“Once a week, I’ve got a call with another fitness company,” says music attorney, who works on licensing for clients like the home rowing machine company Hydrow and the boxing startup Liteboxer."They need to go all out in order to compete because that's what consumers are expecting now. And that’s good news for the music industry."It took some work to get there.
The agreement drove Peloton to sign licensing agreements with both publishers and labels. That occurred just as the coronavirus pandemic spurred the $100 billion fitness business to go virtual — and the connected apps that found an audience seem to be keeping it as gyms reopen. The exercise app business was worth $4.4 billion last year — a 53% increase from 2019, according to Grand View Research, which expects it to climb to $15.5 billion by 2028.
Peloton, and many other companies, sell both hardware and a subscription service that offers video classes for which they need to license music. Many of them pay rights holders by setting aside a percentage of overall revenue for music, then dividing that up by aggregate usage the way Spotify and other streaming services do. Unlike streaming services, however, this revenue in most cases is divided evenly among recording and publishing rights holders, much like it would be for other video uses.
, WMG chief digital officer/executive vp business development. “Some of the biggest [fitness] players are becoming some of our biggest revenue drivers.” That growth involves startups like virtual reality company Supernatural, which synchronizes movements to song beats and lyrics and on Tuesday launched a new boxing feature, and established brands like Barry’s Bootcamp, which licenses music for its Barry’s X platform.
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Source: Forbes - 🏆 394. / 53 Read more »