By Peloton Partners with Beyoncé to Offer Themed Workouts with her Music
Peloton, the at-home fitness company, known for its spin bikes and treadmills, just signed one of the biggest names in the music industry. Peloton users and Beyonce fans can now look forward to a new collection of classes from the artist.
Beyoncé teams up with Peloton
Earlier this week, the company announced a multiyear deal with Beyoncé. The artist will help curate classes for the company’s subscription service. The themed Beyoncé workouts, including homecoming-themed classes, will be offered across all categories offered on the company’s app, including cycling, running, strength, meditation, yoga, and Bootcamp.
In a statement, the singer said, “Peloton and I both believe that the power of music can help uplift, motivate and inspire those on their fitness journeys.” She revealed that she had been a Peloton member for several years. She is excited to be working with a company that helps people of all ages to be their best version in an innovative way.
Strategic Partnership
The partnership is perfect as Beyoncé is the most requested artist on the company’s platform that has more than 3.6 million members around the world. Other than offering the users Beyoncé themed workouts; they also intend to offer two-year free digital memberships to students at several historically black colleges and universities. The New York-based company also has plans to build a long-term partnership with HBCU to bring in new talent by recruiting students at both internship and undergraduate levels. “I’m proud to celebrate the students at HBCUs with this donation, to encourage them to find and embrace their own wellness regimens,” Beyoncé said of the partnership.
Surging Shares
Beyoncé is a hitmaker, and her latest deal with Peloton is not an exception. After the partnership was announced on Tuesday, the company’s shares increased by eight percent. Peloton did not previously carry the singer’s music, and this deal gives the company a competitive edge. The depth of Beyoncé’s music catalog also doesn’t hurt. Her music is known worldwide as she is a superstar.
According to a Twitter user, Peloton’s market share went up by 2.5 billion dollars in the three hours of the Beyoncé deal announcement. Another Twitter user expressed her excitement over the partnership. Generally, Beyoncé fans and Peloton users are elated over the new deal.
Peloton users were informed of the classes through push notifications and email alerts. Beyoncé themed classes have already available on the Peloton app, and there are more to come.
Past Legal Troubles
Playlists are an essential part of the classes offered by Peloton. A lawsuit filed by the National Music Publishers’ Association threatened their music playlists. The company was sued last year in March for illegally using songs in their video fitness classes available on their subscription service. The case was settled in February this year, and the company had to remove some songs from their playlist.
The trade association and the company agreed on working together to make Peloton’s music licensing systems and processes better. Following their past legal troubles, Beyonce signing directly with the company instead of through a publisher is interesting.
Since the settlement, Peloton has added numerous publishers and also offers the option for artists to partner directly.
Corona Virus
Peloton’s business model is primarily based on at-home workouts. Following coronavirus, gyms closed, and this offered a business boom for Peloton. There was a surge in sales for Peloton bikes as people sought alternative options for staying fit while at home. The demand for indoor cycles surpassed the supply, and in some areas, there was a ten-week waitlist.
In an attempt to make their products more accessible, Peloton lowered the cost of its most popular spin bike by three hundred and fifty dollars. The standard peloton bike now goes for $1895. Peloton continues to offer more products that offer advanced features. They debuted a premium bike+ that has a rotating touchscreen and a four-speaker sound system. They also intend to launch a new treadmill early next year that will go for only $2495. This will be a cheaper alternative to their $4295 premium treadmill.
Peloton has had a great year, but on Monday, their shares dropped by twenty percent. Pfizer announced that they had a vaccine in early trials that was proving very effective against coronavirus. This is a promising step towards the fight against the coronavirus pandemic.
Despite the drop-in shares, Peloton still shows great potential even after the pandemic is over. The peloton stocks have been rebounding following the announcement.
James Hardiman, the managing director at Wedbush Securities Analysts, thinks that Peloton has great promise even after a coronavirus vaccine is distributed.
He shared that he has always been a big believer in the shift from traditional gyms to at-home workouts. According to him, Peloton is the best-positioned company to capitalize on at-home workouts. “Peloton’s future remains bright,” he added.
