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Since Jack LaLane opened the first U.S. health club in 1939 the industry has grown to 40k American clubs selling 60M memberships in 2018. In the ten years since Fitbit introduced it's first Fitness Tracker and Apple released the iPhone 3G, 100M American's have purchased a fitness band and 150M have downloaded at least one of the +300M health and fitness apps.

+/-50% yearly member attrition and avg net profit of 3-5% present the health club industry with major challenges. Those seem minor compared to the rapid increase of competition in the health and fitness app and device markets (+200 new apps / day), with significantly lower user retention rates (30-day ~2.3%), problems that are only compounded by slowing growth (2017-18 9%), increasing CCAC, and decreasing ARPU. To put this in perspective, 62% have less than 1,000 MAU, 21% less than 10,000 MAU, and only 7$ have more than 50,000 MAU. 2017 U.S. ARPU for Health and Fitness Apps was $19.70 or $985,000.00 USD annual gross revenue for thoes in the top 7%.

Despite the growth in both the physical and digital fitness markets, in 2016 1/3 of the global population was overweight (17%) or obese (13%). The prevelence of obesity nearly trippled from 1975 to 2016 and it is projected that as many as 44% of the populaton will be obese by 2030.



As products have gone from being delivered in a box to being delivered over the Internet, there’s been a dramatic shift in how customers consume, demand, and interact with products. This fundamentally changes how products need to be built and how we measure performance.

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