As connected equipment sales slow, Peloton is all-in on content.
The latest: After teasing big changes earlier this month, Peloton unveiled its next chapter.
Downplaying its smart bike, the company announced a rebrand, new app tiers, and an expanded content offering.
By adding three membership levels (free, $12.99 per month, and $24 per month), Peloton now offers five plans, not including its hardware rental program.
Plus, the company debuted Peloton Gym, providing programming and instructional videos to be completed at the user’s own pace as opposed to its typical class format. As the name suggests, members can now use Peloton in the gym for strength-based workouts.
Beyond the bike. According to the company, the majority of workouts completed by Peloton members in the past quarter were non-cycling activities.
Combined with the fact that subscription revenue supplanted connected equipment sales over the same period, it’s no wonder why Peloton is betting the future of its business on more people paying for access to its content.
Looking ahead: Dubbed a “mobile gateway” by CEO Barry McCarthy, Peloton views its updated app as an on-ramp to its ecosystem. While the freemium offering may appeal to a broader audience, whether or not they upgrade to paid tiers will make or break McCarthy’s “good, better, best” strategy.