Exercise company Peloton revealed its latest quarterly financial information. It gives us a peek at where the company is headed after facing massive lawsuits from labels.
Peloton will introduce several new ‘Artist Series’ classes in partnership with artists. A recent Jennifer Lopez dual-instructor ride with Robin Arzon and Jess King hit the top 10 live class list.
“In order to amplify our commitment to music, we plan to increase the number ‘Artist Series’ ferings. We recently produced a Jennifer Lopez dual-instructor ride with Robin Arzon and Jess King, as well as a Lizzo ride, and both placed in the top 10 live classes all time on our platform.”
Other classes based on artist-focused music include Paul McCartney, Red Hot Chili Peppers, The Chainsmokers, and Shakira.
Peloton’s content cost for past use — how much they pay to license music — went down this quarter. Those costs were $0.9 million in Q3 2019 compared to $2.9 million in Q3 2018. Despite that reveal, Peloton provided no updates on the from U.S. music publishers.
Analysts who were present during the call didn’t see fit to ask about the status those lawsuits. The NMPA accused Peloton using its songs without proper licensing.
Earlier this year, several music publishers sought $150 million in damages for unlicensed music. In September, the publishers upped that demand to .
NMPA lawyers say the increased amount is based on finding new infringements in the discovery process. Peloton sees the difficulty in obtaining music licenses as a ‘risk factor’ in doing business. Peloton filed a counter-suit against the NMPA — accusing the organization price-fixing.
Despite the fierce legal battle that is playing out in the courts, Peloton’s pritability remains in question. The company’s revenues more than doubled in Q3 2019, bringing in$228 million.
Peloton’s net loss narrowed from $54.5 million to $49.7 million over the same period. The exercise company now counts around 563,000 connected subscribers compared to 277,000 last year. The company expects that subscriber base to jump to 885,000 by the end 2020.