Peloton is revamping its workout app to offer users three different tiers, including a new free tier and an upscaled one that costs $24 per month. The company announced on Tuesday that it’s looking to rebrand as a fitness company for all, as opposed to being known as an in-home bike company.
The first tier is called Peloton App Free and provides more than 50 classes across 12 fitness categories. The tier includes a rotating set of featured classes that will be refreshed on an ongoing basis but does not include live classes.
The middle tier, which is called Peloton App One, already existed prior to the revamp and costs $12.99 per month. It includes unlimited access to thousands of classes across 9 of Peloton’s 16 modalities, including Strength, Meditation, Outdoor Walking, Yoga, and more as well as all the classes included in the free tier. App One Members can take up to three equipment-based cardio classes per month (Cycling/Tread/Row). New on-demand and live classes will be offered to members, along with access to Peloton’s Challenges, Programs and Collections.
The third tier, called Peloton App+, costs $24 per month and includes unlimited access to Peloton’s library, not including Lanebreak or Scenic classes. This tier includes all of App One’s offerings and unlocks access to thousands of equipment-based cardio classes to take on any indoor bike, treadmill or rower. This tier offers exclusive access to classes.
Peloton’s revamped app also includes a new “Gym” function that allows users to take the app into the gym with them. The feature is available across all membership tiers. The company notes that this launch marks its first offering in which workouts are written out, demoed in a supporting video and designed to be done at the user’s own pace. Members will get access to a series of floor-based routines where they can choose between different strength class types.
The revamped membership tier and Gym feature will roll out in all of the five markets where Peloton is available starting today, including the United States, Canada, the United Kingdom, Germany and Australia.
It’s worth noting that the new tiers aren’t substitutes for the standard $44 per month Peloton subscription that is required for doing classes on the company’s home equipment.
“With this brand relaunch we’re reflecting the vibrancy and fullness of everything Peloton has to offer to everyone,” said Leslie Berland, Peloton’s chief marketing officer, in a statement. “We’re shifting perceptions from in-home to everywhere, fitness enthusiasts to people at all levels, exclusivity to inclusivity across all Peloton Members present and future. Our Instructors and Members live and breathe the true Peloton experience every day. We’re excited to bring that energy and inspiration out into the world”
Peloton rose to popularity amid the pandemic as people were confined to their homes and looked for ways to work out at home. As in-person gyms reopened, demand for the company’s equipment dropped. The company’s CEO Barry McCarthy, who was brought in last year, told investors earlier this year that the company’s “path to the promised land” is its mobile app.
Today’s announcement indicates that Peloton is looking to make itself less dependent on selling hardware. With these new offerings, Peloton is hoping to attract people who may not be able to afford its hardware equipment. It makes sense for the company to focus on services revenue, as Peloton made nearly $290 million from subscriptions last quarter, and lost more than $17 million on its hardware.
Source @TechCrunch
