Can More Wellness Content Save Peloton?

A recent investor presentation and some interesting moves have offered hints about what’s ahead for Peloton – and who may be willing to buy in

With wellness on everyone’s mind and a global wellness economy projected to reach $8.5 trillion by 2027 , Peloton may have discovered a way forward.

The struggling connected fitness company — once at the top of its game during the pandemic— is in the middle of its next chapter, one that entails a global refinancing plan that will arm the fitness brand with $1.4 billion in new credit.

Questions have lingered regarding Peloton’s overall strategy moving forward, despite two relentless years of attempts to right the ship under former CEO Barry McCarthy, who stepped down in May as Peloton issued pink slips to 15% of its staff.

However, a recent investor presentation and some interesting moves by Peloton have offered some hints about what’s ahead and, perhaps most importantly, who may be willing to buy in.

Peloton Subscribers Are Mostly Female – And Loyal to the Brand

Peloton has amassed 3.7 million connected fitness and paid app subscriptions. While Peloton has had trouble growing its subscriber base post-pandemic , it’s notable that 66% of paid connected fitness subscribers who joined in 2021 are still current members. In its note to investors, the brand pointed to its subscribers’ “exceptional engagement” level.

The connected fitness company revealed that 67% of its members are female, 33% male and most members (33%) are between the ages of 35 and 44. The 45 to 54 crowd encompasses 25% of its members, followed by 22% of those aged 25 to 34.

As for income distribution, most (24%) of Peloton members are in the $100k-150k range, followed by 22% of those in the $250K+ range. Those with an income of $50k-100k make up 20% of members, followed closely by 19% of those in the $150k – $200k range.

Members have remained highly engaged in a post-pandemic environment, with Peloton demonstrating a 63% year-to-date growth in workouts per connected fitness subscription from 2018 to Q3 2024. There has also been an undeniable diversification in fitness modalities, and Peloton members have notably embraced strength when compared to 2019, when 67% were devoted to cycling and 11% were strength training. Fast forward to 2024, and 40% of Peloton members are cycling, and 24% are strength training.

Peloton as a Wellness Brand?

On top of Peloton’s strategic priorities — which it outlines as growing and engaging new audiences with experiences, making Peloton “core to the gym,” scaling its treadmill business and revising its international approach — the connected fitness brand sees a massive total addressable market of individuals who fit into its 13+ demographic and are willing to invest time and money into fitness and mindfulness.

Peloton has been exploring the world of wellness, issuing a Spring Wellness Trends study earlier this year as an initiative to deepen its understanding of Americans’ relationship with fitness.

According to Peloton’s wellness report, Gen Z fitness consumers are more likely than Boomers to engage in habit-stacking wellness routines, while almost half (46%) of wellness seekers were planning to invest more on nutrition.

Equipped with fresh Gen Z and wellness-related data , the connected fitness company recently announced it would cut its live classes on Wednesdays at its Peloton Studios in New York and London to focus instead on creating new programming and content, particularly in the strength category, along with gym-focused content and progressive strength training programs.

As for its wellness endeavors, a recent CNBC interview with Peloton’s chief content officer Jen Cotter confirmed that the brand is also using the time away from the live studios to consider new business categories.

“We’re all going to still be creating, creating social content, dropping new classes,” Cotter told the outlet. “I think that we’ll just be using the brain space that would have been spent on live classes that day to come up with new programs, new ways to distribute wellness content, new categories of business to go in, like nutrition and rest and sleep, which we’ve not really done as deeply as we plan to do.”

While it remains to be seen exactly what Peloton has up its sleeve, the connected fitness company has forged a few collaborations in recent months, partnering with hotel chain Hyatt to deliver in-room video content and Peloton equipment for travelers.

It also deepened its relationship with Chicago-area YMCAs , providing 104 pieces of its signature fitness hardware to 14 YMCA Community Hub locations in the city and offering complimentary access to its Peloton App One for all YMCA of Metro Chicago members aged 18 and above.

Peloton is expected to release its Q4 earnings next month.

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