Peloton is getting involved in the music business. This popular fitness startup is known for its use of popular music in the classroom, and today announced that it will tune its own music, which can only be heard in its app. In the new year, Chromeo, Big Boi and DJ Dillon Francis released a new mix of three Elvis tracks.
Peloton will own the exclusive rights to these songs, which will be premiered in the app today as part of the “Final Mix Collection”, which includes yoga, strength, core and outdoor running classes. As part of the New Year’s promotion, the company also extended the 30-day free trial period to two months.
A spokesperson said that the idea of starting with Elvis was to find “an expression that reproduces the classics in a modern way”
Peloton has unique music. The company already has its own hardware and video content designed to attract users and defend against competitors. If people want to use Peloton bikes or take lessons from Peloton coaches, they need to stay in the company’s ecosystem-now, the same is true for these tracks. However, it is not clear how popular these songs will become without appearing in streaming services, radio or commercials.
In the long run, exclusive music can also serve as a way for Peloton to reduce licensing costs. Similar to companies like Spotify, the company pays for music streams and has entered into deals with artists such as Beyoncé to ensure their music rights. As long as the company can produce songs that people want to hear during exercise, it can build a larger proprietary internal music catalog, which is one way to control these expenses.