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.