Peloton CEO Barry McCarthy has announced the company will relaunch its brand in May 2023 in an attempt to show off other offerings beyond its trademark exercise bikes.
Part of the rebranding will include a re-launch of the Peloton app, which now features a new tiered subscription structure.
On the company’s Q3 earnings call, Liz Coddington, Peloton’s CFO, said app tiers would offer different content depending on the price. Users looking to get everything the company has to offer will have to have previously purchased Peloton hardware and pay for an All-Access membership.
McCarthy also noted that the unaided awareness for the Peloton Row is at four percent, and its camera-based strength training device, the Guide, is sitting at an abysmal 1 percent. The Peloton app garners the most awareness in “non-bike” products with 5 percent, indicating that rebranding to focus on other elements of the company’s arsenal may not be such a bad idea.
Coddington also noted that the Row sales are “heavily skewed” toward existing Peloton users.
This gives the fitness company a real chance at breaking through to new customers, as a $13 USD (approximately $17.60 CAD) monthly fee for access to Peloton’s classes could be more appealing than $1000+ exercise bikes. The CEO stated that revenue from subscriptions exceeded hardware by 100 million this quarter.
McCarthy doubled down on his support of switching to a more content-based structure, saying, “The magic and the glue that binds the community with almost religious fervour amongst our members is the content and the instructors.”
The company also saw growth in its new bike leasing program, which just launched in Canada, and in partnerships with Amazon and Hilton.
The change looks to come at a good time, with Peloton not showing favourable results in 2022, including a reported net loss of $275.9 million USD (roughly $373 million CAD). Hopefully, a shift to focus more on content than hardware will help the company in the future.
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