The news of the app deal helped push Roku’s stock up 10% Wednesday to a closing price of $128.39. Peloton shares, which went public in a high-profile IPO last fall, gained 4% to $60.25 after reaching an all-time high of $61 during the trading day.
With COVID-19 shuttering gyms and other athletic facilities for months, home workouts have gained in popularity. In the U.S, the Health & Fitness category experienced the largest growth in streaming on Roku devices when compared to other genres, growing by more than 130% in May compared with the same period in 2019.
The Peloton channel features thousands of instructor-led workouts that can be done with or without equipment. While Peloton initially created an Apple-like media network that could only be experienced on its own high-end equipment, it has more recently explored a blended model, distributing its subscription app more widely. Users looking beyond bikes or running can do floor-based disciplines like strength, yoga, HIIT and dance cardio, and meditation.
An app-only Peloton Digital membership is $13 a month, significantly cheaper than the $2,000 to $4,000 pricetag for its bikes and treadmills. A 30-day free trial is available for new users, and those opting into a subscription can do so via Roku Pay. Existing Peloton subscribers can log in for free via Roku.
According to the official deal announcement, a recent analysis of more than 5 million Roku households deemed likely to engage with health and fitness content found more than half were cord-cutters or cord-nevers. Along with gaining incremental reach, Peloton said it plans to use Roku’s machine learning targeting capabilities to analyze 100,000-plus unique data signals to optimize toward Peloton app installs and sign-ups.
“As people continue to stay home, the television is increasingly becoming their window to the world, providing virtual access to the gym, travel, food, learning, and more,” said Regina Breslin, Roku’s director of content acquisition. “Consumer appetite for compelling content has never been stronger and we’re focused on delivering programming Roku users want and love. We’re excited to bring Peloton’s incredible fitness programming available to millions of streamers.”
“We are excited to roll out our best-in-class streaming fitness service onto the Roku platform,” said Karina Kogan, SVP and GM of Peloton Digital. “We’ve seen growing engagement with our TV apps, especially as more and more consumers look for at-home fitness solutions to keep them physically and mentally fit.”
Founded in 2012, Peloton says it currently has 2.6 million members.