A group of music publishers and artists sued Peloton for $150 million last year because of alleged infringement.
published a story saying riders were complaining about "a significant downgrade in music quality" following the changes.
Around that time, Peloton countersued the plaintiffs, alleging that they "coordinated to collectively negotiate licenses in violation of the antitrust laws." Discovery in the case is ongoing, and Peloton promises in the prospectus to "defend the claims made against us and prosecute the counterclaims presented."
It makes sense that Peloton wouldn't roll over on a $150 million suit and that it would continue to seek a longer-term solution for dealing with royalty payments for music, an important part of the experience. But for a company trying to sell expensive workout bikes — they start at $2,200 — and to get those paying customers renewing their $39 monthly subscriptions, the digital music spat represents a potentially costly and unpredictable sideshow.
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