Peloton has debuted new membership tiers as it rebrands to focus on exercise, not hardware.
“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,” Leslie Berland, the fitness company’s chief marketing officer, said in a news release Tuesday (May 23).
“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.”
The release points to company data showing that more than half of all its workouts during its most recent quarter were not cycling related. Peloton indicated the rebrand was forthcoming at the time of its earnings report earlier this month.
“Our goal in relaunching the app is to engage new categories of customers, drive top-of-the-funnel awareness for Peloton, and become a meaningful contributor of revenue for our business,” CEO Barry McCarthy said in a letter to shareholders .
With that in mind, the company says it has rebranded to reflect an environment that mirrors the experience of members who use all of its services, which include yoga, meditation and strength, “the most popular form of fitness for Peloton’s digital subscribers.”
Peloton says it will broaden access to this range of content by offering “the most expansive collection” of free classes on its app since it launched five years ago.
The company has also added three new membership tiers for its app: a basic, no-cost membership called Peloton App Free, which offers more than 50 classes; Peloton App One, a paid plan which offers access to thousands of classes, and the premium-level Peloton App+, for the user “who wants frictionless, unlimited access to Peloton’s vast library.”
On a call with analysts earlier this month, McCarthy said the world may not know how vast that library actually is.
As PYMNTS reported, he said that Peloton is chiefly thought of as a bike company, though the “behavior of its members extends well beyond cycling into various categories of exercise, and a significant portion of them do not use hardware at all.”
The CEO admitted that the company has not effectively communicated this to potential subscribers, and said it is working to improve on that.
Peloton Chief Financial Officer Liz Coddington added that the company’s key focus is efficient subscriber growth. While Peloton expects to target a lower lifetime value to customer acquisition cost ratio in this quarter, it plans to observe financial discipline and not overspend on media or reduce prices to chase unprofitable subscribers.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More