Peloton is busy with the music industry. The popular fitness company, which was already known for using popular music during its lessons, announced today that it will be installing its own music that can only be heard within the app. For the new year, three new remixes of Elvis tracks come to the app from Chromeo, Big Boi and DJ Dillon Francis.
Peloton will own the exclusive rights to the songs, which premiere today in the app as part of an ‘ultimate remix collection’, which includes yoga, power, core and outdoor classes. As part of a New Year’s promotion, the company is also extending its free trial from 30 days to two months.
According to a spokesperson, the idea behind the start with Elvis was to “find a new expression of the classic catalog in a contemporary way” – which to me sounds like a way to make Elvis music that you actually want to hear as u practice.
Exclusive music makes sense for Peloton. The company already has its own hardware and video content, which is meant to keep users addicted and repel competitors. If people want to use a Peloton bike or take a class with a Peloton instructor, they have to stay in the business ecosystem – and the same goes for these tracks. Yet it is unclear how popular the songs can ever become without appearing on streaming services, on the radio or in advertisements.
In the long run, exclusive music also makes sense as a way for Peloton to lower its licensing costs. The company pays by music stream, similar to companies like Spotify, and has worked out agreements with artists like Beyoncé to secure rights to their music. Building a larger catalog of exclusive in-house music can be a way to contain the cost, as long as the company can make songs that people want to hear during their workout.