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#PELOTON TO LAUNCH NEW APP TIERS TO DIVERSIFY BRAND
Peloton, the fitness brand known for its luxury indoor bike, is launching new tiers for its app with varying subscription prices to expand its brand beyond cycling. In a recent investors call, Peloton’s CEO Barry McCarthy expressed his concern about the company being exclusively identified as a bike company. As a result, the company aims to relaunch and reposition its brand. The new app tiers are part of this effort to differentiate Peloton from its current perceived image.
#TIERED APP SUBSCRIPTION OFFERINGS WITH VARIED CONTENT
Peloton has yet to disclose the pricing details of its new app subscription tiers, which will offer different levels of access to its content. Those with All-Access memberships who have purchased Peloton hardware will have access to the entire range of content. The app, which is the most promising of Peloton’s non-bike products, will have a more diverse range of offerings with the new tiered subscription structure.
#REPOSITIONING OF BRAND TO OVERCOME CHALLENGES
Peloton is facing several challenges, including a net loss of $275.9 million, its ninth consecutive quarter of losses and wider than expected. In addition, they had legal friction with other companies, such as Dish, adding more pressure on the brand financially. The relaunch of its brand and the app’s subscription tiers is Peloton’s attempt to overcome these obstacles. The company is optimistic that these measures will improve its future performance and restore investor confidence.
#FUTURE OUTLOOK FOR PELOTON
Peloton sees its app as the key to its success. Revenue from subscriptions exceeded hardware in the last and current quarter. CEO McCarthy recognizes that Peloton offers much more than just a bike, with other products such as the Peloton Guide, which is at a measly one percent in unaided awareness, and the Peloton Row sitting at four percent. Furthermore, Peloton has had success with its partnership with Hilton and Amazon, its bike leasing program, and the decision to sell refurbished bikes at discounted prices. As Peloton diversifies, it hopes to regain the public’s trust and outpace its competitors.
Sources:
– https://investor.onepeloton.com/
– https://www.cnn.com/2022/08/25/investing/lululemon-retail-earnings-mirror-subscription/index.html
– https://www.nytimes.com/2022/08/24/technology/mirror-lululemon-virtual-workout.html
