The online fitness company Peloton is increasing the monthly subscription fee that users pay to access dozens of types of fitness classes, a novelty for the company. At the same time, it is lowering the price of equipment, including bicycles and treadmills, in the hope that more consumers will buy their products.
The cost of a monthly subscription has been rising for the first time since 2014, from $ 39 to $ 44 in the United States beginning June 1, reflecting a 13% price increase. In Canada, the rate will increase to $ 55 a month, from $ 49, an increase of about 12%.
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Peloton on Thursday announced price changes in a blog post, saying its hardware will also be cheaper because the company wants “more people to be able to afford it.” While the blog post did not reveal the new prices of its exercise machines, CNBC reported that the cost of the Peloton bike will drop to $ 1,445 from $ 1,745, while its Bike + will drop to $ 1,995 from $ 2,495. The Tread machine will drop to $ 2,695 from $ 2,845, CNBC said.
Peloton justified the increase in the price of the subscription by highlighting the expanded content and features that the subscription now includes, compared to eight years ago, when the company only had one computer, one bicycle, six instructors and less than 400 classes. per month.
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Today, Peloton manufactures two types of bicycles as well as a treadmill. It offers 80 different classes and has 54 instructors who teach more than 1,000 classes a month.
“We’ve constantly added content, disciplines, music, instructors and new features, into three products: the Peloton bike, Tread and Guide,” the company said Thursday.
The drop in the price of equipment aims to bring more people closer to the Peloton community.
“This is a strategic decision to play at scale and increase market share,” the blog post said. “The price changes we are announcing today are part of our new CEO Barry McCarthy’s vision to grow our community as we continue to offer our members and shareholders as a leading global connected fitness platform.”
John Foley, co-founder and former CEO of Peloton he left office in Februarywhile the company announced it would eliminate 2,800 workers in its global operations.
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