1 00:00:00,720 --> 00:00:04,600 Speaker 1: This is Bloomberg Business of Sports. The world changing and 2 00:00:04,640 --> 00:00:06,840 Speaker 1: what are things we can do to transform a business 3 00:00:06,840 --> 00:00:09,719 Speaker 1: and engage our fans globally in different ways, people are 4 00:00:09,800 --> 00:00:12,680 Speaker 1: using their name and likeness to create more opportunities, more 5 00:00:12,720 --> 00:00:15,520 Speaker 1: stakes and companies. In order to turn the organization around, 6 00:00:15,560 --> 00:00:17,279 Speaker 1: we had to turn it around not only just on 7 00:00:17,440 --> 00:00:20,919 Speaker 1: baseball operations side, but other business operations side well and 8 00:00:21,079 --> 00:00:23,079 Speaker 1: any other sport is very difficult, but I like to 9 00:00:23,079 --> 00:00:26,560 Speaker 1: blog my horizons and be able to expand. Sports need 10 00:00:26,600 --> 00:00:29,040 Speaker 1: to be consumed a lot and not to the big 11 00:00:29,160 --> 00:00:33,440 Speaker 1: competitive advantage for in artual property holders of sports content 12 00:00:33,560 --> 00:00:37,920 Speaker 1: in the media landscape. Bloomberg Business of Sports from Bloomberg Radio. 13 00:00:39,600 --> 00:00:41,960 Speaker 1: Hi everyone, I'm Jason Kelly and I'm Mike Lynch and 14 00:00:42,240 --> 00:00:45,000 Speaker 1: Michael Barr And this is the Bloomberg Business of Sports 15 00:00:45,040 --> 00:00:47,479 Speaker 1: podcast where we explore the big money issues in the 16 00:00:47,520 --> 00:00:50,560 Speaker 1: world of sports. Well, guys, really excited about the show 17 00:00:50,600 --> 00:00:52,919 Speaker 1: today right in my wheelhouse. You know how much I 18 00:00:52,960 --> 00:00:56,240 Speaker 1: love fitness. Today delighted to be joined by Equinox Media 19 00:00:56,320 --> 00:01:00,360 Speaker 1: President and Chief operating Officer Simon Belsham. You heard that 20 00:01:00,440 --> 00:01:03,600 Speaker 1: name before. They are one of the leading brands, if 21 00:01:03,600 --> 00:01:07,160 Speaker 1: not the leading brand when it comes to fitness. They 22 00:01:07,160 --> 00:01:11,520 Speaker 1: are all over the map literally and figuratively when it 23 00:01:11,600 --> 00:01:17,760 Speaker 1: comes to high end fitness, increasingly pushing into the online space, 24 00:01:17,800 --> 00:01:21,759 Speaker 1: the app space, and that's where we find Simon. Simon, 25 00:01:21,840 --> 00:01:23,399 Speaker 1: really good to have you with us. We've got a 26 00:01:23,440 --> 00:01:26,399 Speaker 1: million questions for you. Um, I mean, first of all, 27 00:01:26,520 --> 00:01:28,640 Speaker 1: tell us a little bit about kind of where we 28 00:01:28,680 --> 00:01:31,840 Speaker 1: are in the world of fitness. You know, here we 29 00:01:31,920 --> 00:01:38,559 Speaker 1: are in late Maye, coming out of a pandemic. God willing, um, 30 00:01:38,640 --> 00:01:40,319 Speaker 1: so much has changed when it comes to the the world 31 00:01:40,319 --> 00:01:44,520 Speaker 1: of fitness. Set the stage for us, of course, and 32 00:01:44,760 --> 00:01:47,280 Speaker 1: thanks Jason and guys for having me on there on 33 00:01:47,280 --> 00:01:49,600 Speaker 1: the show today. It's great to be here. This is 34 00:01:49,600 --> 00:01:52,720 Speaker 1: an exciting time in the world of fitness. You know, 35 00:01:52,800 --> 00:01:56,880 Speaker 1: I think un group, we've always believed that the future 36 00:01:56,880 --> 00:02:01,200 Speaker 1: of fitness is this hybrid of digital and physical experiences, 37 00:02:01,960 --> 00:02:04,520 Speaker 1: and as we emerge from the pandemic, I think we're 38 00:02:04,560 --> 00:02:07,960 Speaker 1: starting to see those come together in a very unique way. 39 00:02:08,000 --> 00:02:09,840 Speaker 1: And and you know, just to give you a couple 40 00:02:09,840 --> 00:02:13,079 Speaker 1: of data points that clearly the pandemic created a lot 41 00:02:13,080 --> 00:02:16,480 Speaker 1: of sports trial of digital fitness. But as the clubs 42 00:02:16,480 --> 00:02:19,560 Speaker 1: and the studios have started to reopen, and thank goodness, 43 00:02:19,600 --> 00:02:21,880 Speaker 1: we've started to see some of the last mandates lifted. 44 00:02:22,639 --> 00:02:24,639 Speaker 1: We know that don't see that our members that are 45 00:02:24,760 --> 00:02:29,720 Speaker 1: using digital and physical together are actually working out more 46 00:02:30,600 --> 00:02:34,400 Speaker 1: members that were just using the clubs or digital apps 47 00:02:34,440 --> 00:02:37,200 Speaker 1: by themselves. And so, you know, we're very excited about 48 00:02:37,200 --> 00:02:41,160 Speaker 1: this moment. We're very excited about the opportunities and experiences 49 00:02:41,200 --> 00:02:44,799 Speaker 1: were able to create from members. Going from forwards from him, Simon, 50 00:02:44,840 --> 00:02:47,840 Speaker 1: I'm going to ask the question that some people like 51 00:02:48,000 --> 00:02:50,600 Speaker 1: me are thinking. Now. Jason, he's all chise old, and 52 00:02:50,680 --> 00:02:54,000 Speaker 1: he he looks like Dash Rip Rock and of course Mike, 53 00:02:54,400 --> 00:02:57,800 Speaker 1: you know he played in football and all this other stuff. 54 00:02:57,840 --> 00:03:01,080 Speaker 1: Now I'm built like Jackie Gleason. So now, what can 55 00:03:01,120 --> 00:03:05,079 Speaker 1: you do for me? When I say, listen, I want 56 00:03:05,120 --> 00:03:10,840 Speaker 1: to use the Equinox product, what can you do for me? Well, Michael, 57 00:03:11,080 --> 00:03:13,480 Speaker 1: one of the great things I think about this space 58 00:03:13,680 --> 00:03:17,800 Speaker 1: is that everyone's fitness journey is unique and different. Everyone's 59 00:03:17,840 --> 00:03:21,680 Speaker 1: body is different, everyone's physiology is different, everyone everyone's recovery 60 00:03:21,800 --> 00:03:25,440 Speaker 1: is different every day. And so as part of the 61 00:03:25,480 --> 00:03:31,560 Speaker 1: experience that we're creating is this personalization and a variety 62 00:03:31,600 --> 00:03:34,600 Speaker 1: of content that meets people where they are, and very 63 00:03:34,680 --> 00:03:36,720 Speaker 1: much how we think about it is that you know, 64 00:03:37,080 --> 00:03:39,920 Speaker 1: we're creating a product and experience that's for you whenever, 65 00:03:39,920 --> 00:03:42,600 Speaker 1: wherever you are and whenever you're ready, and just to 66 00:03:42,600 --> 00:03:44,920 Speaker 1: give you a bit of a sense of that, So 67 00:03:45,000 --> 00:03:47,760 Speaker 1: we have an integration with Whooped. I know you had 68 00:03:47,760 --> 00:03:50,160 Speaker 1: well and the Whoop team on the podcast recently as well. 69 00:03:51,440 --> 00:03:53,840 Speaker 1: And you know I got up this morning, my Whoop 70 00:03:53,920 --> 00:03:57,920 Speaker 1: told me that my recovery was good yesterday. Uh, and 71 00:03:58,040 --> 00:04:01,320 Speaker 1: it recommended a more intense workout for me this morning, 72 00:04:01,400 --> 00:04:04,280 Speaker 1: you know, a Soul cycle forty five minute class or 73 00:04:04,280 --> 00:04:09,080 Speaker 1: an Equalox sixty minute athletic conditioning class. It knows your 74 00:04:09,120 --> 00:04:12,720 Speaker 1: strain and if you had a difficult recovery day yesterday 75 00:04:12,760 --> 00:04:16,480 Speaker 1: and inter today, it probably recommends something that was more 76 00:04:16,520 --> 00:04:20,040 Speaker 1: about stretch and recovery, maybe with Tom Brady's TV twelve 77 00:04:20,200 --> 00:04:23,760 Speaker 1: or even just a meditation with Headstrong today. And so 78 00:04:23,800 --> 00:04:27,799 Speaker 1: what we believe in this hybrid experiences is it also 79 00:04:27,839 --> 00:04:30,120 Speaker 1: about how do we create things that are really personal 80 00:04:30,720 --> 00:04:33,200 Speaker 1: for you because your body and your physiology and your 81 00:04:33,279 --> 00:04:39,080 Speaker 1: journey is different from Jason's or Mike's or mine. So Simon, 82 00:04:39,120 --> 00:04:42,839 Speaker 1: this is Mike up in Boston. You called yourself recently 83 00:04:42,920 --> 00:04:45,159 Speaker 1: the HBO of fitness. What does what do you mean 84 00:04:45,160 --> 00:04:48,840 Speaker 1: by that? Yeah, it's a good it's a good question. 85 00:04:48,880 --> 00:04:51,440 Speaker 1: So we're one of the things that we believe about 86 00:04:51,520 --> 00:04:55,240 Speaker 1: digital fitness is the content really matters, and quality of 87 00:04:55,279 --> 00:04:57,920 Speaker 1: content really matters. Uh, you know, I think we all 88 00:04:58,000 --> 00:05:02,000 Speaker 1: can probably point to teachers or bad teachers in our life, 89 00:05:02,040 --> 00:05:04,359 Speaker 1: and I think it's the same in fitness. The difference 90 00:05:04,400 --> 00:05:07,359 Speaker 1: between a good instructor and a bad instructor is someone 91 00:05:07,360 --> 00:05:10,360 Speaker 1: who gets more out of you and leaves you wanting 92 00:05:10,400 --> 00:05:13,640 Speaker 1: to come back for more. And so we've focused a 93 00:05:13,720 --> 00:05:17,839 Speaker 1: lot on creating the best content in the fitness world. 94 00:05:17,880 --> 00:05:21,040 Speaker 1: We worked with the best brands, some which I mentioned, 95 00:05:21,080 --> 00:05:24,240 Speaker 1: but also Solid Core for pilates, and Stole Cycle for 96 00:05:24,320 --> 00:05:29,560 Speaker 1: beats riding, Rumble Boxing for for sort of boxing and strength. 97 00:05:30,080 --> 00:05:32,640 Speaker 1: But we've also you know, and we believe through all 98 00:05:32,680 --> 00:05:35,679 Speaker 1: of those brands we've got the best talent in the market. 99 00:05:36,279 --> 00:05:39,520 Speaker 1: But we've invested a lot in creating high quality content 100 00:05:39,560 --> 00:05:42,640 Speaker 1: production as well. We have an Emmy Award winning production team. 101 00:05:42,640 --> 00:05:45,880 Speaker 1: We use one of the old Daily show studios in 102 00:05:46,200 --> 00:05:49,800 Speaker 1: Manhattan to shoot most of our content, and so bringing 103 00:05:49,800 --> 00:05:53,920 Speaker 1: it together. We see that creating high quality content is 104 00:05:53,960 --> 00:05:57,280 Speaker 1: a critical part of your digital fitness journey, and so 105 00:05:57,320 --> 00:06:00,080 Speaker 1: that's how we think of ourselves as the HBO for this. 106 00:06:00,240 --> 00:06:05,159 Speaker 1: There there are no bad shows on HBO and so simon. 107 00:06:05,200 --> 00:06:09,719 Speaker 1: When you think about the journey to to get here, um, 108 00:06:09,760 --> 00:06:12,800 Speaker 1: you know, for every company there there twists and turns 109 00:06:12,800 --> 00:06:15,880 Speaker 1: along the way. Obviously the pandemic um you know, through 110 00:06:15,920 --> 00:06:19,600 Speaker 1: a renting into a lot of plans. Tell us about 111 00:06:19,640 --> 00:06:23,719 Speaker 1: sort of how this app especially and how the online 112 00:06:23,760 --> 00:06:26,880 Speaker 1: presence has evolved. What if you had to tweak along 113 00:06:26,920 --> 00:06:29,760 Speaker 1: the way, you had a version of this called various, 114 00:06:29,839 --> 00:06:33,080 Speaker 1: I believe, help us understand, you know kind of how 115 00:06:33,320 --> 00:06:36,080 Speaker 1: how the branding and the content, you know, kind of 116 00:06:36,160 --> 00:06:41,160 Speaker 1: changed and evolved over time. Yeah, you know, we've an 117 00:06:41,200 --> 00:06:44,080 Speaker 1: equal on screen. We we've always believed that the future 118 00:06:44,120 --> 00:06:48,040 Speaker 1: of fitness is this hybrid of digital and cysical experiences. 119 00:06:48,040 --> 00:06:50,400 Speaker 1: In fact, back in early twenty nine, team, before any 120 00:06:50,400 --> 00:06:53,359 Speaker 1: of us have even heard of COVID or anticipated anything 121 00:06:53,400 --> 00:06:55,479 Speaker 1: like this happening, we surveyed our members and at the 122 00:06:55,520 --> 00:06:59,080 Speaker 1: time of them told us that they were supplementing their 123 00:06:59,080 --> 00:07:01,680 Speaker 1: own club workout with a digital app. In some way, 124 00:07:01,720 --> 00:07:05,920 Speaker 1: and so we knew this behavior was there. Clearly, the 125 00:07:05,960 --> 00:07:10,080 Speaker 1: pandemic created a lot of force trial and digital fitness, 126 00:07:10,120 --> 00:07:13,400 Speaker 1: and so for us, we we launched our app to 127 00:07:13,800 --> 00:07:16,640 Speaker 1: our Equinox members when the clubs were shut and we 128 00:07:16,720 --> 00:07:18,560 Speaker 1: got a lot of learning from that. Over the last 129 00:07:18,600 --> 00:07:22,360 Speaker 1: year we were able to listen and learn from them 130 00:07:21,600 --> 00:07:24,560 Speaker 1: and being able to develop that. And one of the 131 00:07:24,600 --> 00:07:27,200 Speaker 1: ways is we initially launched it as as as you say, 132 00:07:27,200 --> 00:07:30,520 Speaker 1: the brand virus by Equinox, but quickly we learned that 133 00:07:30,600 --> 00:07:33,920 Speaker 1: actually it made more sense for our members and for 134 00:07:33,920 --> 00:07:38,280 Speaker 1: the proposition to use the Equinox brand more and so 135 00:07:38,280 --> 00:07:41,240 Speaker 1: at the start of this year we rebranded to Equinox Plus. 136 00:07:41,240 --> 00:07:43,880 Speaker 1: But really that's because we we believe this is one 137 00:07:44,000 --> 00:07:47,000 Speaker 1: part of that future of fitness experience, this combination of 138 00:07:47,560 --> 00:07:50,760 Speaker 1: digital meets physical and so what we're doing this summer 139 00:07:51,640 --> 00:07:54,400 Speaker 1: is we're bringing you know, the Equinox Club app, which 140 00:07:54,440 --> 00:07:56,440 Speaker 1: members have had for a number of years that helps 141 00:07:56,480 --> 00:08:00,840 Speaker 1: them check into clubs and book pt and book fitness classes. 142 00:08:00,880 --> 00:08:04,800 Speaker 1: We're bringing that together with the Equinox Cluss and from 143 00:08:04,840 --> 00:08:08,120 Speaker 1: that we all have what I believe is the only 144 00:08:09,360 --> 00:08:13,640 Speaker 1: digital meets physical app and platform and experience that exists 145 00:08:13,680 --> 00:08:15,520 Speaker 1: in the world. And so you know, if I get 146 00:08:15,600 --> 00:08:17,080 Speaker 1: up today and I want to go to a club, 147 00:08:17,160 --> 00:08:20,239 Speaker 1: I can book my group finness class, I can order smoothie. 148 00:08:20,240 --> 00:08:22,640 Speaker 1: When I get there, I can arrange my PT and 149 00:08:22,680 --> 00:08:24,560 Speaker 1: then when I get home in the evening, I can 150 00:08:24,600 --> 00:08:27,000 Speaker 1: do a stretch class with TP twelve, or go to 151 00:08:27,040 --> 00:08:30,720 Speaker 1: sleep to a headstrong meditation. And it's this ability to 152 00:08:30,880 --> 00:08:34,400 Speaker 1: bring all of that together in one place so that 153 00:08:34,480 --> 00:08:36,760 Speaker 1: you can track your fitness journey, you can track your 154 00:08:36,760 --> 00:08:40,520 Speaker 1: progress that we believe makes the biggest difference, and we've 155 00:08:40,520 --> 00:08:43,040 Speaker 1: heard that from our members over the last year, and 156 00:08:43,720 --> 00:08:47,760 Speaker 1: we're excited to build from that proposition and for for 157 00:08:47,800 --> 00:08:52,040 Speaker 1: everyone as we go forwards. Obviously, the brick and mortar 158 00:08:52,160 --> 00:08:57,400 Speaker 1: gim's were slammed hard wing COVID hit. Now that we're 159 00:08:57,440 --> 00:09:00,600 Speaker 1: hopefully on the back end of it and the brick 160 00:09:00,600 --> 00:09:03,480 Speaker 1: and mortars are starting to open back up again, will 161 00:09:03,520 --> 00:09:07,560 Speaker 1: they be bigger and stronger than ever, Bigger and stronger 162 00:09:07,559 --> 00:09:10,520 Speaker 1: than ever, you know, And we were excited about how 163 00:09:10,640 --> 00:09:13,800 Speaker 1: members are coming back to the clubs already were you know, 164 00:09:13,840 --> 00:09:17,400 Speaker 1: almost every day is breaking records for check ins um. 165 00:09:17,440 --> 00:09:20,679 Speaker 1: You know, sales have been consistently upon. You know, Harvey 166 00:09:20,720 --> 00:09:24,240 Speaker 1: talked a bit about increases in that last week and 167 00:09:24,280 --> 00:09:28,080 Speaker 1: the satisfaction we're seeing from our members, particularly for our 168 00:09:28,559 --> 00:09:31,959 Speaker 1: cleanliness standards and our hygiene standards, which we believe it 169 00:09:32,040 --> 00:09:34,920 Speaker 1: is going to be critical. So we're really excited about 170 00:09:34,960 --> 00:09:37,719 Speaker 1: what members are seeing if they come back. But more 171 00:09:37,760 --> 00:09:41,520 Speaker 1: than anything, we think this proposition of bringing these things 172 00:09:41,559 --> 00:09:44,319 Speaker 1: together is is going to be critical. You know, we 173 00:09:44,360 --> 00:09:46,640 Speaker 1: know our members lives are going to be different coming 174 00:09:46,640 --> 00:09:50,600 Speaker 1: out of COVID. The flexibility of work and life is 175 00:09:50,600 --> 00:09:54,080 Speaker 1: probably more than it was before. And so having something 176 00:09:54,120 --> 00:09:56,960 Speaker 1: that enables you to work out wherever you are and 177 00:09:57,000 --> 00:10:00,880 Speaker 1: whenever you're ready, we believe is very Houghton and is 178 00:10:01,000 --> 00:10:03,079 Speaker 1: and is different from anything else. And as I said, 179 00:10:04,559 --> 00:10:06,800 Speaker 1: we're seeing that with our members today. So members that 180 00:10:06,840 --> 00:10:11,600 Speaker 1: are using both are actually working out more than members 181 00:10:11,600 --> 00:10:14,720 Speaker 1: who are just checking in or just using the app 182 00:10:14,800 --> 00:10:18,199 Speaker 1: by itself. And this is a really for us compelling 183 00:10:18,880 --> 00:10:23,720 Speaker 1: stat that just points to where our members are going simon, 184 00:10:23,760 --> 00:10:26,760 Speaker 1: how successful have you been during COVID and where we 185 00:10:26,800 --> 00:10:33,520 Speaker 1: are right now retaining current members and recruiting new members. Yeah, 186 00:10:33,640 --> 00:10:35,839 Speaker 1: I mean I think we feel really good about where 187 00:10:35,840 --> 00:10:38,400 Speaker 1: we are and about how the world is opening up 188 00:10:38,400 --> 00:10:42,720 Speaker 1: and uh and an equonnoxes position within that we've we 189 00:10:42,800 --> 00:10:45,400 Speaker 1: often talk about this flight to quality. I think people 190 00:10:46,160 --> 00:10:49,720 Speaker 1: are more focused on health and wellness than they've ever 191 00:10:49,800 --> 00:10:52,240 Speaker 1: been before. And so I think the way that we 192 00:10:52,280 --> 00:10:55,760 Speaker 1: are positioned, that the operation that we have m I 193 00:10:55,800 --> 00:10:59,360 Speaker 1: think sets us up incredibly well for for this post 194 00:11:00,000 --> 00:11:03,360 Speaker 1: a good world. And so that combination of digital and 195 00:11:03,440 --> 00:11:07,760 Speaker 1: physical coming together m the the the content, the talent 196 00:11:08,320 --> 00:11:10,840 Speaker 1: um that we're able to bring to create those really 197 00:11:10,880 --> 00:11:15,560 Speaker 1: immersive experiences and the variety you know, which we talked about, 198 00:11:15,640 --> 00:11:19,120 Speaker 1: you know, you know, so Michael's journey around the ability 199 00:11:19,160 --> 00:11:22,280 Speaker 1: to personalize the experience. So we think these are core 200 00:11:22,320 --> 00:11:26,440 Speaker 1: foundational pillars that really set us up for success. So Simon, 201 00:11:27,040 --> 00:11:29,600 Speaker 1: let's talk if we can about sort of your your 202 00:11:29,640 --> 00:11:33,040 Speaker 1: typical member, because Equinox has always you know, been seen 203 00:11:33,400 --> 00:11:36,880 Speaker 1: as a high end proposition in many ways. You know 204 00:11:36,960 --> 00:11:40,079 Speaker 1: it it costs more and and the quality is higher 205 00:11:40,120 --> 00:11:43,040 Speaker 1: by all accounts, um you know, than than maybe your 206 00:11:43,080 --> 00:11:46,120 Speaker 1: typical big box Jim in many ways, you know, all 207 00:11:46,120 --> 00:11:48,640 Speaker 1: the way down to the types of products there that 208 00:11:48,679 --> 00:11:51,400 Speaker 1: are in the locker rooms, and you know, it is 209 00:11:51,440 --> 00:11:54,560 Speaker 1: a it's a high end experience. What have you learned 210 00:11:54,600 --> 00:11:58,480 Speaker 1: about kind of the segmentation, as it were, of the 211 00:11:58,520 --> 00:12:02,679 Speaker 1: market that either is the same you know here as 212 00:12:02,720 --> 00:12:08,040 Speaker 1: it was um or or how is it different? Tell 213 00:12:08,080 --> 00:12:12,560 Speaker 1: me about kind of where equinocs, especially from the from 214 00:12:12,600 --> 00:12:19,280 Speaker 1: the broader um hybrid perspective fits in and that segmentation. John, 215 00:12:19,320 --> 00:12:22,520 Speaker 1: I think one thing that's interesting for me about the 216 00:12:22,559 --> 00:12:28,080 Speaker 1: segmentation of our members and customers is this focus on 217 00:12:28,280 --> 00:12:32,600 Speaker 1: community is something that's really stood out over the last year, 218 00:12:32,640 --> 00:12:36,640 Speaker 1: and I think as we've been deprived of in real 219 00:12:36,679 --> 00:12:39,760 Speaker 1: life communities in many way, we really saw the need 220 00:12:39,920 --> 00:12:43,840 Speaker 1: for sharing experiences standout during the pandemic and that really 221 00:12:43,840 --> 00:12:47,280 Speaker 1: manifested itself in terms of live classes. I know there's 222 00:12:47,280 --> 00:12:49,560 Speaker 1: a study data each mind Body that showed before the 223 00:12:49,600 --> 00:12:53,000 Speaker 1: pandemic only seventh stem of people had taken a live class, 224 00:12:53,000 --> 00:12:56,720 Speaker 1: and that went up to over only halfway through the pandemic. 225 00:12:56,760 --> 00:13:00,800 Speaker 1: And so we quickly pivoted our proposition to to to 226 00:13:00,880 --> 00:13:04,640 Speaker 1: create those live experiences. But I think as we emerge 227 00:13:04,679 --> 00:13:07,400 Speaker 1: from the pandemic, this needs for communities even more, and 228 00:13:07,559 --> 00:13:12,080 Speaker 1: through our clubs and our studios connected by digital, we 229 00:13:12,120 --> 00:13:14,200 Speaker 1: want to create more of those for people, to connect 230 00:13:14,200 --> 00:13:18,120 Speaker 1: them to others like them and and to help them 231 00:13:18,120 --> 00:13:21,080 Speaker 1: on their journey. And then I think, you know, i'd 232 00:13:21,080 --> 00:13:25,280 Speaker 1: go back to everyone's journey's unique, and I know you know, 233 00:13:25,360 --> 00:13:29,760 Speaker 1: it's it's um. It's good and helpful at times to 234 00:13:29,760 --> 00:13:32,720 Speaker 1: to segment people, but really what we're trying to create 235 00:13:32,800 --> 00:13:37,040 Speaker 1: is a very personal, one to one experience that really 236 00:13:37,080 --> 00:13:39,439 Speaker 1: meets you wherever you are. And I think another thing 237 00:13:39,480 --> 00:13:41,520 Speaker 1: that stood out for us during the pandemic is this 238 00:13:41,679 --> 00:13:45,160 Speaker 1: increased focus on mental fitness and mental wellness. And as 239 00:13:45,200 --> 00:13:48,040 Speaker 1: we come to the end of Mental Health Awareness Month, 240 00:13:48,480 --> 00:13:51,000 Speaker 1: I think this is something that's really embedded itself in 241 00:13:51,080 --> 00:13:54,600 Speaker 1: people's routines much more than than ever was before. And 242 00:13:54,640 --> 00:13:59,080 Speaker 1: so through Headstrong, we've seen significant growth in that brand 243 00:13:59,120 --> 00:14:02,960 Speaker 1: and an engagement with content of that brand because the 244 00:14:03,040 --> 00:14:05,520 Speaker 1: more people now more than ever, that focus on mental 245 00:14:05,559 --> 00:14:09,280 Speaker 1: fitness as well as physical fitness is a critical part. 246 00:14:09,320 --> 00:14:12,680 Speaker 1: And so we see these really interesting friends within within 247 00:14:12,720 --> 00:14:15,280 Speaker 1: our customers and with our members. All Right, Simon, I'm 248 00:14:15,280 --> 00:14:17,319 Speaker 1: going to take this from a slightly different direction and 249 00:14:17,360 --> 00:14:19,640 Speaker 1: maybe asking in a slightly more pointed way, which is 250 00:14:20,280 --> 00:14:22,920 Speaker 1: and I remember talking to Harvey. Harvey speed Back, the 251 00:14:22,920 --> 00:14:25,640 Speaker 1: executive chairman of your company, about this a couple of 252 00:14:25,680 --> 00:14:28,520 Speaker 1: years ago that during the financial crisis, a lot of 253 00:14:28,520 --> 00:14:31,320 Speaker 1: people expected the financial crisis back in two thousand and eight, 254 00:14:31,560 --> 00:14:35,200 Speaker 1: a lot of people said expected from the outside, you 255 00:14:35,200 --> 00:14:37,560 Speaker 1: know what, I'm going to give up my expensive gym 256 00:14:37,600 --> 00:14:42,680 Speaker 1: membership like Equinox, especially as I've alluded to, it's one 257 00:14:42,720 --> 00:14:46,480 Speaker 1: of the higher end UH offerings out there, and that 258 00:14:46,600 --> 00:14:52,400 Speaker 1: didn't happen. And so I wonder how that has sort 259 00:14:52,400 --> 00:14:57,960 Speaker 1: of sustained through you know, sort of interesting economic time. Here, 260 00:14:59,000 --> 00:15:04,760 Speaker 1: is there a sense that remains that quality that people 261 00:15:04,960 --> 00:15:08,240 Speaker 1: essentially will pay for quality, that they will pay up 262 00:15:08,400 --> 00:15:13,000 Speaker 1: for an experience that is both personalized and seen to 263 00:15:13,160 --> 00:15:17,640 Speaker 1: be a higher quality proposition. Certainly, what we're seeing so 264 00:15:17,760 --> 00:15:20,920 Speaker 1: far is that there is absolutely a flight and a 265 00:15:21,000 --> 00:15:26,160 Speaker 1: movement to quality and personalization. But we also, through the 266 00:15:26,200 --> 00:15:29,240 Speaker 1: offering of what we're doing, are able to provide access 267 00:15:29,320 --> 00:15:33,400 Speaker 1: to this unlimited access to this this unrivaled collective brand 268 00:15:33,520 --> 00:15:37,120 Speaker 1: to more people. And so today you can become a member, 269 00:15:37,160 --> 00:15:39,400 Speaker 1: you get Equonocks Class as part of your membership, but 270 00:15:39,440 --> 00:15:42,240 Speaker 1: you can also access Equonocks Class if you're in a 271 00:15:42,280 --> 00:15:46,200 Speaker 1: city where that may not exist, where the clubs don't exist, 272 00:15:46,360 --> 00:15:50,080 Speaker 1: and still access the content and the talent and the 273 00:15:50,160 --> 00:15:52,760 Speaker 1: trainers that we have. And so we do see that 274 00:15:52,840 --> 00:15:55,040 Speaker 1: as more and more people focus on health and wellness, 275 00:15:55,080 --> 00:15:56,880 Speaker 1: that more and more of their budget will go to 276 00:15:56,920 --> 00:16:00,520 Speaker 1: health and wellness. And this, this movement to quality, to 277 00:16:00,720 --> 00:16:07,040 Speaker 1: standards and high degrees of motivation and instruction are going 278 00:16:07,080 --> 00:16:09,800 Speaker 1: to be important. So yeah, I I agree. That's you know, 279 00:16:09,880 --> 00:16:11,800 Speaker 1: that's an important part of how we fool are well 280 00:16:11,840 --> 00:16:16,160 Speaker 1: positioned for this new world. Have you found that your 281 00:16:16,240 --> 00:16:21,760 Speaker 1: business model has been ideal for the industry that you're 282 00:16:21,800 --> 00:16:27,720 Speaker 1: trying to set up? So when you say ideal, you 283 00:16:27,760 --> 00:16:32,000 Speaker 1: mean a more profitable is it has it been profitable 284 00:16:32,040 --> 00:16:35,480 Speaker 1: for you as it has? I mean, obviously everything takes 285 00:16:35,520 --> 00:16:39,840 Speaker 1: hard work, but is the model turning into profits for you? 286 00:16:39,880 --> 00:16:43,800 Speaker 1: Is what I'm trying to say. So I won't comment 287 00:16:43,880 --> 00:16:46,840 Speaker 1: and don't comment on the prositibility of the business, but 288 00:16:46,880 --> 00:16:49,840 Speaker 1: what I can say is that what we are creating 289 00:16:49,880 --> 00:16:54,040 Speaker 1: today is creating levels of engagement that I don't think 290 00:16:54,960 --> 00:16:58,280 Speaker 1: anyone else can can touch in terms of the number 291 00:16:58,280 --> 00:17:01,400 Speaker 1: of times that a member you know, is engaging with us, 292 00:17:01,920 --> 00:17:05,280 Speaker 1: both physically and digitously and through the breadth of what 293 00:17:05,320 --> 00:17:09,000 Speaker 1: they're doing. And we believe that member satisfaction, that member 294 00:17:09,040 --> 00:17:13,720 Speaker 1: experience is the most fundamental thing for for creating a 295 00:17:13,760 --> 00:17:16,040 Speaker 1: great business. And so I, you know, I do feel 296 00:17:16,240 --> 00:17:20,480 Speaker 1: really good about what we've created and what it's enabling 297 00:17:20,560 --> 00:17:22,080 Speaker 1: us to do as a as a company and as 298 00:17:22,080 --> 00:17:25,919 Speaker 1: a group. Simon so convinced me why I should to 299 00:17:25,960 --> 00:17:31,080 Speaker 1: write a Soul Cycle instead of a Power Time. Well, 300 00:17:31,520 --> 00:17:34,240 Speaker 1: first of all, I think, you know, the the the 301 00:17:34,640 --> 00:17:38,120 Speaker 1: content quality that we've talked about, you know, the immersive 302 00:17:39,600 --> 00:17:42,439 Speaker 1: experience that we're able to create through the app, the 303 00:17:42,440 --> 00:17:45,320 Speaker 1: way that we focused on content production. Note we at 304 00:17:45,320 --> 00:17:49,600 Speaker 1: the weekend on Someday, we did our first national Omni 305 00:17:49,760 --> 00:17:53,040 Speaker 1: channel event to celebrate ten years as Lady Gaga's Born 306 00:17:53,080 --> 00:17:56,680 Speaker 1: This Way Foundation, and we shot a live class from 307 00:17:56,680 --> 00:18:00,040 Speaker 1: Soul Cycle outside in Hudson Yards And just reading some 308 00:18:00,119 --> 00:18:03,320 Speaker 1: of the reviews from that afterwards, there were people writing 309 00:18:03,400 --> 00:18:06,399 Speaker 1: reviews saying this class brought me to tears. It was 310 00:18:06,440 --> 00:18:09,280 Speaker 1: the first time since being back in the studio and 311 00:18:09,680 --> 00:18:13,560 Speaker 1: in March that I've really felt so immersed in and 312 00:18:13,640 --> 00:18:16,680 Speaker 1: engaged in my fitness. And we see those reviews all 313 00:18:16,680 --> 00:18:19,919 Speaker 1: the time with the talent, with the music, with the 314 00:18:19,960 --> 00:18:22,919 Speaker 1: way that we bring that together. And you know, Soul 315 00:18:23,080 --> 00:18:27,680 Speaker 1: is about this combination of mind and body together is 316 00:18:28,000 --> 00:18:31,320 Speaker 1: mind altering fitness as we talk about with with Soul 317 00:18:31,359 --> 00:18:33,520 Speaker 1: at the moment, and no one else can bring that 318 00:18:33,600 --> 00:18:35,440 Speaker 1: to you with it. You know, we've got the twenty 319 00:18:35,520 --> 00:18:38,199 Speaker 1: years as experienced with the brands that enable us to 320 00:18:38,240 --> 00:18:42,760 Speaker 1: do that. And then the combination of the personalization you 321 00:18:42,800 --> 00:18:48,480 Speaker 1: get through Equinox, plus the connectivity with the studios, So 322 00:18:48,520 --> 00:18:52,040 Speaker 1: whether you're taking a class in a studio, outside on 323 00:18:52,080 --> 00:18:54,399 Speaker 1: the bike at home, you can track and you know 324 00:18:54,560 --> 00:18:57,400 Speaker 1: the progress of your of your fitness journey through all 325 00:18:57,400 --> 00:19:00,560 Speaker 1: of that. So I think it's a much more holistic experience. 326 00:19:00,640 --> 00:19:04,920 Speaker 1: It's a much more a motive experience that really connects 327 00:19:04,920 --> 00:19:07,760 Speaker 1: mind and mind and body. And I give you, I 328 00:19:07,880 --> 00:19:10,280 Speaker 1: give you a chance to test test it for a 329 00:19:10,320 --> 00:19:13,840 Speaker 1: few days and you can tell me what you think. 330 00:19:14,200 --> 00:19:16,879 Speaker 1: Um So, Simon, I mean sort of building on that 331 00:19:16,960 --> 00:19:20,200 Speaker 1: a little bit. I mean, the competitive landscape certainly has 332 00:19:20,320 --> 00:19:23,560 Speaker 1: changed over over the past few years, and and it's 333 00:19:24,119 --> 00:19:28,240 Speaker 1: no secret that the pandemic certainly accelerated a lot of 334 00:19:28,320 --> 00:19:30,840 Speaker 1: trends that were out there there was I think it's 335 00:19:30,880 --> 00:19:33,159 Speaker 1: fair to say a bit of a saturation when it 336 00:19:33,240 --> 00:19:37,080 Speaker 1: came to the boutique fitness side of the business. You're 337 00:19:37,119 --> 00:19:43,040 Speaker 1: increasingly seeing this platform approach take hold it in many ways. 338 00:19:43,040 --> 00:19:45,320 Speaker 1: You talked about some of the brands that you guys 339 00:19:45,359 --> 00:19:48,800 Speaker 1: have under your umbrella, you know, whether it's Soul Cycle, Blink, 340 00:19:49,240 --> 00:19:53,280 Speaker 1: Pure Yoga, um and and a number of others Solid 341 00:19:53,280 --> 00:19:57,880 Speaker 1: core um. Is that where we're going here? I mean 342 00:19:58,080 --> 00:20:02,520 Speaker 1: from your perspective, having watched you know, businesses build not 343 00:20:02,600 --> 00:20:04,680 Speaker 1: just in the fitness space, but beyond. You were the 344 00:20:04,720 --> 00:20:06,880 Speaker 1: president of jet dot com, which is obviously now part 345 00:20:06,920 --> 00:20:11,359 Speaker 1: of Walmart. You understand building platforms in many ways. Is 346 00:20:11,440 --> 00:20:13,800 Speaker 1: that where we're headed? Are we going to see further 347 00:20:13,880 --> 00:20:19,560 Speaker 1: consolidation in this market? Do you think so? I think 348 00:20:19,560 --> 00:20:23,040 Speaker 1: our business models will always follow where our members want 349 00:20:23,080 --> 00:20:26,560 Speaker 1: to go. And I do see that members are craving 350 00:20:26,680 --> 00:20:29,520 Speaker 1: more variety in what they do, and so it's incumbent 351 00:20:29,560 --> 00:20:32,360 Speaker 1: on a business to be able to provide that variety 352 00:20:32,480 --> 00:20:36,040 Speaker 1: to really personalize to them. And and that's why we 353 00:20:36,160 --> 00:20:39,760 Speaker 1: brought on Tom Brady's TV twelve business because we knew 354 00:20:39,800 --> 00:20:43,679 Speaker 1: that that stretch and recovery and that is more of 355 00:20:43,680 --> 00:20:46,080 Speaker 1: a focus for people now and they wanted that to 356 00:20:46,160 --> 00:20:49,480 Speaker 1: augment what they were doing, you know, in in in 357 00:20:49,920 --> 00:20:53,280 Speaker 1: hit workouts before. But over time we've definitely seen a 358 00:20:53,480 --> 00:20:56,960 Speaker 1: move with customers to know days off and it's something 359 00:20:57,000 --> 00:21:00,520 Speaker 1: we talk about a lot. But to achieve that, you 360 00:21:00,560 --> 00:21:03,240 Speaker 1: don't want to do the same thing every day. So 361 00:21:03,400 --> 00:21:07,080 Speaker 1: to meet those needs and enable customers members to have 362 00:21:07,920 --> 00:21:12,440 Speaker 1: those that that nowadays off ability and to feed that mentality, 363 00:21:12,800 --> 00:21:16,640 Speaker 1: you've got to have the variety. I think also this 364 00:21:16,880 --> 00:21:22,760 Speaker 1: connectivity of data and the platform meets you know, the 365 00:21:22,880 --> 00:21:27,480 Speaker 1: expectations people's expectations they've learned through other methods, through retail 366 00:21:27,560 --> 00:21:30,600 Speaker 1: and through restaurants and other areas where you know, maybe 367 00:21:30,600 --> 00:21:33,159 Speaker 1: on the channel has has moved faster than the fitness 368 00:21:33,160 --> 00:21:37,520 Speaker 1: world is they want a rarely seamless and integrated experience. 369 00:21:37,560 --> 00:21:39,600 Speaker 1: They don't want to turn up to an Equox club 370 00:21:39,960 --> 00:21:42,920 Speaker 1: and have a different experience than they do on the app, 371 00:21:42,960 --> 00:21:46,640 Speaker 1: and so you've got to create that seamlessness and platforms 372 00:21:47,240 --> 00:21:51,120 Speaker 1: enable you to do that. And then finally, I think 373 00:21:51,160 --> 00:21:53,040 Speaker 1: there's a lot of data out there. You know, we 374 00:21:53,119 --> 00:21:55,639 Speaker 1: talk a lot about wearables and there's a plethora of 375 00:21:55,680 --> 00:21:59,920 Speaker 1: wearables out there. Data without knowledge isn't really that health 376 00:22:00,840 --> 00:22:04,600 Speaker 1: And so again the platform being able to integrate healthcare 377 00:22:04,840 --> 00:22:09,199 Speaker 1: or whoop or others and then provide guidance around what 378 00:22:09,280 --> 00:22:12,360 Speaker 1: you do with that data again is really important. So 379 00:22:12,840 --> 00:22:14,840 Speaker 1: as I look at the future of fitness, as I 380 00:22:14,920 --> 00:22:17,480 Speaker 1: look at our business and the platform we're building, there 381 00:22:17,480 --> 00:22:19,919 Speaker 1: are analogies to these other industries as you as you 382 00:22:20,000 --> 00:22:23,400 Speaker 1: rightly say, but it really is about bringing those different 383 00:22:23,520 --> 00:22:28,800 Speaker 1: fragmented experiences together in one place to really help our 384 00:22:28,800 --> 00:22:34,000 Speaker 1: members get that very joint up view of their own fitness. German, Well, Simon, 385 00:22:34,080 --> 00:22:36,000 Speaker 1: it's been really good catching up with you. We really 386 00:22:36,040 --> 00:22:40,560 Speaker 1: appreciated president and CEO of Equinox Media. A lot ahead 387 00:22:40,640 --> 00:22:43,720 Speaker 1: when it comes to the world of fitness. We're getting 388 00:22:43,720 --> 00:22:47,240 Speaker 1: back into this world where some of the things were 389 00:22:47,240 --> 00:22:49,720 Speaker 1: doing live and some of the things and in person, 390 00:22:49,800 --> 00:22:51,479 Speaker 1: and some of the things you know, we still want 391 00:22:51,520 --> 00:22:54,159 Speaker 1: to do at home, and so these these offerings that 392 00:22:54,520 --> 00:22:57,120 Speaker 1: cover it all, uh, certainly are becoming more and more 393 00:22:57,160 --> 00:22:59,640 Speaker 1: appealing to folks. We we really appreciate. Thank you so much, 394 00:23:00,720 --> 00:23:05,159 Speaker 1: Thanks you, thank you. So this is the Bloomberg Business 395 00:23:05,160 --> 00:23:07,760 Speaker 1: of Sports podcast. I'm Michael bar You can follow me 396 00:23:07,800 --> 00:23:10,840 Speaker 1: on Twitter at Big Bar Sports and how Mike Lynch. 397 00:23:10,920 --> 00:23:13,359 Speaker 1: You can follow me at Lynch w CVB. And I'm 398 00:23:13,440 --> 00:23:15,920 Speaker 1: Jason Kelly. Find me at Jason Kelly News. We're here 399 00:23:15,960 --> 00:23:19,200 Speaker 1: each and every Monday, Wednesday and Thursday. Through our podcast 400 00:23:19,280 --> 00:23:21,879 Speaker 1: exploring the world of money in sports. You're listening to 401 00:23:21,880 --> 00:23:25,399 Speaker 1: Bloomberg Business of Sports on Bloomberg Radio around the world 402 00:23:25,480 --> 00:23:27,840 Speaker 1: and online wherever you get your podcasts.