Peloton lowers Price on its bikes and Raises subscription cost on workouts
Peloton hikes its monthly subscription price
Price Changes
The monthly fee for Peloton’s connected fitness content is now $44/month up from $39/month. This is an increase of $60/year in the USA. Canada will increase from $49 to $55. Subscriptions in other countries are unchanged for the moment. The cost of the digital-only membership, which works without Peloton equipment, remained unchanged at $12.99/month.
““There is a cost to creating exceptional content and an engaging platform, and this price increase will help us continue to deliver for our members.” ”
Peloton Equipment Prices Lowered
Meanwhile Peloton cut the prices of its Bike, Bike+ and Tread machines attempting to reduce inventory and gain new members. New CEO Barry McCarthy is bringing down the cost to become a Peloton member by lowering the initial price of the bike and buying it at Amazon while growing monthly recurring revenues. McCarthy believes this new pricing strategy will ultimately grow the Peloton community. This is a strategic decision to play for scale and increase market share.
Peloton has Competition
Peloton now faces significant competition from NordicTrack with its S27i and S22i Commercial Studio Bikes as well as other players like Echelon, and the SoulCycle at-Home Bike.
Nordictrack S27i and S22i Bikes
Nordictrack S27i Studio Bike with its 27-inch touchscreen
Powered by iFit NordicTrack bikes incline 20% and decline -10%, with automatic resistance adjusting to the workouts elevation or the studio instructor’s lead. iFit also features AutoAdjust a smart option that will increase or decrease the intensity of the workout based on your prior performance. It learns as you get stronger to build endurance.
iFit's monthly workout subscription cost is $39/month, the first month free, with trainer-led workouts across an impressive array of scenic locations worldwide. iFit has an interesting line-up of live trainer-led races like the NYC and Boston marathons and 5K to 10K races around the country. The NordicTrack S27i has the only 27” touchscreen in the indoor bike market Read Full S27i Bike review here — and there is also a 22-inch version, the NordicTrack S22i Studio bike.
New Peloton Rental Option
Peloton now is offering a rental option called “One Peloton Club” where you can cancel at any time and return the bike for free. There is an initial delivery fee of $250 and a monthly rental of $60-$100 which includes the $44 subscription for access to the workout library + bike rental. The rental program includes both the original Peloton bike (no auto-adjust of resistance) and the Bike+ which has a swivel screen for off the bike workouts and auto-adjusts the resistance. Auto-adjust lets the rider focus on the workout. The rental program is available in a limited number of locations across eight states.
New workout types to add value for Peloton members
Peloton continues to roll out new class types, from yoga to meditation to kickboxing to give its members more for their money. Peloton has added content, disciplines, music, instructors, and new features, across three products: the Peloton Bike, Tread, and Guide. You can get the Peloton bike at Amazon here
