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Peloton, the interactive fitness company that makes treadmills and spin bikes, now has one of the world’s biggest stars on its payroll – Beyoncé.
The company announced a multi-year deal with the singer on Tuesday that will include a series of themed workouts across all categories offered on the Peloton app, including cycling, running, strength, bootcamp, yoga and fitness. meditation. Financial terms of the deal were not disclosed.
“Peloton and I both believe that the power of music can help uplift, motivate and inspire those on their fitness journey,” Beyoncé said in a statement. “I have been a member of the Peloton for several years and am delighted to partner with a company that helps people, young and old, be the best versions of themselves, in innovative and adaptable ways.
Beyoncé is the most requested artist by her community of more than 3.6 million members, according to Peloton, making partnership a natural fit. Peloton and Beyoncé also announced their intention to grant free two-year digital memberships to students at 10 historically black colleges and universities and said they will commit to establishing long-term recruiting partnerships with these schools to attract new talents.
“Previously they weren’t playing his music so this will expand what is already a competitive advantage for Peloton. The depth of their music catalog further extends this advantage, ”said James Hardiman, managing director of analysts at Wedbush Securities.
Of course, everything Beyoncé does is a success and the last chord is no exception. Peloton shares jumped 8% on Tuesday after the partnership was announced.
Or as one Twitter user put it, “The Peloton’s market cap has increased by $ 2.5 billion in the past 3 hours after the Beyoncé deal was announced.”
Peloton promoted the classes in an email and push alert to its app subscribers.
“When it comes to work, this week has been and will continue to be crazy. Personally, I’m always thrilled with the partnership with Beyoncé Peloton, ”one person wrote on Twitter.
“I have to take these nuggets of joy when you find them in these times,” added another user.
In February, Peloton settled a lawsuit filed by the National Music Publishers’ Association that could have compromised the fitness company’s music playlists, a vital part of the class. As part of the agreement, Peloton and the professional association have entered into a “joint collaboration agreement and will work together to further optimize Peloton’s music licensing systems and processes.”
The following month, Peloton’s business exploded due to the coronavirus pandemic. After the gyms closed during the quarantine, Peloton saw an increase in sales from people looking for an alternative way to workout at home. In some places, the company struggled to meet demand and had a wait list of more than 10 weeks for its indoor bikes.
Peloton reduced the price of its most popular spin bike by $ 350 in September to make it more accessible. The standard bike now costs $ 1,895. Peloton also launched a premium Bike + with additional features, such as a rotating touchscreen and a four-speaker audio system. A new low-cost treadmill will also be available for $ 2,495 early next year, offering an alternative to Peloton’s $ 4,295 premium product.
After getting better and better this year, the company faced its first major test on Monday when shares fell 20% upon learning that Pfizer had a vaccine that, in early trials, shows an efficacy rate of 90% in protecting people from the coronavirus.
As the stock rebounds, Hardiman said he believes Peloton has long-term potential, even after a vaccine is distributed.
“The future of Peloton remains bright,” he said. “I have long believed that there is going to be a long and significant shift from traditional gyms to home fitness, and Peloton remains the company best positioned to capitalize on it.
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