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. For now, price changes only affect customers in North America.
Starting June 1, membership will cost $44 (was $39) for Peloton subscribers in the United States and CA$55 (was CA$49) for those in Canada, Peloton announced in a post. blog post (via CNBC). Prices for digital-only subscriptions remain the same.
Now for the good news: the initial 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 reduced by $150, going from $2,845 to $2,695.
Value for money
Peloton strives to emphasize how much more a membership includes today than when prices were first set in 2014: many more class types, many more instructors, more fitness programs, more supported languages, etc.
“Creating great content and an engaging platform comes at a cost, and this price increase will help us continue to deliver to our members,” Peloton says. “The price of hardware versus subscription 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 equipment is bundled with higher subscription fees. Earlier this month we also saw the launch of the Peloton Guide, which tracks your home workouts.
Analysis: tough times for Peloton
It’s no secret that it’s been a tough year or two for Peloton, with pauses in bike and treadmill production in response to slower demand, faulty equipment issues, changes in leadership and even unfavorable cameos on TV shows.
With so many exercise and fitness options now available, including fitness subscription services from Apple and Fitbit, it seems there are fewer and fewer people willing to pay thousands of dollars. for their home equipment.
By lowering the cost of its bikes and treadmills, Peloton is making it cheaper for new users to start the service – while the modest increase in monthly subscription fees balances the revenue stream for these longer-term users.
We’ll 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.”