Peloton’w new CEO Barry McCarthy suggests the company is exploring an app store and a reinvented subscription model for the company.
In an interview with New York Times’ DealBook, McCarthy says that this would be an attempt to kickstart sales as things have stagnated for the fitness brand.
The CEO likes the idea of an app store being featured as a part of their products, allowing third-party content to be made available on the platform. McCarthy mentions that “Today, [Peloton} is a closed platform — but it could be an open platform and part of the creator economy.”
The executive thinks this effort could widen the scope of what the company offers, including services like running a Peloton app store and such from outside their walled garden.
He says that Peloton is much more than just hardware now and that it is more about the experience including the music, instructors, and community features.
Looking even further down the line, McCarthy hints at the possibility of shaking up the fitness company’s subscription model. He says the company wants to find a “sweet spot” between the pricey cost of Peloton hardware and the subscription it offers. The CEO ponders on a future where the upfront cost is much lower but with a higher subscription fee of between $70 and $80.
This is in stark contrast to the upwards of $1000 it can cost to get a piece of Peloton equipment with a $39 a month subscription fee.
Image credit: Peloton
Source: New York Times