Axios

The Peloton slowdown is here, new financials show.

Why it matters: Few benefited from the at-home fitness phenomenon ushered in by the pandemic like Peloton.

• If (or when) the boom times taper off might be a key indicator of whether the colossal workout economy underwent a permanent shift.

What’s new: Peloton’s connected fitness subscribers — people who own a bike and pay a monthly fee for classes — jumped to 2.3 million.

• But check out the chart above. For the first time since the pandemic, the number of users added during the quarter slowed.
• And those subscribers worked out less: an average of 20 times per month last quarter — a drop-off from the same time a year ago (roughly 25 rides), when people were more likely to be stuck at home.

But, but, but: Results got hit by a recall of its treadmill product that put sales on hold — a key reason the company lost money last quarter. Sales resume next week.

• Of note: It's slashing the price of its cheapest spin bike again by $400 to $1,495.

Flashback: Peloton saw unprecedented (and likely unrepeatable) demand for its equipment and classes as the economy locked down, shuttering gyms.

• “The past year represented an inflection point for the connected fitness industry, with significant increases in awareness and demand,” CEO John Foley said in a release.

What to watch: Popular gym chain Planet Fitness said this month it's recouped 75% of members lost during the height of the pandemic, a sign that gyms aren’t dead.

A new interactive experience in "Fortnite" is sparking discussion about whether featuring Martin Luther King Jr. in the game is simply too ridiculous.

Why it matters: "Fortnite" has proved that it can serve as a venue for entertainment beyond what it offers as a video game.

John Binns, a 21-year-old American who now lives in Turkey, told the Wall Street Journal that he was behind the T-Mobile security breach that affected more than 50 million people earlier this month.

The intrigue: Binns said he broke through the T-Mobile defenses after discovering an unprotected router exposed on the internet, after scanning the carrier's internet addresses for weak spots using a publicly available tool.

Western Digital (Nasdaq: WDC) reportedly is in advanced talks for a $20 billion all-stock merger with Kioxia, the Japanese flash memory chipmaker owned by Bain Capital.

Why it matters: This reflects surging demand for memory chips, driven primarily by 5G expansion and the home office boom. It also could set up a series of global regulatory showdowns, if past semiconductor company merger efforts are any guide.

Box CEO Aaron Levie tells Axios that yesterday's earnings report shows that the company can deliver long-term growth, and that last year's slowdown was a hiccup.

Why it matters: The online storage firm is in the midst of a proxy fight with activist investors who want a greater role on the company's board.

After assembling a team of tough-minded regulators to take on big technology companies, the Biden administration on Wednesday called on many of those same companies to work with the federal government to address a growing wave of cyberattacks.

Driving the news: A White House summit between President Biden and tech leaders Wednesday, including the CEOs of Apple, Google, Amazon, Microsoft and IBM, concluded with a raft of announcements of new cybersecurity projects and spending plans.

Ten federal agencies plan on expanding the use of Facial Recognition Technology (FRT) by 2023, according to a Government Accountability Office (GAO) report released Tuesday.

Why it matters: How to use these technologies ethically and how to regulate related products will become major questions as more government agencies begin using them.

It’s unclear if the upcoming Nintendo Switch release “No More Heroes 3” is good or bad, but an outcry over its review embargo raised a red flag.

Driving the news: A restriction that would have blocked critics from reviewing the game until nine hours after it went on sale was altered last night in a reminder of how fraught the game-reviewing process tends to be.

The rumored Marvel superhero game "Midnight Suns," from the acclaimed makers of “XCOM,” was officially revealed on Wednesday.

Why it matters: New games from Firaxis are always a big deal, but “Midnight Suns” also may serve as confirmation that video games, like movies before them, are now (and forever?) going to be a conveyor belt of major Marvel releases.

The Federal Communications Commission on Tuesday proposed a $5 million fine against right-wing activists Jacob Wohl and Jack Burkman for allegedly making illegal robocalls discouraging mail voting ahead of the 2020 election.

The big picture: The record-setting penalty from the FCC comes as the pair faces criminal charges of voter suppression in Michigan and a federal lawsuit in New York accusing them of making 85,000 robocalls to Black Americans in an attempt to keep them from voting.

OnlyFans, an online creator platform known for its adult content, announced via Twitter Wednesday that it has dropped plans to ban sexually explicit content on its platform in October.

Why it matters: The move comes after the proposed ban sparked an outcry from sex workers who relied on the platform to safely make a living.

As the federal government readies to spend tens of billions of dollars on broadband upgrades, the Federal Communications Commission — the agency that has traditionally doled out subsidies for internet connections — is on the sidelines.

Driving the news: The bipartisan infrastructure bill recently approved by the Senate commits $42.5 billion to broadband deployment and related projects, but the money would flow to the states, with oversight from the Commerce Department.