Peloton Says Apple's Privacy Rules Limit Its Ability to Gain Subscribers

Peloton has become the latest company to blame Apple's ad-related privacy changes in iOS for negatively impacting its business, according to a new report by Bloomberg's Mark Gurman.

peloton logo
Best known for its at-home exercise equipment and online fitness classes, Peloton blamed the App Tracking Transparency (ATT) rules Apple introduced in iOS 14.5 for making it more difficult to add new subscriptions to its services by targeting online shoppers based on their interests.

The company made the claim this week in its latest earnings call, in which it cited slower than expected post-pandemic economic re-openings, before cutting its annual revenue forecast by as much as $1 billion, while lowering its projections for subscribers and profit margins.

Peloton said it now expects sales of $4.4 billion to $4.8 billion in the fiscal year ending June 2022, down from the $5.4 billion it predicted less than three months ago.

On devices running iOS 14.5 and later, Apple requires that apps ask for users' permission to track them across other apps and websites. Under its ATT framework, users are able to choose whether they wish to be tracked for ads or other marketing purposes.

"Some apps have trackers embedded in them that are taking more data than they need," Apple explains in a promotional video. "Sharing it with third parties, like advertisers and data brokers... This has been happening without your knowledge or permission. Your information is for sale. You have become the product."

Apple was on the receiving end of similar complaints last month from Mark Zuckerberg, who blamed Apple's privacy changes for lower-than-expected quarterly growth during an earnings call for Meta, the company formerly known as Facebook. The Meta CEO claimed the changes "not only [negatively affect] our business, but millions of small businesses in what is already a difficult time for them in the economy."

According to one report, Apple has cost social media companies including Meta, Twitter, Snapchat, and YouTube, nearly $10 billion in revenue in the second half of 2021. But Peloton has more to be concerned about when it comes to Apple, which this week expanded Fitness+, its own home fitness service offering, to 15 additional countries.

Peloton shares have dropped nearly 20% since Apple showcased new Apple Fitness+ features at its September event. In a clear sign of investor unease at Apple's creep into the fitness market, reports earlier in the week linked a dip in Peloton shares to a patent approval for Apple's Fitness+ app, which features HIIT, Yoga, Core, and other workouts taught by trainers, similar to Peloton classes.

Top Rated Comments

MecPro Avatar
14 months ago
Good.

I don’t feel like I need targeted ads and companies should stop acting like we HAVE to have them.
Score: 80 Votes (Like | Disagree)
Heat_Fan89 Avatar
14 months ago
So if the story is right, Peloton is blaming Apple but the customer has the final say whether they want to be tracked or not. If they don’t, it’s not Apple’s fault and their privacy guidelines are working as intended.
Score: 77 Votes (Like | Disagree)
darkpaw Avatar
14 months ago
Apple gave us the ability to make a decision to protect our privacy. If people have taken up that option then that's a good thing. There is nothing in the world allowing private companies to have access to our private data by dint of them just wanting it.
Score: 38 Votes (Like | Disagree)
velocityg4 Avatar
14 months ago
Seems more like they've saturated the market for people willing to pay $39 a month for a video workout service. That's the US average gym membership. Without a place to workout or equipment included.
Score: 34 Votes (Like | Disagree)
DekuBleep Avatar
14 months ago
Figure out how to gain customers without creeping into my data please.
Score: 34 Votes (Like | Disagree)
trvs Avatar
14 months ago
Idk there were plenty of successful companies before targeted advertising. Peleton, perhaps instead of blaming Apple you need a new marketing team.
Score: 31 Votes (Like | Disagree)

Related Stories

tim cook mark zuckerberg

Apple's Privacy Measures to Cost Facebook $10 Billion in 2022

Thursday February 3, 2022 12:30 am PST by
Facebook has said measures being taken by Apple on iOS that make it harder for platforms and apps to track users across other apps and websites will cost its business $10 billion in 2022. Facebook yesterday reported $33.67 billion in revenue, and while higher than expected, earnings per share were shy of analyst expectations. Facebook, renamed to Meta, also offered lower guidance for the...
oculus health app

Oculus Quest 2 Movement Data Will Sync With Apple Health App Starting in April

Thursday March 10, 2022 11:07 am PST by
Facebook parent company Meta today announced an upcoming fitness update for the Oculus Quest 2, which will allow fitness data captured during VR workouts to be integrated with the Apple Health app. Right now, when people exercise with interactive games like Liteboxer, Beat Saber, or Dance Central using the Oculus Quest 2, the data can only be viewed on the Oculus Mobile app on the headset...
generic tracking prompt green

Report: iOS Users Who Opt-Out of App Tracking Continue to Be Tracked by Facebook and Snapchat

Wednesday December 8, 2021 5:50 am PST by
"Loose" interpretations of Apple's privacy policies allow apps such as Facebook and Snapchat to continue tracking users for targeted advertising even when they have asked to not be tracked, The Financial Times reports. In May, Apple launched its App Tracking Transparency feature that allows users to opt-out of being tracked across apps and websites for advertising purposes. Seven months...
european parliament

EU Provisionally Agrees on Law That Would Force Apple to Allow Alternative App Stores, Sideloading, and iMessage Interoperability

Friday March 25, 2022 4:46 am PDT by
European lawmakers have provisionally agreed upon a new law that would force Apple to allow user access to third-party app stores and permit the sideloading of apps on iPhones and iPads, among other sweeping changes designed to make the digital sector fairer and more competitive. The European Council and European Parliament said on Friday they had reached a political agreement on the...
Apple fitness plus feature

Apple Fitness+ Starts Rolling Out in 15 Additional Countries

Wednesday November 3, 2021 8:42 am PDT by
Apple Fitness+, Apple's subscription-based fitness service, is now rolling out in 15 new countries, including Austria, Brazil, Colombia, France, Germany, Indonesia, Italy, Malaysia, Mexico, Portugal, Russia, Saudi Arabia, Spain, Switzerland, and the United Arab Emirates. Priced at $9.99 per month, or available as part of the Apple One Premier bundle that has also expanded to new countries,...
Apple fitness plus winter update collections yoga

Apple Announces Fitness+ Workout Collections and Time to Run [Updated]

Friday January 7, 2022 6:05 am PST by
Apple today announced Collections and Time to Run for Apple Fitness+, as well as expanded Time to Walk and Artist Spotlight suites. Collections are curated series of workouts and meditations from the Fitness+ library, providing users with a new way to get motivated, remain consistent, and make progress with their sessions. Fitness+ Collections include a suggested plan to help users make...
Instagram Feature 2

Instagram Limits Users' Ability to Limit How Much Time They Spend in the App

Tuesday February 22, 2022 2:52 am PST by
Instagram has quietly removed the ability for its users to limit their daily usage of the app to less than 30 minutes, reports TechCrunch. In 2018, Instagram introduced options in the app to set a daily time limit, with a reminder to be sent when that time limit is reached – useful for those who want to cut down on their social media usage. Originally, users were able to select a time...
craig wwdc 2021 privacy

Apple's Privacy Features Have Cost Social Media Companies Nearly $10 Billion in Revenue

Monday November 1, 2021 4:42 am PDT by
As a result of its privacy features, Apple has cost social media companies including Meta, formerly known as Facebook, Twitter, Snapchat, and YouTube, nearly $10 billion in revenue in the second half of 2021, according to an investigation by the Financial Times. The Financial Times found that most users have opted out of tracking using Apple's App Tracking Transparency (ATT) framework, a...

Popular Stories

iphone 14 pro hands snowflakes 1

Best Black Friday iPhone Deals Still Available

Wednesday November 23, 2022 1:55 pm PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2022 is no different. Even though Black Friday is officially over, we're still tracking notable offers on the iPhone 14 and iPhone 14 Pro devices from AT&T, Verizon, and T-Mobile. For even more savings, keep an eye on older models like the iPhone 13. Note: MacRumors is an...
General Black Friday Deals 2022 Green

All the Apple Black Friday Deals You Can Still Get

Friday November 25, 2022 4:40 am PST by
Although Black Friday is now technically over, many Apple products are still seeing major discounts through the weekend as we head into Cyber Monday. In this article, you'll find every Apple device with a notable Black Friday sale that's still available. We'll be updating as prices change and new deals arrive, so be sure to keep an eye out if you don't see the sale you're looking for yet. Note:...
ipad holiday bulbs

Best Black Friday iPad Deals Still Available

Thursday November 24, 2022 12:25 pm PST by
Black Friday deals have been in full swing for the better part of a month, and even with the shopping holiday officially over, we're still seeing solid discounts on Apple devices. We're highlighting the best sales for all of Apple's product lines, and in this article you'll find the best Black Friday sales on iPad, iPad Pro, iPad Air, and iPad mini. Note: MacRumors is an affiliate partner with ...
airpods pro 2

Apple Engineer Addresses Lack of Lossless Support on New AirPods Pro

Friday November 25, 2022 2:58 am PST by
An Apple engineer has addressed the lack of lossless audio support in the second-generation AirPods Pro in a new interview. Current Bluetooth technology in the AirPods lineup means that Apple's audio products do not support Apple Music Lossless audio. Apple has previously hinted that it may develop its own codec and connectivity standard that builds on AirPlay and supports higher quality...
mac imac snowflakes

Best Black Friday iMac and MacBook Deals Still Available

Thursday November 24, 2022 1:07 pm PST by
Our Black Friday coverage continues through the weekend with the best deals you can find on MacBook Pro, MacBook Air, and iMac. As with all Black Friday deals, we aren't sure how long any of these will last, and prices are always fluctuating, so if you see something you want, be sure to buy it soon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and...
maxresdefault

Nothing Phone 1 Displays AirPods Battery Level After Latest OS Update

Friday November 25, 2022 3:33 am PST by
Nothing Phone 1 users today began receiving the Nothing OS 1.1.7 update, which adds support for displaying the battery percentage of connected AirPods, amongst other improvements and bug fixes. If you own a Nothing Phone 1, you can check for the OTA update by going to Settings -> System -> System updates. Bear in mind that as support for displaying AirPods battery level is still an...
apple watch gold ornaments

Best Black Friday Apple Watch Deals Still Available

Wednesday November 23, 2022 9:31 am PST by
We're tracking all of the best Apple product discounts for Black Friday as they continue through the weekend, and the Apple Watch always makes a great gift around the holiday season, so you're guaranteed to find solid discounts right now. In this article, you'll discover the best Black Friday sales on Apple Watch Series 8, Apple Watch SE, and Apple Watch Ultra. Note: MacRumors is an affiliate...