Introduction

What is the technology?

Arm wearables are one of the biggest and newest innovations in technology since the smartphone. In short, they are "wearable tech" like smartwatches, fitness trackers, Disney Magic Bands and other connected devices.


How does it work?

Arm wearables are loaded with smart sensors and usually connect wirelessly to a smartphone using Bluetooth. They use these sensors to connect to a person with the goal of helping them stay organized or achieve goals like staying active, losing weight, or getting on a ride at Disney World without waiting in line or printing out a Fast Pass. 1 
Fitness trackers can record a person's heart rate, body fat composition, perspiration, health, temperature and muscle activity all by just touching their skin. They can also record movement, distance and speed using GPS, accelerometers and gyroscopes. 2

Smartwatches, like the Apple Watch and Android Wear models, are like mini computers that people wear on their wrists. They can do a lot of the same things fitness trackers can do (recording heart rate, vital signs, etc.), but they also display messages and notifications from smartphones, support a variety of apps (such as Uber, so people can hail a cab from their wrist, and airline apps, so they can use their watch as a digital boarding pass). Some smartwatches can also reply to text messages by voice. 3   
Disney's Magic Bands  can be used for park admission, as Fast Pass tickets, as hotel room keys, and even for making purchases at shops and restaurants on Disney properties. 4


Statistics/data that support the legitimacy of this technology

Arm wearables are definitely a legitimate technology, and are probably here to stay -- at least until the next big thing (retinal scanning? microchip implants?) comes along.
Smartwatches are now being manufactured by Apple, Sony, Samsung, and Motorola, and 15 percent of tech consumers report using wearable technologies. 5

FitBit, which was founded in 2007 and started the fitness tracker craze, has grown rapidly. From 2010 to 2015, the company's revenue increased from just over $5 million to more than $1.8 billion. In 2014, 14 million fitness trackers were sold worldwide. By 2016, that number was projected to increase to almost 40 million. 6


As for Disney, it introduced Magic Bands in 2013 and has made continuous improvements to them since then. In 2016, the company's biggest competitor, Universal Orlando, started using similar technology, called TapuTapu bracelets, at its new Volcano Bay waterpark. The bracelets allow customers to pay for merchandise, food, and drinks, and to interact with environmental features, set off water springs, and illuminate lights. 7

Carnival Corporation also emulated Disney's Magic Bands with its own arm wearable, called the Ocean Medallion, in 2017. 8



Who is using it and who owns it?

Who's using arm wearables? It depends on the type of wearable. Fitness trackers have a large mainstream following, with 10 percent of adults in the U.S. wearing one. Broken down demographically, 36 percent of fitness tracker users are between the ages of 35 and 54, 41 percent of users have an average income of more than $100,000 and 54 percent of users are female. 9



Smartwatches, on the other hand, have not caught on as quickly or as widely. Only 2 percent of Americans have a smartwatch today. About 69 percent of users are in the 18-34-year-old age category, 71 percent of them are male, and 48 percent had an income below $45,000. 10


Disney Magic Bands and similar wearables are used for a limited time period by people who visit the specific theme parks and cruises that offer the technology, so their demographics would obviously mirror that population.

Assessments/reviews of the technology

Do fitness trackers and smartwatches live up to their hype? It depends who you ask.


Researchers from the University of Pennsylvania found that smartphone apps that counted steps were actually slightly more accurate than fitness trackers. But several people interviewed in a CBS News story about the research said they preferred wearing a tracker on their wrist when they're running or working out vs. having to carry a smartphone in their pocket. 11

Tech writer Rohan Navarane, who offered his review of smartwatches in "MUO" ("Making Use Of") magazine, argued that it was time for people to buy a smartwatch if they didn't have one yet. Why? Because smartwatches are great for performing mundane activities like setting reminders, replying to instant messages, and checking notifications without having to pull your phone out of your pocket. Navarane also thinks smartwatches make people more active by making them aware of how many steps they've taken during a day. Despite his overall endorsement of smartwatches, Navarane argued that the average price for a smartwatch ($250) was still a little high for what is actually just an accessory to a smartphone. He would like to see tech companies sell them as such instead of marketing them as luxury goods. 12

While the jury might be out on the value on fitness trackers and smartwatches, there seems to be no doubt that Disney's Magic Bands have been a good investment. They have been credited with revolutionizing the park's operating model, reducing bottlenecks and shortening ride wait times and are clearly a win for both the park -- which wants to keep people moving and spending money -- and visitors -- who just want to enjoy their day without wasting time standing in line. 13



1 Dan Sung, "What is Wearable Tech? Everything You Need to Know Explained," August 3, 2015, www.wareable.com (accessed April 22, 2018).
2 Sung, www.wareable.com.
3 Sarah Silbert, "What is a Smartwatch?" April 15, 2018, www.wareable.com/wearable-tech/what-is-wearable-tech-753 (accessed April 22, 2018).
4 "Understanding Disney Magic Bands -- How it Works & Benefits," November 24, 2015, www.youtube.com/watch?v=__yY8M4TZoAwww.youtube.com/watch?v=__yY8M4TZoA (accessed April 22, 2018).
5 Todd Wasserman, "The Fourth Screen: How Smartwatches Could be Used for Ads," March 23, 2014, www.mashable.com/2014/03/23/smartwatches-ads/#Ap.hkVsLHkqD (accessed April 22, 2018).
6 "Fitbit -- Statistics & Facts," n.d., www.statista.com/topics/2595/fitbit/ (accessed April 22, 2018).
7 "TapuTapu at Universal's Volcano Bay," n.d., www.orlandoinformer.com/universal/taputapu-volcano-bay (accessed April 22, 2018)
8 Cliff Kuang, "Carnival's Ocean Medallion Opens a Sea of Possibilities," October 19, 2017,
https://www.fastcompany.com/40474549/carnival-cruise-lines-ocean-medallion-opens-a-sea-of-possibilities (accessed April 22, 2018).
9 "The Demographic Divide: Fitness Trackers and Smartwatches Attracting Very Different Segments of the Market," n.d., www.npd.com/wps/portal/npd/us/news/press-releases/2015/the-demographic-divide-fitness-trackers-and-smartwatches-attracting-very-different-segments-of-the-market-according-to-the-npd-group (accessed April 22, 2018).
10 "The Demographic Divide: Fitness Trackers and Smartwatches Attracting Very Different Segments of the Market.
11 U-Jinn Lee, "Are Fitness Trackers Worth the Money?" February 19, 2015, www.cbsnews.com/news/are-fitness-trackers-worth-the-money (accessed April 22, 2018)
12 Rohan Naravane, "Should You Buy a Wearable? 4 Reasons You Need a Smartwatch," June 28, 2017, www.makeuseof.com/tag/buy-wearable-4-reasons-need-smartwatch (accessed April 22, 2018)
13 Caroline Hanamarian, "Magic Bands: Disney Parks Go Digital," November 17, 2016, https://rctom.hbs.org/submission/magic-bands-disney-parks-go-digital (accessed April 22, 2018)

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