Peloton CEO Peter Stern has once again signaled that a monthly subscription price increase for Peloton hardware owners could be on the horizon; a topic he has now addressed multiple times, including during the company’s two latest quarterly earnings calls.
In the most recent earnings call earlier this month, Stern emphasized that pricing remains a critical lever in their strategy. This was in response to a question about how Peloton plans to return to growth
Notably, he pointed out that it has been nearly three years since Peloton last raised their All-Access subscription prices in the U.S. – and in addition, the company has never implemented a price increase for its international subscribers. Stern stated:
“Regarding the subscription price increase, I don’t have anything to say today, except to note that it’s been almost three years since we did a subscription price increase and we’ve never done one internationally. We feel really good about the value we provide. So, it’s something that we continue to take a look at.”
This follows his previous comments during the February 6 earnings call, during which he confirmed Peloton was “taking a hard look at pricing” as part of a broader effort to improve unit economics. At that time, Peloton had already increased the price of its Rower in North America and both Bike models in international markets – but subscription pricing remained untouched.
While Stern stopped short of confirming any changes this month, his tone suggests that a price hike – especially internationally – is not only on the table, but potentially even overdue.
Later in this month’s call, Stern reiterated that pricing is a key part of Peloton’s long-term growth strategy. He stated:
“So, the first part of the strategy that you heard me talk about was improving member outcomes. And what that does is deliver more value to our members and that’s going to translate into members being willing to pay more for Peloton and buying more things from us. And so, you can look at that as the key to increasing average revenue per member.”
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 – the first time in nearly a decade the company had increased its subscription pricing. Since then, Peloton has focused on stabilizing its finances and reducing operational costs; but as Peloton looks to grow its top-line revenue, subscription pricing could be a tool they are preparing to use.
As a reminder, owners of Peloton hardware like the Peloton Bike, Tread, and Row need to stay subscribed to the “All-Access Membership” in order to continue to have access to Peloton classes and the full set of features of their Peloton device.
For now, no changes have been announced; however, given the consistency of Stern’s messaging and the long gap since the last adjustment, members may want to brace for potential pricing news in the not-too-distant future.
For all the information shared in Peloton’s latest earnings call on May 8, check out our overview article.
Support the site! Enjoy the news & guides we provide? Help us keep bringing you the news. Pelo Buddy is completely free, but you can help support the site with a one-time or monthly donation that will go to our writers, editors, and more. Find out more details here.
Get Our Newsletter Want to be sure to never miss any Peloton news? Sign up for our newsletter and get all the latest Peloton updates & Peloton rumors sent directly to your inbox.
Leave a Reply