Peloton Will Lower Bike Prices, Raise Subscriptions
Peloton's treadmill is set to get cheaper as well.
- Master's degree in environmental journalism
Peloton Bike prices may be dropping soon.
Peloton aims to recover from a late-pandemic slump by lowering equipment costs and raising subscription prices, the company said on Thursday. Peloton will make its Bike , Bike Plus and Tread cheaper, by up to $500, starting at 3 p.m. PT (6 p.m. ET) on Thursday, as previously reported by CNBC.
In June, subscriptions to Peloton's online library of fitness content will go up in price in the US and Canada. A subscription in the United States, now $39, will cost $44, and one in Canada will increase from $49 to $55. Subscriptions in other countries are unchanged for the moment.
Bikes will cost $1,445 instead of the current $1,745. Bike Plus will cost $1,995 instead of $2,495. Peloton's Tread will go for $2,695 instead of $2,845, Peloton said. Some of those costs include shipping and setup.
Peloton said the subscription hike is the first in eight years, during which its catalog of online content has grown dramatically. The company framed the cheaper equipment as reducing the barrier to entry.
The changes come as part of a push by the company to rejuvenate its business after it fell off as concern over the pandemic waned. A pandemic era success story, Peloton has since conducted major layoffs, shaken up leadership and debuted new subscription models. Other firms have reportedly considered purchasing the company. Activist investors are pushing for a sale of Peloton, CNBC reported Wednesday.