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Peloton and Echelon Go Big on Music Partnerships

  • Peleton is launching a virtual music festival, as it leans further into music partnerships to attract and retain users.
  • At-home fitness competitor Echelon announced a partnership with Pitbull.
Echelon Fit/Design: Alex Brooks

Peloton used to have a “come for the workout, stay for the music” vibe. Now it might be the other way around.

The at-home fitness giant announced a virtual music festival, albeit one without live performances, featuring music from a star-studded list of artists including Nas, Pearl Jam, Migos, and Depeche Mode.

Echelon, a Goldman Sachs-backed Peloton competitor, announced a partnership with Pitbull on Tuesday. Goldman led a $65 million financing round for the company in December.

Music has become a key component for major at-home fitness brands.

  • Peloton inked a two-year partnership with Beyoncé in November and a deal with music competition platform Verzuz in March.
  • Earlier in June, at-home boxing startup Liteboxer signed a licensing deal with Universal Music Group.

According to Pipsilay Research, 58% of Americans say that celebrity endorsements influence their purchase decisions, and 62% equate celebrity endorsements to brand quality and integrity.

Peloton could use the branding boost after a rocky year in which it was sued for patent infringement and issued a voluntary recall of its treadmills after the machines were tied to one death and multiple injuries.

Its stock price is down 14% since the start of the year, hitting an eight-month low in May.

Peloton still anticipates $4 billion in fiscal 2021 revenue. The company reported a net loss of $8.6 million in the quarter ending March 31, but sales grew by 141% year-over-year.

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