Shares of Roku (NASDAQ:ROKU) have jumped today, up by 7% as of 12:20 p.m. EDT, after the company introduced a Peloton (NASDAQ:PTON) app on its streaming platform. Users can stream workouts even without owning a Peloton Bike or Tread.
Peloton will leverage Roku's integrated payment system to sign up new users within the app, while existing Peloton members can use their current login credentials. Roku notes that the COVID-19 pandemic caused a 130% surge in engagement in the health and fitness category during the month of May as people exercised from home. A 30-day free trial is available to new users at launch.
"As people continue to stay home, the television is increasingly becoming their window to the world, providing virtual access to the gym, travel, food, learning, and more," Roku Director of Content Acquisition Regina Breslin said in a statement.
The move is a clear win-win for both companies, which are each growing their respective user bases. Roku had nearly 40 million active accounts at the end of the first quarter, while Peloton had over 2.6 million members, including nearly 900,000 Connected Fitness Subscribers in addition to almost 180,000 Digital Subscribers. Peloton offers different membership tiers depending on whether the subscriber owns a Bike or Tread or not.
The partnership will also contribute to Roku's advertising business, as Roku will help Peloton target prospective customers on its platform for app installs and sign-ups. The streaming TV tech company has used a similar multifaceted strategy before with other high-profile launches, helping content partners expand reach while simultaneously getting a cut of sales.