Peloton Announces $5-Per-Month Price Hike for Its Subscription Service
Peloton has seen some big shake-ups in the past few months, and the latest move is a price hike on its All-Access Membership in North America.
Starting June 1, the All-Access subscription will jump from $39 to $44 per month ($49 CAD to $55 CAD). The app-only subscription will remain $12.99 per month.
"There's a cost to creating exceptional content and an engaging platform, and this price increase will help us continue to deliver for our members," Peloton said in a statement.
Peloton notes that it hasn't increased membership prices in eight years. To soften the blow, it's examining the "price of hardware relative to the subscription...to reduce barriers to entry." It already dropped the price of its first exercise bike from $1,895 down to $1,495 in August, but the Peloton Bike is now $300 cheaper at $1,195, plus a $250 delivery and installation fee.
The Peloton Bike+ has dropped $500 to $1,995 and includes the cost of delivery and setup. Meanwhile, the Peloton Tread has only received a $150 price cut, bringing it to $2,345 with a $350 delivery and setup fee.
Last month, Peloton announced a limited subscription offering called One Peloton Club that combines its Peloton All Access Membership with a Peloton Bike rental. It's now adding Bike+ to the pilot program "so we can continue to gather data that will drive our decision making," it says.
Earlier this year, Peloton laid off 2,800 employees across the globe and cancelled plans to build a US factory amid waning interest following a pandemic boom (not to mention PR headaches over last year's recall). John Foley also resigned as CEO and was replaced by Barry McCarthy.
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