Peloton Interactive, the fitness company that makes workout equipment with live exercise routines, announced an exclusive content deal with TikTok today (Jan. 4), marking another step in CEO Barry McCarthy’s turnaround strategy to position the company as an inclusive one promoting “fitness for all.”
Throughout 2023, Peloton experienced massive losses though McCarthy, the former CFO of Spotify, has been making an effort to bring the company back to profitability. He has put forward initiatives such as rental options for the equipment, relaunching the Peloton app, and creating tiered subscription pricing to encourage potential users. Losses have narrowed but are still significant. In the quarter ended September 2023, Peloton lost nearly $160 million on a revenue of $596 million.
In the beginning stages of the pandemic, Peloton stock spiked thanks to consumers investing in at-home workout products when gyms became less accessible. However, when people started returning to gyms in 2021, interest for Peloton began to wane.
Other issues—such as multiple product recalls, Black employees alleging substandard pay, and two TV shows writing in Peloton-related deaths for their characters—were detrimental to the the company’s reputation. Its stock price peaked at $167 at the end of 2020 and is down more than 95 percent since then. Peloton shares jumped 15 percent to $6.18 today after the TikTok partnership was announced.
Under the deal, TikTok will display short-form videos and live streams from Peloton through a new hub on TikTok called #TikTokFitness. Classes in the hub will be provided by both Peloton instructors and TikTok creators. Those categories aren’t mutually exclusive though. Both TikTok and Peloton are taking advantage of an organic collaboration that had been taking place on the short video app.
Peloton’s partnership with TikTok will also expand beyond fitness videos and include “get ready with me” and “behind the scenes” content, TikTok’s global head of business marketing Sofia Hernandez told CNBC.
Some Peloton instructors have become successful content creators in their own right by posting motivational, educational or comical workout clips on TikTok. Ally Love, Cody Rigsby and Robin Azrón are a few who have built large followings on the platform. Even as Peloton failed to keep momentum going after its initial pandemic surge, these influencers’ careers have sustained.