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Peloton is increasing its subscription fees starting June 1 – TechCrunch

peloton announced today that it is increasing the price of its subscription fees in the United States and Canada. Effective June 1, the cost of the company’s all-access plan will increase from $39 to $44 in the United States and $49 to $55 in Canada. Peloton notes that this is the first time it has increased its subscription fees. The cost of Peloton’s digital-only plan remains the same at $12.99 per month.

“Creating exceptional content and an engaging platform comes with a cost, and this price increase will help us continue to serve our members,” the company said in a press release. “International membership pricing is currently unchanged as we continue to expand our content library for our global audience.”

Peloton new prices

Photo credit: peloton

The company also announced that it will lower the price of its exercise equipment throughout the day to make its hardware more affordable. Peloton says the move is a “strategic decision to play for size and increase market share.”

Peloton didn’t elaborate on the gear pricing change, but CNBC reports that the Peloton Bike costs $1,445 including a shipping fee of $250 instead of $1,745. The Bike+ is reportedly now $1,995 down from $2,495 and the Tread will drop from $2,845 to $2,695, including a $350 shipping fee. CNBC reports that the gear price changes are scheduled to go into effect at 6:00 p.m. ET today.

The company stated that the pricing changes it is announcing today are part of new Peloton CEO Barry McCarthy’s vision to expand the company’s community. McCarthy, a former Spotify and Netflix exec, took over at the helm of the company after the former Peloton CEO John Foley resigned. At the same time, the company cut 2,800 jobs.

Peloton gained popularity during the pandemic as gyms closed and lockdowns confined people to their homes. But the company has had a rocky year so far, having to pause bike and treadmill production in January due to slowed demand.

The company’s new lower device costs could help Peloton attract new customers and earn revenue from recurring subscriptions from these new users.

Today’s changes aren’t the only ways Peloton hopes to bounce back, as last month the company launched a pilot program called “One Peloton Club,” which gives members the opportunity to rent a Peloton bike for a monthly fee. The company hasn’t given pricing for the program, however The Wall Street Journal reports that subscriptions cost between $60 and $100 per month. The program is currently available in select markets in the United States.

Peloton is increasing its subscription fees starting June 1 – TechCrunch Source link Peloton is increasing its subscription fees starting June 1 – TechCrunch

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