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Peloton inks two partnerships for its content

Sep 28, 2023
Illustration of a Peloton bike with the logo replaced by a dollar sign.

Illustration: Sarah Grillo/Axios

Peloton has partnered with the New York Road Runners, creating fitness content tied to the nonprofit's road races, and Lululemon, providing classes for the brand's exercise app and collaborating on apparel.

Why it matters: Investors loved the Lululemon agreement, sending Peloton shares soaring 17% in after-market trading Wednesday. It popped 6% to nearly $5 per share just after Thursday's open.

Details: The back-to-back deals link the fitness company to more potential paying members as it looks to maintain and grow its subscriber base as hardware sales lag.

  • NYRR named Peloton a strategic partner through 2025, the companies said in a press release Thursday.
  • Peloton will create scenic classes for its treadmill product and audio-only classes for its app based on NYRR's races, starting with this year's New York City Marathon. The deal is the first time its scenic classes will include footage of an actual course.
  • Lululemon and Peloton announced Wednesday a five-year deal, where Peloton will be the brand's exclusive digital fitness content provider. Some instructors will become ambassadors of Lululemon, which will be Peloton's primary athletic apparel partner.

Of note: Lululemon appears to be admitting defeat on its expansion beyond clothing, namely fitness hardware. It will stop selling Mirror devices, which it acquired for $500 million in 2020, by the end of the year.

💭 Kerry's thought bubble: As a devoted Peloton user, NYRR participant and Lululemon wearer, this news is a win-win-win for me. Completing Peloton's marathon training program helped me run one of my fastest and most relaxed races, so I'm personally excited for some fresh race prep content.

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