Key Takeaways
- Peloton Interactive Inc. struck a deal with TikTok to provide workouts and other fitness-related content on the social media site.
- Peloton will have a dedicated, co-branded hub on TikTok where customers can find its offerings.
- The move is part of Peloton’s effort to reposition itself as the booming demand for its stationary bikes during the COVID-19 lockdowns has faded.
Shares of Peloton Interactive Inc. (PTON) took off Thursday as the connected fitness company said it was partnering with social media giant TikTok.
TikTok has agreed to create a fitness hub called #TikTok Fitness, on which it “will have a dedicated, co-branded hub that houses custom Peloton content.” Peloton said it will be providing select live workout classes, an original instructor series, creator partnerships, class clips, and celebrity collaborations on the site.
Oli Snoddy, vice president of consumer marketing at Peloton, said both companies recognize the way people engage in fitness is constantly changing. Teaming with TikTok helps Peloton connect with new audiences, “and in completely new ways,” he said.
Demand for Peloton soared during the pandemic as people stuck at home because of lockdowns looked for ways to exercise. However, as restrictions eased, sales fell.
Last May, the company announced a major makeover, saying it was repositioning itself “from the perception of an in-home bike company to reflect everything Peloton has to offer to everyone, at any level, wherever they are.”
The company said #TikTokFitness Powered by Peloton will be available to customers in the U.S., U.K., and Canada.
Even with Thursday’s gains of roughly 15% to $6.18 at 2:45 p.m. ET, Peloton Interactive shares have lost more than 30% of their value in the past year.