Peloton Brand Relaunch & Peloton App Tiers Coming in May

This morning during Peloton’s FY Q3 2023 earnings call and shareholders’ letter, CEO Barry McCarthy disclosed two significant updates slated for May 2023.

Firstly, the Peloton App is set for a relaunch with tiered pricing. Secondly, Peloton plans to rejuvenate its brand for enhanced communication of its value proposition.

McCarthy had previously discussed app tiers in depth, which we summarized in December. Earlier, we also shared speculations about the app’s potential tiers and content.

Today’s announcement fixes a timeline – confirming that Peloton app’s tiered pricing will roll out in May.

The shareholder letter stated:

“Later this month, we’ll reintroduce the Peloton App with a tiered membership structure, offering diverse fitness content from strength and meditation to outdoor running. Our aim is to engage new customer segments, bolster Peloton’s brand awareness, and contribute to our revenue.”

During the Q&A session with investors, McCarthy elaborated on the tiers, aligning with our prior information. He mentioned that various app tiers would provide differing content and experiences based on subscription levels.

He clarified that the All-Access membership for hardware subscribers would retain its access to all content. They won’t switch to an à la carte model, except for a few exceptions.

Another major update is Peloton’s intention to “relaunch our brand.” McCarthy highlighted this as a means to educate potential members about Peloton’s holistic offerings beyond cycling classes and hardware.

“Ten years ago, we pioneered the connected fitness sector with the first Peloton Bike. While we’ve been known for home cycling, today’s Peloton experience has evolved vastly. In Q3, 57% of workouts were non-cycling, and 38% didn’t involve any hardware. We empower fitness journeys everywhere, and our brand relaunch aims to communicate this better.”

McCarthy reiterated in the Q&A that the relaunch seeks to bridge the gap between users’ evolving experiences and the brand’s narrow perception.

“Our brand relaunch and the revamped Peloton App are crucial growth initiatives. Historically, we face a subscriber decline in Q4. Despite the relaunch, this Q4 is expected to be challenging for growth.”

In the Q&A, McCarthy expanded on their marketing approach, targeting a younger audience to broaden their reach.

He emphasized that many Peloton members don’t use hardware, a fact they want to convey through new marketing. The updated app, with its pricing tiers, will be a focus of these efforts.

Further details on the Peloton App tiers and brand relaunch will be shared as May approaches.

Read also: