Peloton’s newly appointed CEO Peter Stern has yet to make a decision on whether or when the company will increase its subscription prices.
This uncertainty comes after Peloton’s interim leadership had previously indicated that such a decision would fall to the incoming CEO.
During Peloton’s latest earnings call, an analyst inquired about potential price increases in light of improving churn rates. In response, Stern acknowledged the importance of pricing as a key business lever and emphasized that the company is carefully evaluating its approach. He stated:
“With regard to pricing, to state the obvious, pricing is a powerful lever with every change up or down essentially dropping straight to the bottom line. So we’re taking a hard look at pricing alongside everything else in our business.”
While he did not commit to any specific changes, he pointed to recent pricing adjustments made to hardware as part of Peloton’s broader strategy to improve unit economics. In Q1, the company increased the price of the Row in the United States and Canada, and raised prices for the Bike and Bike+ in international markets. Additionally, Peloton adjusted its holiday promotional strategy, reducing the number of discounted days and restructuring promotions for a greater financial impact – a plan that was first announced in September of 2024. Stern explained during the earnings call:
“We also improved our hardware unit economics by reducing the number of days that we were on promotion and by structuring our promotional strategy to better align with the margin profile of our products. So all of that added up to greater discipline, as well as some terrific learning opportunities for us around pricing.”
As for subscription pricing, Stern reassured members that the company understands its significance both for customers and Peloton’s overall financial performance. Any decision regarding a price increase would not be taken lightly. He stated:
“I think a question that might be in everybody’s mind is around subscription pricing. We know how important subscription pricing is to our members, as well as to the performance of the business and we won’t take any actions there lightly.”
Peloton last raised its subscription fees in April 2022, increasing the cost for its All-Access Membership to $44 per month while reducing the price of its hardware. This was the first time in nearly a decade that the company had increased its subscription pricing.
Peloton first announced Stern as their new CEO last October, and he officially began the role on January 1, 2025.
For all the information shared in Peloton’s latest earnings call on February 6, check out our overview article.
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I would say Peloton’s instructors are a bit more ‘real’ than Apple Fitness’s the price difference definitely has become unjustifiable over time. For a similar ‘investment’ for Apple services I get Fitness, AppleTV, Music, Gaming, News and 2TB of storage VS Peloton I get their fitness app, that’s it. So, from value for money POV it got incredibly harder to justify staying on the platform. The CEO needs to be aware of market competition and the churn that a price increase would cause. Aint no better if you raise the price and lose more customers and net out at less revenue per month. Fine line to walk, indeed.
If the price goes up i am out. Unless Peloton calls all employers and gets them to give raises, all the prices have increased, and this is one thing i can cut. And multiply by 12 months….
Thank you i will be looking into apple fitness, if this price goes up I am going to def. Try it
I do not the price of the Apple fitness?
I have the full access Peloton membership which is direct to the bike , tread and tower. It can be used, which most people know,already, any bike or treadmill and rower.
The app is included with full access.
If there’s any raise, it should only be to app users which are really paying Pennie’s on the dollar. Don’t mess with the full access members. That’s dangerous ! And price went from $39.00 to $44.00. Please don’t chase me away.
As students have gotten a discount, peloton should consider a discount for 55 and better.
I think though they are meaning subscription price for hardware rather than app. Rises could people off investing in hardware. Those with hardware are left with a very expensive bike/ treadmill without content so most would stay but you would lose some.
I think they should come and fix my rusting £2000+ bike before they raise any subscription pricing!!