New information has surfaced, courtesy of Bob Treemore on Twitter, that indicates what some of the changes to the Peloton App could be in 2023. As we’ve previously covered in detail – Peloton CEO Barry McCarthy has talked many times over the last several months about how Peloton plans to change up their digital strategy in 2023, and that includes new pricing tiers.
Before diving into these changes, note that at this time, the information does not point to any changes to the Peloton All-Access membership – which is the membership you have if you own the Bike, Tread, or Row. These changes and new tiers described below are currently believed to only apply to those members who only have digital access – or those who subscribe without purchasing any hardware.
Also keep in mind that this information at this point is rumored, and could possibly still be subject to change before launch (including the final tier names).
According to Treemore, the highest level tier for Peloton Digital users that will be available will be called “Peloton App+”. This version is likely to include unlimited access to the majority of class types. In many ways, the Peloton App+ subscription could be similar to what members currently have on the Peloton app today. It would also likely include either an unlimited number of classes per month or a much higher limit than lower-tier plans.
A lower level tier on the Peloton app will be known as the “Peloton App Essential”. The big differentiator here will be that this tier might be limited to only being able to take a certain number of classes a month. Additionally, it’s rumored that App Essential might not have access to as many class types or modalities. Treemore does not elaborate on this, however, one could see a scenario where the App Essential plan only has access to a subset of class types – and users can either opt in for a small upgrade to other class types, or that is used as a nudge to upgrade to the Peloton App+ tier.
In addition, Treemore reports that some classes on Peloton might begin to be flagged as “premium”, or exclusive, classes. It’s not clear yet what criteria will be used to designate a Peloton premium class. However, access to the premium classes is likely to be another differentiator between the Peloton App+ and Peloton App Essential subscriptions. This could work in a number of ways: App Essential users can’t access premium classes, while App+ users can. Or, it works based on a credit system, and App Essential users get a small number of premium class credits, while App+ users get a higher (or unlimited) number of premium class credits.
This designation of some classes as “premium” lines up with comments from the past year by McCarthy – who specifically mentioned in the Q4 2022 earnings call that:
“There’ll be various price points and you’ll have access to different kinds of content depending on how much you pay for the digital app.”
Later on, McCarthy said:
“I’m going to hold off on talking about the digital strategy until we roll it out, other than to say that it will have a premium component and there will be a gated component”
Treemore reports that the App+ tier might also grant those subscribers access to “special events”. It is not yet known what would be considered a special event – but with all the recent appearances of celebrities appearing in the studio for classes, one could imagine those celebrity appearances being considered special events.
One data point not mentioned in Treemore’s report is a third “freemium” tier – which McCarthy has previously said is in the works. In that same earnings call, McCarthy had said:
“And with respect to the digital app strategy, I had previously told investors that I wanted us to pursue a freemium strategy, we are going to implement that.”
Based on the other proposed tiers above – we could hypothetically see a freemium tier where Peloton hand-selects a limited number of classes, which are possibly rotated out at certain intervals, that are available to users who are not on the App Essentials or App+ tiers. Those freemium users could take those classes as many times as they wanted – but if they wanted access to more of the on-demand library, would have to upgrade to one of the paying tiers. The assumption would be that users are going to love the free classes, and that will entice them to upgrade to a paying membership where they can have more access. Given Peloton’s naming scheme, and with one of the pricing plans being called “App+”, one could see Peloton naming this freemium tier just the “Peloton App” tier (compared to “App+”), or something more generic like “Peloton App Basic.”
Unfortunately, the information shared today does not give an indication of what the price point will be for the Peloton App Essential and Peloton App+ tiers. However, Treemore points out that it does appear members will have the option to subscribe either monthly or annually – which we previously reported about at the beginning of November.
You can see Treemore’s original Tweet with the information here.
What are your thoughts on these new rumored pricing plans & tiers for the Peloton app?
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