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With gyms closed, this might be Apple’s most successful service launch.
Why restrict to certain countries? Music copyrights?
read somewhere (9to5mac or Daring Fireball, I think) that it's not related to music copyrights since the music is straight from Apple Music service; more likely from language reasons. Basically if you are not English native speakers, you likely not enjoy the service as well as them. They might slowly roll out the service in the future, though.
But Apple TV+ doesn't have any localized content (except for subtitles and translated metadata), and its been available from the start. I understand if they want to do a slow roll out but then communicate it, at the very least.

I still haven't found any likely explanation anywhere. What am I missing?

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I wonder if there could be any perverse incentives at play for the corporation.
For some reason it seems that the fitness+ app is not compatible with airplay 2 TVs. Neither regular airplay casting nor iPhone mirroring
I hope this isn't true - I got a projector in large part so my wife and I could do yoga together for apple fitness!
You could get a Lightning to HDMI adapter, or an Apple TV.

Only one person’s stats will appear on screen but I don’t think there’s anything to stop a second person from logging the same workout on their iPhone.

I am not sold that anyone need Apple's help in order to exercise. I have been finding creative ways to work out at home throughout the pandemic. Give me some music and I can do the rest.
That's nice for you! Lots of people don't know where to start, what correct form is, what a balanced routine looks like...
This is clearly aimed at Peleton’s market.

It’s interesting to see Apple use the classic “innovator’s Dilemma” disruption pattern as that is typically seen as a david vs goliath pattern. But even as a massive company Apple is able to use this approach.