,040 --> 00:37:49,200 Speaker 1: over the next few months even are going to have 644 00:37:49,520 --> 00:37:52,799 Speaker 1: a really strong determination, maybe in a way that you 645 00:37:52,840 --> 00:37:55,759 Speaker 1: and I have never seen in our lifetime. So so 646 00:37:55,840 --> 00:37:58,600 Speaker 1: grateful to you for spending some time with me. Richs Olmeyer. 647 00:37:58,960 --> 00:38:00,759 Speaker 1: I feel like this was long of do and in 648 00:38:00,800 --> 00:38:03,480 Speaker 1: some cases like we've had some some good conversations over 649 00:38:03,520 --> 00:38:06,040 Speaker 1: the years that we've never really been able to, uh, 650 00:38:06,040 --> 00:38:08,120 Speaker 1: to go deep like this, And I'm sorry it took 651 00:38:08,120 --> 00:38:11,480 Speaker 1: a pandemic to do it, but UM really enjoyed it, 652 00:38:11,560 --> 00:38:13,160 Speaker 1: and I hope to see you on one of these 653 00:38:13,200 --> 00:38:15,279 Speaker 1: coasts before too long. Thank you, Jason, Well, I really 654 00:38:15,280 --> 00:38:17,759 Speaker 1: appreciate the work that you're doing and UH and UH 655 00:38:17,960 --> 00:38:20,719 Speaker 1: have enjoyed the conversation. And that was my conversation with 656 00:38:20,880 --> 00:38:25,320 Speaker 1: Rick Stollmeyer, CEO, co founder of Mind Body. Really loved 657 00:38:25,360 --> 00:38:27,759 Speaker 1: catching up with him. We've known each other for a 658 00:38:27,800 --> 00:38:31,120 Speaker 1: few years. I've been an admirer of him and his 659 00:38:31,320 --> 00:38:33,960 Speaker 1: work and can't wait to read his book when that 660 00:38:34,000 --> 00:38:36,320 Speaker 1: comes out. Also can't wait to see what his company 661 00:38:36,560 --> 00:38:38,960 Speaker 1: and obviously the fitness industry, looks like. On the other 662 00:38:39,000 --> 00:38:42,560 Speaker 1: side of this, you've been listening to Bloomberg Business of Sports, 663 00:38:42,640 --> 00:38:47,480 Speaker 1: the Monday Podcast edition. We're here every week Monday, Wednesday 664 00:38:47,560 --> 00:38:49,640 Speaker 1: and Thursday with some of the most interesting and we 665 00:38:49,680 --> 00:38:53,760 Speaker 1: hope informative conversations you hear about the business of sports. 666 00:38:53,760 --> 00:38:56,719 Speaker 1: I'm Jason Kelly. Check me out on Twitter at Jason 667 00:38:56,800 --> 00:38:57,360 Speaker 1: Kelly News.