Peloton is raising the price of its All-Access membership for the first time, while applying deep discounts to the cost of its Bike and Tread fitness equipment. At this time, price changes only affect customers in North America.
Beginning June 1, membership will cost €44 (previously €39) for Peloton subscribers in the United States and CA$55 (previously CA$49) for those in Canada, Peloton announced in a blog post (a via CNBC). Prices for digital-only subscriptions remain the same.
Now for the good news: the starting cost of the Peloton Bike is down €300, from €1,745 to €1,445, the Bike+ is down €500, from €2,495 to €1,995, and the Tread is down by €150, from €2,845 to €2,695. XNUMX.
The value for money
Peloton is at pains to emphasize how much more a membership includes today than when pricing was first set in 2014: many more types of classes, many more instructors, more fitness programs, more languages supported, etc.
"Creating great content and a compelling platform comes at a cost, and this price increase will help us continue to serve our members," says Peloton. “Hardware vs. subscription pricing is one of the many levers through which we seek to lower barriers to entry.”
Peloton recently introduced a One Peloton Club program in certain areas of the United States, where the cost of the team is combined with higher subscription fees. Earlier this month we also saw the launch of the Peloton Guide, which tracks your workouts at home.
Analysis: Tough times for Peloton
It's no secret that it's been a rough year or two for Peloton, with production pauses on bikes and treadmills in response to slower demand, problems with faulty equipment, changes in leadership, and even unfavorable cameos on talk shows. TV.
With so many exercise and fitness options now available, including fitness subscription services from Apple and Fitbit, it seems like fewer and fewer people are willing to shell out thousands of dollars for home equipment.
By lowering the cost of its bikes and treadmills, Peloton makes it cheaper for new users to start the service, while the modest increase in monthly subscription fees balances the revenue stream for these users in the long run.
Will have to wait and see if it works. According to Peloton, the changes are "part of our new CEO Barry McCarthy's vision to grow our community as we continue to offer our members and shareholders the leading global connected fitness platform."