Should Peloton Be More Like Netflix?
Peloton's (NASDAQ: PTON) new CEO, Barry McCarthy, spent some time at Netflix (NASDAQ: NFLX) as the CFO of the streaming pioneer from 1999 to 2010. Peloton shareholders are hoping that the monster success of his prior company, whose shares have skyrocketed over 2,200% over the past decade, can be translated to his new gig.
McCarthy could implement two worthwhile strategic moves to make the at-home fitness leader more like Netflix. They could boost the chances for Peloton to turn things around and once again become a thriving business.
While Peloton's products and services are currently offered in international markets, including Canada, the U.K., Germany, and Australia, the bulk of sales (93% in fiscal 2021) were derived in North America, mostly in the U.S. Netflix, on the other hand, got 44% of its revenue in 2021 from the U.S. and Canada, showcasing its global standing. To be fair, the streaming juggernaut is later in its growth story than Peloton is right now. But it shows that there is still massive untapped potential for the fitness business to penetrate foreign markets.
Source Fool.com
