Peloton is one of the highly-valued startups trying to apply technology to the area of fitness, with livestreamed classes that people can pedal along with at home on the company’s customised exercise-bike and app.
In May 2017, its last funding round ($325m) valued the company at $1.25bn, making it the latest Silicon Valley ‘unicorn’. Anyway, it’s just acquired a music startup: Neurotic Media, a B2B firm that until now has focused on white-label music-licensing for brands.
Its founder, Shachar Oren, will work with Peloton’s head of music Paul DeGooyer according to TechCrunch.
“Our members have embraced music as central to the Peloton experience and consistently rank it as one of the top aspects of the brand. The addition of Shac and his amazing team to the Peloton family will help us rapidly deploy new music features we know our members want, along with some unique innovations we think they’ll love,” said DeGooyer, about the acquisition.
The bigger picture here: fitness apps are a buzzy and highly-valued market, and music is key to their experience: so there are opportunities here not just for startup acquisitions, but for licensing deals and other kinds of partnerships with rightsholders directly.