Peloton to hike monthly fee for on-demand fitness content

Peloton saidAs it looks to increase its customer base, it will raise its monthly fee for on-demand content in the United States of America and Canada. It will also reduce the prices for its Bike, Tread and Bike+ products in all markets.

This move follows Blackwells Capital, a shareholder. saidThe exercise equipment manufacturer has not fulfilled its promises to transform the business. 

CNBC first reported that the hike would take effect on June 1, after eight years of no price increases.

Peloton’s all access subscription plan will cost US$44 per monthly, up from US$39. In Canada, however, the fee will be C$55 per per month, up from C$49. saidIn a blog post.

Pricing for international members will not change. The company did not provide details about the price reductions in equipment.

Peloton was a darling of the pandemic-era, but its stock price fell as more people went to the gym. Shares have fallen about 30% since December 2013.

Peloton is exploring different pricing models in selected U.S. markets as it seeks to return to profitably. The company launched its strength training product, Peloton Guide, earlier this month at US$295, which is 40% lower than the original plan.

Peloton shares surged as high as 6 percentage points before trading down to 1.3 percent.

(Reporting done by Kannaki Deka, Bengaluru; Editing done by Shailesh Kuber)