Corporate investors throw their money at smart business models that fill a critical need, so it is not a surprise to learn that Beachbody has recently benefited from solid investor attention. The company was founded by Carl Daikeler in the 1990s with a business model centered around selling workout videos. Specifically, customers could buy a video from an extensive library of options, and the video could be enjoyed indefinitely. This was a smart alternative to the typical gym experience, but consumer demand and interest can change dramatically when the gyms’ doors are tethered. This is what happened during the COVID-19 outbreak when shutdowns forced gyms to lock their doors for several months.
Beachbody was poised to potentially increase its customer base on a short-term basis by selling videos to the displaced gym members, but this was not ideal for Carl Daikeler. Daikeler wanted to earn their regular business and improve the experience that it provided to established customers. As a result, the company started selling a monthly subscription for unlimited access to its video library. The video library includes more than 1,500 unique titles, and these are programs that appeal to children and adults regardless of fitness level. This strategic move enabled the company to expand its customer base, to meet its customers’ evolving needs and to generate a steady influx of revenue.
Streaming video content is not the only revenue line that Beachbody takes advantage of. This company also controls the Shakeology nutritional drink line. These shakes are offered in several flavors, and they are intended to be a nutrient-packed meal replacement. Because of their special design, the Shakeology drinks ultimately can encourage reduced caloric intake and increased caloric burn through a higher energy level.
While Beachbody has consistently been a successful company, its new business model has taken its success to a higher level. As you might expect, this has led to considerable attention from top investors. Two of these investors are Tom Skaggs and Kevin Mayers. These former Disney leaders now have their own investment company worth $300 million, and they have embraced Daikeler’s new business model with the full weight of their capital. At its most recent valuation, Daikeler’s company was estimated to be worth approximately $2.9 billion.