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.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Peloton Wants to 'Sell Happiness' With IPO, But Faces Serious Music Licensing Risks'We may be unable to license a large amount of music,' the exercise bike startup says, which could 'materially harm' its business.
Leer más »
Peloton IPO: Five things to know about the interactive exercise-machine companyPeloton Interactive Inc. sells exercise machines and fitness classes, no matter what its filing may want you to believe.
Leer más »
Peloton Races To IPO With $915 Million In RevenueThe popular fitness company has more than 511,000 subscribers whose purchases of its bikes and treadmills have made up the bulk of its 2019 revenue.
Leer más »
Fitness startup Peloton files for IPO with annual revenue of $915 millionPeloton, the indoor fitness startup, filed paperwork on Tuesday for an initial public offering.
Leer más »
Peloton reveals IPO documents showing widening losses of $245.7 million on sales of $915 millionPeloton, which previously said it had filed the paperwork confidentially, makes cycles and treadmills with screens for users to join live and recorded fitness classes from their homes, hotel rooms or offices.
Leer más »
Peloton, the startup behind the connected fitness craze, files for IPOThe startup will trade on the NASDAQ under the ticker 'PTON.'
Leer más »