Platoon announced in a Press release today (via CNBC) that plans to increase the cost of its all-access subscription for live and on-demand classes from $39/month to $44/month beginning June 1, 2022. However, the new lower prices for the equipment of Peloton exercise are ready to go. from 6 p.m. fee) from $2,845.
The change only applies to customers in the US and Canada and does not affect the $12.99/mo app-only membership. As CNBC noted, the subscription price in Canada will go from $49 CAD to $55 CAD, but there’s no telling how much the kit will cost.
The lower cost of equipment could help attract customers who may have been intimidated by the company’s high prices and gives Peloton an opportunity to earn more revenue from recurring subscriptions. This, in addition to bike rental program is testingalso helps Peloton get rid of the excess inventory it got from make too much team Come in low demand.
“We want more people to be able to afford our hardware,” Peloton said in a press release. “Creating exceptional content and an engaging platform comes at a cost, and this price increase will help us continue to serve our members.”
Peloton CEO Barry McCarthy, who previously served as an executive at Spotify and Netflix, took the helm in the company rockiest point in its history. The hinted at Peloton’s business review earlier this year and said he wanted to find the “sweet spot” between equipment and subscription costs. This meant drastically lowering the price of Peloton’s training hardware while increasing their subscription prices, potentially to “$70 or $80”. McCarthy hasn’t raised costs as much, but modest price adjustments indicate he’s delivering on his promise.
Update April 14 at 1:10 pm ET: Updated to clarify that the change will not affect customers outside of the US and Canada and will not change the price of the app-only membership. Updated subscription prices in CAD have also been added.
