- Peloton has raised its subscription price for the first time in its 8 years of existence.
- It will increase to $44 a month from $39 in the US.
- The company is also cutting bike prices to try and lure in more customers.
Peloton is raising the price of its class subscription service for the first time in the membership program's eight years of existence.
The monthly charge, which can bring bike users an array of online classes and programs, is going to $44 a month from $39.
"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," the company said in a statement Thursday announcing the change.
The new prices will take effect on June 1.
The company added its content subscription program has become more robust since it launched in 2014, from six instructors and less than 400 monthly classes produced to 54 instructors and over 1,000 monthly classes.
You don't need the subscription to use Peloton bikes. But without it you can only access three pre-recorded classes and the "Just Ride" feature, per the company.
Peloton was extremely popular during the early pandemic. But after a rocky several months for the company, with layoffs, a new CEO, and plunging stock value, this move seems a likely bid for more consistent revenue.
An activist investment firm that has a 5% stake in the company, per the Financial Times, dug into the company Wednesday, saying the new CEO, Barry McCarthy, had not delivered on real changes for the company and that "the best option is to sell Peloton."
Insider reported in March that Goldman Sachs was talking with former CEO and founder John Foley about putting up restructuring the personal loans Foley took out based on his shares in Peloton -- i.e., to put up more collateral, since the company's value has declined.
Peloton also announced Thursday it would trim the prices of some of its hardware as follows:
- The original peloton bike: was $1,745 and now will cost $1,445, with the $250 shipping fee included.
- The "Bike+": was $2,495, now will cost $1,995 (no extra shipping costs).
- The treadmill, "Tread": was $2,845, now will cost $2695, with the $350 shipping fee included.
"We want more people to be able to afford our hardware. This is a strategic decision to play for scale and increase market share," the statement added.