{"id":23969,"date":"2022-12-16T11:56:40","date_gmt":"2022-12-16T11:56:40","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/16\/ftc-case-testimony-shows-zuckerbergs-obsession-with-fitness-vr\/"},"modified":"2022-12-16T11:56:40","modified_gmt":"2022-12-16T11:56:40","slug":"ftc-case-testimony-shows-zuckerbergs-obsession-with-fitness-vr","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/16\/ftc-case-testimony-shows-zuckerbergs-obsession-with-fitness-vr\/","title":{"rendered":"FTC case testimony shows Zuckerberg&#8217;s obsession with fitness VR"},"content":{"rendered":"<p> <a href=\"https:\/\/go.fiverr.com\/visit\/?bta=1052423&nci=17043\" Target=\"_Top\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/fiverr.ck-cdn.com\/tn\/serve\/?cid=40081059\"  width=\"601\" height=\"201\"><\/a>\n<\/p>\n<div>\n<div class=\"wpds-c-grBDNq hide-for-print mb-sm undefined\">\n<div class=\"PJLV PJLV-iAjpuP-css flex items-center\" config=\"[object Object]\" data-qa=\"article-actions\">\n<div class=\"wpds-c-fLphcs\">\n<div class=\"wpds-c-jmLDag wpds-c-jmLDag-bywHgD-variant-primary wpds-c-jmLDag-biynoz-density-compact wpds-c-jmLDag-hZSyid-isOutline-true wpds-c-jmLDag-ejCoEP-icon-left wpds-c-jmLDag-futxca-cv wpds-c-jmLDag-iknmtxO-css\"><button aria-label=\"Comment\" class=\"PJLV PJLV-iPnDcc-css\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" focusable=\"false\" role=\"img\" class=\"wpds-c-kKAfCG wpds-c-efqEZa focus-highlight flex items-center justify-center brad-lg pointer transition-400 ease-in-out transition-colors\" aria-label=\"Comment on this story\"><title>Comment on this story<\/title><path d=\"M14 14V2H2v9.47h8.18L12.43 13ZM3 10.52V3h10v9.23l-2.5-1.66Z\"\/><\/svg><\/button><\/p>\n<p>Comment<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"teaser-content grid-center\">\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">SAN JOSE, Calif.<b> \u2014<\/b> One day in February 2021,  Michael Verdu wrote to some of his colleagues that their boss, Meta CEO Mark Zuckerberg, had asked him to look into acquiring a virtual reality-powered fitness app. It\u2019s a \u201cpretty strong signal that he cares about the category,\u201d Verdu wrote.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Verdu, Meta\u2019s former vice president of augmented reality and virtual reality<b> <\/b>who left the company in 2021,<b> <\/b>recently testified in federal court that the conversation was one of several he had with other Meta executives over the last couple of years to figure out how to expand into the virtual reality-powered fitness market.<\/p>\n<\/div>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">\u201cMy recollection is we were pretty aligned in looking at it as a way to broaden the audience for VR,\u201d Verdu said.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Lawyers for the FTC have been using Verdu\u2019s and other Meta employees\u2019 testimony to make the argument that Facebook\u2019s parent company is squashing competition in the niche market of virtual reality-powered fitness apps by buying the maker of the popular workout game \u201cSupernatural.\u201d<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">The FTC\u2019s case hinges on the idea that Meta\u2019s decision to acquire Within rather than create its own VR fitness app deprives consumers of vibrant choices in the market sometime in the future. Meta\u2019s lawyers have countered that the company was never serious about building its own fitness app because it would have been too complicated a process. Zuckerberg is expected to testify soon about Meta\u2019s acquisition in the United States District Court for the Northern District of California.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Testimony this past week and a half<b> <\/b>about Meta\u2019s years-long effort to expand into the virtual reality-powered fitness market has revealed just how difficult the company\u2019s larger goal of building the metaverse has become. Meta has staked its future on the idea that people one day will want to work with their colleagues, shop with their friends and spend time with their loved ones in immersive digital realms that are accessed through augmented and virtual reality services.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Meta has funneled billions of dollars into trying to make its metaverse vision a reality. Even as the company suffered declining revenue and<a href=\"https:\/\/www.washingtonpost.com\/technology\/2022\/11\/09\/facebook-layoffs\/?itid=lk_inline_manual_12\" target=\"_blank\" rel=\"noopener\"> slashed<\/a> 13 percent of its workforce this year in the face of an uncertain economic environment, Meta has remained steadfast in its investment in VR. The company<a href=\"https:\/\/www.washingtonpost.com\/technology\/2022\/10\/26\/facebook-meta-earnings-report\/?itid=lk_inline_manual_12\" target=\"_blank\" rel=\"noopener\"> said<\/a> earlier this year that it expects its virtual and augmented reality division to lose even more money next year. In October, Meta<a href=\"https:\/\/www.washingtonpost.com\/technology\/2022\/10\/11\/meta-connect-headset-vr\/?itid=lk_inline_manual_12\" target=\"_blank\" rel=\"noopener\"> unveiled<\/a> Quest Pro, a new $1,500 VR headset aimed at helping businesses and workers improve their productivity.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">So far, since buying the small virtual reality start-up Oculus eight years ago, Meta has become the dominant headset maker player in the space, claiming 78 percent of all virtual reality headset sales in 2021, according to the lawsuit.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">But Meta is facing intensifying competition in a market that is still nascent. PlayStation is planning to<a href=\"https:\/\/www.instagram.com\/p\/Chk-esavBOG\/\" target=\"_blank\" rel=\"noopener\"> release<\/a> a new virtual reality headset early next year. Apple is also expected to release a competing headset next year, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-05-19\/apple-shows-headset-to-board-in-sign-it-s-reached-advanced-stage\" target=\"_blank\" rel=\"noopener\">Bloomberg News<\/a>. Taiwan-based High Tech Computer Corp., and Pico \u2014 owned by China\u2019s ByteDance, which also owns TikTok, are also rivals in the space.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">At the heart of the FTC\u2019s case is a buzzy virtual reality app made by the Los Angeles-based Within studio called <a href=\"https:\/\/www.getsupernatural.com\/\" target=\"_blank\" rel=\"noopener\">Supernatural<\/a>, which offers its users daily exercise routines in seemingly extravagant settings. Instead of cycling on a stationary bike while looking at your living room wall, Supernatural promises its subscribers that they can put on a virtual reality headset and take an aerobics class on a snowy mountain or play a new sport in futuristic setting for less than $20 a month.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Executives over the last week and a half have highlighted some of Meta\u2019s obstacles in spurring adoption of  VR that they thought VR fitness apps could help solve. For starters, Meta\u2019s existing headsets users are overwhelmingly young males attracted to immersive video games on Quest headsets. In December 2019, Verdu had told staffers that women were only 7 percent of Quest headset users, according to an exhibit and his testimony. Meta executives thought a fitness app would bring in more women and slightly older users to their services.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">\u201cIf you look at the age profile of users in a lot of these [fitness] apps \u2014 a lot of these people actually are much broader in their age range then you would normally find in VR,\u201d said Anshel Sag, an analyst at Moor Insights &amp; Strategy who covers virtual reality businesses. \u201cIt [VR fitness] reaches a bigger audience of both men and women.\u201d<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Meta also saw VR fitness as a strategy to expand its revenue model. Currently, many VR game-makers make money when users first purchase the game and sometimes through ad hoc in-app purchases. Meta executives thought that fitness apps could adopt a subscription model, which could deter game makers from overcharging their customers while also offering the social media giant a steady income stream, according to testimony.<b> <\/b>Meta usually takes a 30 percent cut from app purchases made on its Quest headsets.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Fitness apps also have the potential to turn Quest VR headsets into a routine for their users. Historically, people often would use a Meta VR headset only for a few weeks after its purchase. But if Quest headsets are part of users\u2019 exercise routines that might increase the regularity with which people use the devices.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Testimony and exhibits reveal that Meta\u2019s interest in fitness-related VR products began as early as 2019. On Sept. 30, 2019,  Verdu sent an email to Nir Blumberger, now Meta\u2019s vice president of corporate development, and Rade Stojsavljevic, now the director of the company\u2019s in-house studios, and other employees entitled \u201cProject Saturday,\u201d according to Verdu\u2019s testimony. That was the internal code name the company was calling their effort to acquire the studio behind Beat Saber, a popular rhythm game, in which users slash objects hurtling toward them along the beat of energetic music in a futuristic world.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">In that email, Verdu proclaims that Beat Saber is a Quest \u201csystem seller\u201d \u2014 a term used in Silicon Valley to describe content and software that drive sales of hardware platforms. In fact, in September 2019 at least 50 percent of people who bought a Quest headset later downloaded Beat Saber. Verdu also wrote that Beat Saber also has a \u201cstrategic value\u201d as a potential subscription service and as a vector into fitness.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">\u201cIt\u2019s sort of like if you go to the nightclub and dance and sweat,\u201d Verdu testified. \u201cIt\u2019s like you actually are getting some fitness benefit out of that\u201d but the app is not specifically formatted for fitness.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">In November 2019, Meta <a href=\"https:\/\/about.fb.com\/news\/2019\/11\/welcoming-beat-games-to-facebook\/\" target=\"_blank\" rel=\"noopener\">announced<\/a> it acquired Beat Games, the maker of Beat Saber. Over the years, Meta executives mulled whether to refashion Beat Saber as a fitness app. While some inside Meta thought that would be a great way to take advantage of an emerging market, others thought it would dilute the brand of a widely successful product. There was also some discussion about forming a relationship with Peloton \u2014 an idea that Zuckerberg supported at one point, according to Verdu.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">\u201cI am bullish on fitness. A partnership with Peloton for Beat Saber sounds awesome,\u201d Zuckerberg wrote. \u201cI\u2019d love to see that happen. Let me know how I can help.\u201d<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">But there were always challenges to turning Beat Saber into a fitness app, according to witnesses. For starters, Meta would have to use experts to validate that the app does in fact improve fitness if the company was going to market it that way. And then the company might have to create a daily cadence of workout routines to offer enough content to make it a viable product. And Meta had promised Beat Games\u2019 leaders they would retain creative control over the product after the acquisition but they were focused on other priorities, according to Verdu.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">It\u2019s \u201ca lot of work even when you have the founder lined up,\u201d Verdu testified.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">FTC lawyers have countered that Meta employs thousands of developers who could have helped reconfigure the existing Beat Saber app or even create its own VR fitness program. The company<b>, <\/b>which earned $27.71 billion last quarter, had the resources to hire more experts, they argue.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">But by 2021, Zuckerberg appeared to be favoring an acquisition of a fitness app. On Feb. 22 that year Zuckerberg emailed Verdu and asked him, \u201cbeyond gaming have you thought about acquiring FitXR or Supernatural,\u201d referencing two leading VR fitness apps. Verdu responded by saying, \u201cI\u2019m poking at FitXR.\u201d<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Two days later, Verdu sent a colleague a message saying, \u201cZuck is still hounding me about fitness too!\u201d In March 2021, Verdu sent an email to a colleague saying \u201cZuck has pressed me 5 different times about acquiring a fitness company.\u201d<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Meta executives debated whether to purchase Within or rival VR fitness app, FitXR, according to Verdu. FitXR, which also offers exercise classes in virtual reality, would have been cheaper because they hadn\u2019t yet matched Supernatural\u2019s ability to deliver new content daily, according to Verdu. Meta was leaning toward purchasing the more established Within, but what sped up that decision, Verdu testified, was a rumor that Apple was also thinking of acquiring Supernatural. Verdu testified that he thought the Within app was worth a purchase price of up to $500 million.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">While Meta hadn\u2019t been quite ready to \u201cpull the trigger\u201d on the deal to acquire Within, it\u2019s \u201cpretty far along and Zuck really wanted to do it,\u201d Verdu wrote to a colleague in July 2021,<b> <\/b>according to his testimony.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Months later, Zuckerberg would reveal just how much he wanted it. On Oct. 28, 2021, the company renamed itself Meta, signaling that transforming human communication through augmented and virtual reality was the next stage. A day later, Meta announced it had acquired Within.<\/p>\n<\/div>\n<section class=\"dn-ns hide-for-print\" data-testid=\"mostRead\" subscriptions-section=\"content\"\/><\/div>\n<p><script async defer src=\"https:\/\/platform.instagram.com\/en_US\/embeds.js\"><\/script><br \/>\n<br \/><iframe data-lazy=\"true\" data-src=\"https:\/\/www.fiverr.com\/gig_widgets?id=U2FsdGVkX18x7XQvttUTrv1oEqmGNGTgvvCUiUoJ\/AP4z\/UyMz8lXGOLpu15jIMxBbTR0gmD5uBoFvhC4KWeALQRp3h\/X\/AwcVD0K8Wj9H\/ZzYKzcCNHosB9oS4SCJJFWiN85P9ICAc4OgCoE\/wHKIY7CDkf2\/DQ1vqGvk4smVe5cRDEmrLPCWi4FC8p40VUhSmWQ5udCm0zoJtorgWv3vbDQw0kKYkwn39ozAnQXDe+YvWMxkLFWA+O3TFwkJvdkIK+\/AUSnRssPKt5WHY0FhNOxnSPcLslEL4G4\/RfP95ve99U+kRnDy3X+KtzdQLY+u935ghON\/o3UE4IMv9oN6JX9RnxzL\/LRcOgnHigxStSGPKsZYtnz8RWNVT\/rOLAibqiWJadC5MYHRbekF3eg6FOGrQGkXYbsn0+a5aovnlLCbLwIqY9fcS17UX8J235iQ6cdmHNbrPeS84CMm34RA==&affiliate_id=1052423&strip_google_tagmanager=true\" loading=\"lazy\" data-with-title=\"true\" class=\"fiverr_nga_frame\" frameborder=\"0\" height=\"350\" width=\"100%\" referrerpolicy=\"no-referrer-when-downgrade\" data-mode=\"random_gigs\" onload=\" var frame = this; var script = document.createElement('script'); script.addEventListener('load', function() { window.FW_SDK.register(frame); }); script.setAttribute('src', 'https:\/\/www.fiverr.com\/gig_widgets\/sdk'); document.body.appendChild(script); \" ><\/iframe>\n<br \/><a href=\"https:\/\/www.washingtonpost.com\/technology\/2022\/12\/16\/meta-ftc-trial-within-acqusition\/?utm_source=rss&#038;utm_medium=referral&#038;utm_campaign=wp_business-technology\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Comment on this story Comment SAN JOSE, Calif. \u2014 One day in February 2021, Michael Verdu wrote to some of his colleagues that their boss,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":23970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-23969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-universe"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FTC case testimony shows Zuckerberg&#039;s obsession with fitness VR - mailinvest.blog<\/title>\n<meta name=\"description\" content=\"Technology is forever changing, and there are always new pieces of technology to replace obsolete ones. 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