Peloton is hiking the monthly fee for its on-demand fitness content for the first time ever, while it also slashes the prices of its Bike, Bike+ and Tread machines in a bid to reach new customers under Chief Executive Barry McCarthy.
McCarthy, who has been at the helm of the company for a little over two months, is set to announce the sweeping changes internally Thursday. It comes as Peloton is attempting to turn around a recent sharp decline in its share price.
Peloton shares initially jumped on the news before they were halted shortly after 11 a.m. for trading volatility. Shares resumed up slightly but recently were down around 4 percent.
Peloton announces major cuts and new leadership
Feb. 8, 202201:31
McCarthy, a former Netflix and Spotify executive, has been candid in recent press interviews about what he viewed as an opportunity at Peloton to cut hardware costs . This, in theory, would lower the barrier to entry for a consumer, and then the company could pivot its focus to growing monthly recurring revenues.
“The pricing changes being announced today are part of CEO Barry McCarthy’s vision to grow the Peloton community,” a company spokesman told CNBC.Effective June 1, the price of Peloton’s all-access subscription plan in the United States will go up to $44 per month, from $39. In Canada, the fee will rise to $55 per month, from $49. Pricing for international members will remain unchanged, Peloton said. The cost of a digital-only membership, for people who don’t own […]