Peter Stern, CEO of Peloton Interactive.
Courtesy: Peloton Interactive
Platoon said Thursday that it has appointed Peter Stern, a Ford director and co-founder of Apple Fitness+ will be the next CEO and president.
Stern, the president of Ford Integrated Services, primarily oversees the auto company's subscription services, such as BlueCruise, Pro Intelligence, connectivity and security. He also led the company's digital product team.
Stern is scheduled to leave his role at Ford and take over the helm of Peloton on January 1. Interim co-CEO Karen Boone will remain in this role until the end of the calendar year, while her counterpart, Chris Bruzzo, will step down. from the role of co-CEO on Friday. Both Boone and Bruzzo will remain on Peloton's board.
Stern is the third CEO to lead Peloton in its history. The news came alongside Peloton's fiscal first-quarter earnings report. The company's shares rose 20% in premarket trading.
“Peter is a seasoned strategist with a track record of driving sustainable growth through innovation, and we are confident in his ability to lead Peloton at this important time. He brings meaningful expertise in scaling differentiated technology-focused platforms and a deep understanding of the health and wellness industry – making him ideally suited to serve as Peloton's next CEO,” said Jay Hoag, Chairman of the board of Peloton, in a press release.
“Additionally, Peter embodies Peloton's core values, including operating with a bias for action, empowering teams of smart creatives, and collaboration.”
The announcement comes about six months after Peloton first announced it Spotify And Netflix director Barry McCarthy would step down after about two years in office.
McCarthy had taken over from founder John Foley and worked to bring Peloton back from the brink of extinction by dramatically cutting costs and refocusing strategy.
Peter Stern, CEO of Peloton Interactive.
Courtesy: Peloton Interactive
Peloton's decision to hire Stern signals that the company is currently tripling down on the company's core value proposition to investors: high-margin recurring subscription revenue.
Stern's background running Ford's subscription business will likely help build and retain Peloton's connected fitness subscribers and app subscribers.
In a press release, Peloton said it was looking for a new CEO who values and loves Peloton's products, understands the company's challenges and opportunities, and is passionate about helping people achieve their fitness goals.
Stern was an early adopter of Peloton, a member since 2016, and “has been at the intersection of hardware, software, content and services for more than two decades at Ford, Apple and Time Warner Cable,” the company said.
As co-founder of Apple Fitness+, he helped the industry grow its subscriber base to millions and knows how to run a “complex subscription-based business,” according to Peloton.
The company said it was also looking for a product innovator and strategist and pointed to the more than 30 patents Stern has acquired over the years, including a patent on online media content.
“Working for Peloton is a dream come true for me,” Stern said in a statement. “My goal is to help millions of people live longer, healthier and happier lives. Peloton, with its unique combination of people, products and passionate members, gives me the opportunity to do just that.”
This story is developing. Check back later for updates.