From CNBC:

Peloton has partnered with TikTok in an effort to change its public perception and attract a broader array of customers as sales and profits fall. This partnership will create a new fitness hub on TikTok, featuring short-form fitness videos, live classes, content from Peloton’s instructors, and collaborations with TikTok creators. Shares of Peloton rose about 10% in pre-market trading after the news was announced.

Peloton rebranded itself as a fitness company “for all” and launched a tiered pricing strategy for its app six months ago. The changes were designed to position Peloton as more than just a bike company and bring in new customers who may not have been able to afford its pricey connected fitness equipment but could be interested in a monthly subscription for its content. The partnership with TikTok seeks to build on Peloton’s successful relaunch and boost metrics such as app downloads and conversions.

During the Covid-19 pandemic, Peloton initially became popular after gyms closed and consumers flocked to buy its stationary bikes and at-home treadmills. However, demand plummeted when the virus receded and consumers returned to normalcy. In the three months that ended Sept. 30, Peloton lost 30,000 members and revenue fell to $595.5 million. Peloton CEO Barry McCarthy is focusing on boosting Peloton’s subscriber count and opening up new pathways to owning Peloton equipment.

While the initiatives are showing progress, Peloton still isn’t making money off its members, making partnerships with companies such as TikTok and Lululemon critical to its long-term success. The partnership with TikTok will go beyond workout videos and include “behind the scenes” content such as “get ready with me” clips and other fitness-adjacent content that gives people on TikTok an inside look into Peloton and its instructors.

TikTok’s global head of business marketing, Sofia Hernandez, believes the partnership is a perfect way to reach a broad and diverse audience. The content will feature well-known instructors such as Cody Rigsby and Ally Love and introduce some of Peloton’s lesser-known instructors to a wider audience. The goal is to take the instructors and the content Peloton has and make it accessible to a broader audience on TikTok.



Read more: Peloton partners with TikTok on classes, content