Peloton Class Removals: Understanding Music Licensing Disputes and Their Impact

Why Did Peloton Remove Classes?

Peloton removed a substantial portion of its older on-demand class library primarily due to unresolved music licensing disputes with major record labels and publishers, leading to litigation and the necessity of content removal.

The Core Issue: Music Licensing Disputes

The primary reason behind Peloton's removal of thousands of classes from its on-demand library stemmed from complex and often contentious music licensing issues. Unlike traditional fitness classes where a single performance license might suffice, digital platforms like Peloton require more intricate and comprehensive agreements for the music used in their content.

• Understanding Music Rights: Music licensing is multi-faceted. It involves securing rights for the composition (the song itself, owned by songwriters and publishers) and the master recording (the specific recorded version of a song, owned by record labels). For on-demand content, especially when paired with visuals, synchronization licenses are crucial. These allow the music to be "synced" with video content. Performance rights (for public broadcast) and mechanical rights (for reproductions) also play a role.
• Peloton's Initial Approach: In its early growth phase, Peloton focused heavily on acquiring licenses for the music used in its live classes. However, the legal interpretation and scope of these licenses for on-demand, continuously available digital content became a point of contention. Many music publishers and record labels argued that Peloton was using their copyrighted music in its on-demand library without obtaining the necessary synchronization and mechanical licenses.
• The Lawsuit: This disagreement escalated significantly in March 2019 when the National Music Publishers' Association (NMPA), representing numerous major music publishers (including Universal Music Publishing Group, Warner/Chappell Music, and Sony/ATV Music Publishing), filed a lawsuit against Peloton. The NMPA alleged that Peloton had used over 1,000 songs without proper licensing, seeking damages in excess of $150 million. Other individual publishers and artists also pursued legal action.
• Allegations: The core of the accusation was that Peloton had failed to secure "synchronization licenses" for the on-demand classes, which are essential for coupling music with visual content for continuous streaming. While Peloton had secured performance licenses for its live classes, the NMPA argued these did not extend to the vast on-demand library.

The Impact and Resolution Attempts

Faced with mounting legal pressure and the potential for substantial financial penalties, Peloton took decisive action.

• Class Removals: To mitigate its legal exposure, Peloton began systematically removing thousands of older on-demand classes from its platform. This process was extensive, affecting a significant portion of its historical content. Classes that featured music for which Peloton could not demonstrate proper licensing were targeted for removal.
• Financial Implications: The legal battles resulted in significant costs for Peloton. In September 2019, Peloton announced a settlement with a large group of music publishers, represented by the NMPA, for an undisclosed sum. This settlement allowed them to move forward with new, comprehensive licensing agreements.
• Interim Solutions: During and after the class removals, Peloton worked to ensure a continuous stream of new content. They focused on creating classes with music from artists and labels with whom they had established clear licensing agreements. This period saw an emphasis on genres or specific artists where licensing was more straightforward.
• Negotiation and New Agreements: Following the initial disputes, Peloton dedicated substantial resources to negotiating and securing broad, comprehensive music licensing deals with major record labels, music publishers, and independent artists. These new agreements were designed to cover both live and on-demand content across various territories, ensuring future content would be properly licensed.

What This Means for the Peloton User

The music licensing challenges and subsequent class removals had a direct and noticeable impact on Peloton's user base.

• Library Changes: Many long-time users experienced the disappointment of losing access to their favorite older classes, specific instructor rides, or entire themed series. This created a gap in the historical content library.
• New Content Strategy: Post-settlement, Peloton's content strategy shifted to prioritize music from its newly secured licensing agreements. This meant a fresh influx of music, often featuring more current hits, but also a departure from some older, classic tracks that might have been popular in earlier classes.
• Instructor Impact: Instructors adapted their playlists and class structures to align with the available licensed music. While challenging, it also encouraged creativity in curating new and engaging soundtracks.
• Maintaining Fitness Routines: For users, the key was adaptation. While some older content was gone, Peloton continued to produce a high volume of new classes daily. Users were encouraged to explore new instructors, try different class types, and embrace the evolving music selection to maintain their fitness routines.

Lessons Learned for Digital Fitness Platforms

Peloton's experience served as a significant case study for the entire digital fitness industry and other content-streaming platforms.

• Importance of Robust Licensing: The incident underscored the critical importance of proactive, comprehensive, and legally sound music licensing strategies from inception. Relying on ambiguous or incomplete licenses can lead to severe financial and reputational consequences.
• User Experience: It highlighted how backend legal and business operations can directly and dramatically affect the end-user experience, potentially disrupting established fitness habits and community engagement.
• Future-Proofing Content: For any platform relying on third-party content, especially music, the incident emphasized the need to "future-proof" content by securing licenses that anticipate growth, platform evolution, and long-term availability. This often means investing more upfront in broader licensing agreements.

Moving Forward: Peloton's Evolving Content Library

Today, Peloton's content library is robust and continuously expanding, built on a foundation of more secure and comprehensive music licensing agreements.

• Current State: The company now has established relationships with a vast array of music rights holders, allowing it to offer a diverse and frequently updated music catalog across its various class modalities. While the specific older classes removed during the dispute are not expected to return, the current library is rich with new content.
• Focus on Innovation: Peloton continues to innovate, introducing new instructors, class formats, and features, all designed to leverage its current music licensing capabilities and enhance the user experience.
• Community Resilience: The Peloton community, while initially impacted, has largely adapted to the changes, demonstrating resilience and a continued commitment to their fitness journey with the platform. The focus remains on the quality of instruction, the effectiveness of the workouts, and the interactive community experience.