Peloton is reinventing its fitness app by providing users with three different subscription tiers, including a new complimentary tier and an upscale one priced at $24 per month. The revamp intends to reposition Peloton as a comprehensive fitness company instead of being merely recognized as an in-home bike firm.
The entry-level tier, dubbed Peloton App Free, offers access to over 50 courses spanning 12 fitness categories. This tier features a rotating assortment of showcased classes, which will be updated regularly, but does not include live sessions.
Peloton App One is the middle tier, previously existent before the overhaul, and costs $12.99 per month. It grants users unlimited access to thousands of classes from 9 out of Peloton's 16 modalities, including Strength, Meditation, Outdoor Walking, Yoga, and others, along with all the classes available in the free tier. App One members can participate in up to three equipment-based cardio sessions per month, such as Cycling, Tread, and Row classes. Moreover, members can access new on-demand and live courses, Peloton’s Challenges, Programs, and Collections.
The third tier, named Peloton App+, comes with a $24 monthly price tag and provides unlimited access to Peloton's vast library, excluding Lanebreak or Scenic classes. This tier includes all the offerings of the App One tier and-unlocks access to thousands of equipment-based cardio sessions on any indoor bike, treadmill, or rower. Furthermore, this tier grants exclusive entry to classes.
Additionally, Peloton's overhauled app introduces a new 'Gym' function, allowing users to bring the app into the gym with them. This feature is available across all subscription plans. Peloton highlights that this launch represents its first-ever offering with workouts written out, demonstrated in supporting videos, and designed to be carried out at the user's preferred pace. Subscribers will have access to a variety of floor-based routines with various strength class options.
Starting today, the revamped membership plans and Gym feature will be accessible in all five markets where Peloton operates, including the United States, Canada, the United Kingdom, Germany, and Australia.
It is essential to note that the new subscription plans do not replace the standard $44 per month Peloton subscription required for engaging in classes on the company's home equipment.
In a statement, Peloton’s Chief Marketing Officer Leslie Berland said, “With this brand relaunch, we’re reflecting the vibrancy and fullness of everything Peloton has to offer to everyone. We’re shifting perceptions from in-home to everywhere, fitness enthusiasts to people at all levels, exclusivity to inclusivity across all Peloton Members, present and future. Our Instructors and Members live and breathe the true Peloton experience every day. We’re excited to bring that energy and inspiration out into the world.”
The popularity of Peloton grew during the pandemic as individuals sought ways to exercise at home when confined. However, with the reopening of gyms, the demand for the company's equipment declined. Peloton's CEO, Barry McCarthy, who joined the company last year, informed investors that the company's 'path to the promised land' is its mobile app.
Today's announcement emphasizes Peloton's efforts to reduce its reliance on hardware sales. The company is targeting customers who might not afford its hardware equipment with these new subscription options. Focusing on service revenue is a logical step for Peloton, as the company generated nearly $290 million from subscriptions in the last quarter while losing more than $17 million on its hardware.
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