Peloton is revamping its workout app to offer users three different tiers, including a new free tier and a premium one that costs $24 a month. The company announced Tuesday that it wants to rebrand itself as a fitness company for everyone, as opposed to exercise bike companies.
The first tier is called Peloton App Free and provides over 50 classes in 12 fitness categories. The tier includes a rotating collection of custom classes that will be updated on an ongoing basis, but does not include live courses.
The middle tier, called Peloton App One, already existed before the overhaul and costs $12.99 a month. It includes unlimited access to thousands of classes in 9 of Peloton’s 16 modes, including Strength, Meditation, Outdoor Walking, Yoga, and more, as well as all classes included in the free tier. App One members can do up to three equipment-based cardio sessions (Cycle/Walk/Row) per month. Members will be offered new on-demand and live classes, as well as access to Peloton challenges, programs and collections.
The third tier, called Peloton App+, costs $24 per month and includes unlimited access to the Peloton library, excluding Lanebreak or Scenic classes. This level includes all of App One’s offerings and unlocks access to thousands of equipment-based cardio workouts on any indoor bike, treadmill, or rower. This level offers exclusive access to classes.
Peloton’s updated app also includes a new Gym feature that allows users to take the app with them to the gym. The feature is available at all membership levels. The company says this launch marks its first offering where workouts are written, shown with video support, and designed to be done at the user’s own pace. Members will have access to a variety of floor-based modes where they can choose between different power types.
The updated membership tier and gym functionality will roll out in all five markets where Peloton is available starting today, including the United States, Canada, the United Kingdom, Germany and Australia.
It’s worth noting that the new tiers don’t replace Peloton’s standard $44 per month subscription, which is required to take classes on the company’s home equipment.
“With this brand relaunch, we reflect the vibrancy and richness of what Peloton has to offer everyone,” Peloton Chief Marketing Officer Leslie Berland said in a statement. “We’re changing perceptions from home to everywhere, fitness enthusiasts at all levels of people, exclusivity to inclusivity for all current and future Peloton members. Our instructors and members live and breathe the true Peloton experience every day. We’re excited to bring that energy and inspiration to the world.”
Peloton gained popularity amid the pandemic as people were confined to their homes and looked for ways to exercise at home. After personal gyms reopened, demand for the company’s equipment dropped. The company’s CEO Barry McCarthy, who was brought in last year, told investors earlier this year that the company’s “path to the promised land” was the mobile app.
Today’s announcement shows that Peloton is looking to make itself less dependent on hardware sales. With these new offerings, Peloton hopes to attract people who might not be able to afford its hardware. It makes sense for the company to focus on services revenue, as Peloton made almost $290 million in subscriptions last quarter and lost more than $17 million on its hardware.