Peloton has teamed up with TikTok to develop quick workout classes and other content in an effort to rebrand the struggling digital fitness and equipment company.
As part of the collaboration, TikTok announced that they will introduce a #TikTokFitness hub that will include a dedicated Peloton section featuring specially created content for the platform. This will allow users to access a variety of Peloton-powered content, including live classes, shorter fitness videos, celebrity collaborations, and instructor videos.
Oli Snoddy, Peloton's Vice President of Consumer Marketing, stated, "We acknowledge that the way people interact with fitness is continually evolving." He expressed TikTok's desire to broaden their content "to reach new audiences in entirely new ways."
This collaboration between Peloton and TikTok signifies the first instance of the fitness company creating social content for a partner outside of its own platforms. It brings together two popular entities that experienced significant growth during the pandemic. Peloton's stock peaked at over $160 a share in 2020 but has since dropped to less than $5 at times. Following the announcement of the partnership with the social media app, which boasts 1 billion active users worldwide, Peloton's shares rose approximately 9% on Thursday.
Jennifer Grygiel, an associate professor and social media expert at Syracuse University, emphasized the strong connection between Peloton and TikTok. "Being stuck at home, a stationary bike or a new social media platform are the perfect tools to engage in participatory dance moves," she said. This collaboration follows a recent rebranding effort, aimed at expanding Peloton's image beyond just a provider of high-end fitness equipment and virtual classes.
The company faced financial difficulties and a series of public relations mishaps. In 2019, an ad sparked controversy by promoting negative body image and privilege. Additionally, episodes of popular TV shows portrayed wealthy individuals using Peloton bikes experiencing health issues, including a character's death from a Peloton-induced heart attack in the "Sex and the City" reboot. In "Billions," another character suffered a near-fatal heart attack. In January 2023, the company agreed to a $19 million settlement after the Consumer Product Safety Commission imposed one of its largest civil penalties in response to a recall of 125,000 unsafe Peloton treadmills.
In May, the company announced a more inclusive brand identity, with a wider range of fitness options, more free classes, tiered memberships, and a shift away from biking. Peloton, a pandemic standout in 2020, faced challenges in a post-covid world, with reopened gyms and in-person classes leading to a decline in customer satisfaction due to high costs. As a result, the company experienced a 76% decrease in stock value in 2021, prompting layoffs, store closures, and increased prices for equipment.
Last quarter, the fitness company saw a decline of 65,000 app subscribers and reported a net loss of almost $160 million for the previous three months. In a memo to staff last summer, Peloton CEO Barry McCarthy emphasized the need to reverse the trend and focus on increasing revenues, stating, "Cash is oxygen. Oxygen is life."
Formerly the CFO at Netflix, McCarthy was brought on board at Peloton in February 2022 to revitalize the struggling company. His efforts have involved rebranding, introducing a rental-bike service, and establishing partnerships with organizations such as the NBA, WNBA, Lululemon, the University of Michigan, and Liverpool Football Club.
