Headspace Is Shifting to a Multi-Platform Strategy
Tags: Case Study, Headspace, Marketing, Netflix, Content Strategy

For a company like Headspace, there are bound to be a few strategic plans that tie together. As they have a content platform, they will have a content strategy. (What new guided meditations should we focus on this year?) They’re an app company, so they will also have digital product strategies for each platform they’re on. (What bugs can we squash? What improvements can we ship?) They’ll also have marketing strategies for different channels, about how to reach potential new subscribers, and an overarching brand strategy, to shape how they define themselves.

These strategies all work in tandem. Brand strategy and overarching vision will determine content strategy, app and product strategy has to support new content types, and marketing strategies will use all that as a launchpad.

Looking specifically at 2020, Headspace’s content has expanded greatly over the last year. Their app has therefore adapted to support those new content sections. Previously, the app had three distinct sections: a homepage, a library of guided meditations, and ‘You’ to track your stats and manage your settings.

Headspace in 2018. Note the old bottom navigation bar. Credit: Headspace.com

In 2020, the app’s core navigation has been totally redesigned. As well as Meditate, the sections now include Today, Sleep, Move, and Focus.

Headspace in 2020. Note the new bottom navigation bar. Credit: Headspace.com

This shows us that Headspace is changing direction.

And, to be clear, this isn’t just conjecture that I’m extrapolating from app changes. A recent job listing for Headspace states that they’re expanding their reach beyond meditation:

This is an exciting career opportunity at a dynamic growth stage company with a talented and diverse team on one of the world’s most loved apps. We’re at an exhilarating time in our history — essentially expanding our programs to address important human problems (mindfulness, sleep, and beyond) and into new territories (Europe, Asia, South America, etc.) and industries (Workplace, Health).

These new content formats (daily podcasts, sleep sounds, focus music, and so on) help them challenge new problems, in new territories and industries. Why are they doing that now?

My hunch is this: Headspace has likely conquered 95+% of the addressable meditation market.

NB: I’m being loose when using the term ‘addressable market’ but am focussing on serviceable market (SAM) rather than the total addressable one (TAM).

Everyone who was ever going to use a meditation app in the Western world has likely already tried one out. And, if you’re trying out a meditation app, one of the ones you’ll have tried will have been Headspace.

So meditation isn’t enough to get new customers anymore. They’ve peaked. Everyone who would use an app to meditate already does. So, by introducing new content, Headspace can attract new paying subscribers. (It also helps them reduce churn, as existing subscribers see more value in their subscription.) In turn, this fulfils their primary goal of keeping their revenue growing.

It’s worth pointing out, though, that the new content isn’t a bad thing. While their new content isn’t straight-up meditation, it's still all about living life in a mindful way. I’d bet money that somewhere in Headspace Inc. there’s a board with a vision statement on it around making people live happier, calmer lives. Their new content does still aims toward that vision.