[ftrider]

Did anyone read about the lawsuit announced today for $150 million in damages for using music of both audio and video format? I'm sort of surprised that Peloton didn't protect themselves against potential lawsuits but at the same time being currently valued at $4 billion might allow for losses like this. For all we know it was probably more profitable to take on this lawsuit than it was to sign a deal with publishers.
Its a common practice in many industries, some things like this are just the cost of doing business. Music can get people into their most motivated state, so its easy to see how that's the case here.

 

[Roadrunner]

Even if the financial end isn't much of a concern for them, losing the rights to use all that music is going to have an impact on the variety of their classes. Many of them are built specifically around certain genres.

 

[ftrider]

I just see it as a matter of negotiation right now, its easier to cut them a deal and tap into a growing market than to get a big payment once and call it a day.

 

[Selene91]

Sounds like there were knowingly negligent because every company is aware of how strict copyright laws are. The issue seems to stem around the songs being used exclusively in streamed videos.

 

[ftrider]

Sounds like there were knowingly negligent because every company is aware of how strict copyright laws are. The issue seems to stem around the songs being used exclusively in streamed videos.

Yeah and likely brought up at some board meeting, there's just no way it doesn't come across the minds of folks investing so much already into a business. Even for a regular joe its common knowledge.

 

[Jmac11]

Seems foolish to make this kind of mistake, especially when music is such a crucial part of your business strategy. Its better for them to just pay out and get official licensing/permission to use these tracks.

 

[ftrider]

Seems foolish to make this kind of mistake, especially when music is such a crucial part of your business strategy. Its better for them to just pay out and get official licensing/permission to use these tracks.

that depends who you ask because for all we know, Peloton pulling this off probably made them a lot of money via consumers that get to enjoy a vital aspect of working out. sometimes its just the cost of doing business where signing deals with publishing companies would have taken too long, place too many restrictions, and so on.

 

[Roadrunner]

Peloton is removing all classes featuring music that's been used without permission. They apparently have deals in place with other labels and publishers that will give them access to more songs which can replace what they've lost. https://www.crainsnewyork.com/technology/peloton-pulling-hundreds-songs-named-music-licensing-suit

 

[Spinmaster75]

This sounds like a situation of "move fast and break things" on their way to the IPO.

 

[Selene91]

While this wont hurt their operations as a whole, its not exactly a good representation of their due diligence. If they cant maintain oversight over such a vital component to their business, what else are they overlooking?

 

[DanielOverton]

Even if the financial end isn't much of a concern for them, losing the rights to use all that music is going to have an impact on the variety of their classes. Many of them are built specifically around certain genres.

 

[Stefon]

They've had to pull down some classes if they had any songs in them which they don't have rights to and the instructors have been a bit more limited in music they can select. They still have thousands of classes on demand and the music is generally still great so I don't think it will have much of an impact on riders.

 

[Stefon]

Interesting interview with Peloton's head of music. Peloton's Head of Music Talks on Fitness Phenom's Stellar Growth, Despite Copyright Lawsuit

 

[Stefon]

Looks like the music lawsuit has been settled. Hopefully this will mean they'll put back up some of the on demand rides they had taken down.

NMPA and Peloton Announce Settlement of Litigation, Joint Collaboration Agreement | Peloton Interactive, Inc.

Agreement Ends Lawsuit Alleging Copyright Infringement NEW YORK , Feb. 27, 2020 /PRNewswire/ -- The National Music Publishers' Association (NMPA), the trade association representing all American music publishers and their songwriting partners, and Peloton (NASDAQ: PTON), the world's largest

investor.onepeloton.com