Yahoo! Finance has published an interview with new Peloton CEO Barry McCarthy in which, among other things, he clarifies that the All Access membership price of $39 is not likely to change.
In previous interviews both with The New York Times and The Financial Times McCarthy has mentioned numerous times the idea that Peloton will adjust its pricing structure in the future. The $39 per month All Access members (those who own a Bike or Tread device) pay has remained constant since Peloton’s initial Kickstarter campaign.
In his most recent interview, McCarthy explained the adjusted pricing would apply to new members: “Peloton will soon be testing new pricing to attract new members. The $39 price for existing members is not going away, McCarthy said.”
His New York Times interview provides some additional context: Peloton could potentially sell subscriptions with a low entry price – instead of paying for the Bike or Tread up front (currently costing $1,745 for the Bike; $2,745 for the Bike+, and $2,845 for the Tread), you would pay less at the point of purchase, but the monthly fee would be higher.
This is not the only news from this interview. McCarthy also maintained that there are no plans to sell the company in the near future: “‘I came here for the comeback story,’ McCarthy said, noting he is moving his family to New York City (the home of Peloton HQ) from California. ‘I am coming here and it’s not to sell the business.'” We have previously reported on potential interest from Amazon and Nike in acquiring Peloton.
McCarthy also confirmed that Peloton is continuing to work on the development of new products. A recent report from The Financial Times revealed new details about the Peloton Rower and a second strength device (separate from the upcoming Peloton Guide) currently in the works.
In addition, McCarthy said that Peloton is open to adding external partners in order to improve member experience.
Perhaps one of the biggest takeaways is McCarthy’s optimism for the future of Peloton:
McCarthy is hesitant to put a timeframe on when Peloton will be fully turned around. But, he believes it can — and will — be done.
“With all the cash on the balance sheet and the love for the brand, if we can’t figure out how to make that into a successful business I should have stayed in retirement,” McCarthy said.
Though Yahoo! Finance has not published the full interview with McCarthy, you can read their report here.
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