What happened

Shares of Peloton (NASDAQ:PTON) have popped today, up by 4% as of 2:42 p.m. EDT, after the connected fitness company announced its new Roku (NASDAQ:ROKU) channel. Roku shares also jumped following the news.

So what

The new Peloton channel will feature thousands of workouts led by instructors and can be accessed with or without a Peloton Bike or Tread. Peloton will sell new subscriptions through the app (entitling Roku to a cut of sales), and existing subscribers can also log in to access the channel. The company will also leverage Roku's ad-targeting capabilities to boost app installs and sign-ups.

Peloton channel on Roku displayed on a flat-screen TV

Image source: Roku.

"We are excited to roll out our best-in-class streaming fitness service onto the Roku platform," Peloton digital chief Karina Kogan said in a statement. "We've seen growing engagement with our TV apps, especially as more and more consumers look for at-home fitness solutions to keep them physically and mentally fit."

Now what

Peloton will offer a 30-day free trial to new users at launch, and digital memberships start at $13 per month for users that do not own Peloton equipment like a Bike or Tread. The partnership will give Peloton access to Roku's massive active account base, which was nearly 40 million at the end of the first quarter.

That could reinforce Peloton's current momentum in growing subscribers. Digital subscribers jumped 64% last quarter, while Connected Fitness subscribers nearly doubled. The COVID-19 pandemic has benefited Peloton, as many brick-and-mortar gyms have closed -- prominent chain 24 Hour Fitness filed for Chapter 11 bankruptcy last month -- and the company has acknowledged supply shortages as it struggled to keep up with demand in recent months.