Dive Brief:
- Hoping to change the perception of its brand, Peloton on Tuesday unveiled a new brand identity along with an expanded range of tiered content memberships and a new content feature, according to a company press release.
- The fitness company released three new Peloton app content membership tier options, in addition to the brand’s two membership tiers for hardware owners. The three new tiers include: Peloton App Free with over 50 classes available at no cost; Peloton App One with access to thousands of classes across various modalities and up to three equipment-based cardio classes for $12.99 per month; Peloton App+ with unlimited access to Peloton’s library (not including Lanebreak or Scenic classes) and thousands of equipment-based cardio classes for $24 per month. Existing digital-only content customers will see price changes go into effect Dec. 5, 2023.
- Peloton’s new brand campaign showcases users of all ages and fitness levels utilizing the brand’s various offerings beyond its in-home bike hardware. The updated brand identity also includes a new content feature, Peloton Gym, in which “workouts are written-out, demoed in a supporting video, and designed to be done at the user's own pace.”
Dive Insight:
After teasing the relaunch just a few weeks ago, Peloton is aiming to expand its reputation beyond its hardware products, such as its bike, treadmill and rower machine.
"With this brand relaunch we're reflecting the vibrancy and fullness of everything Peloton has to offer to everyone. We're shifting perceptions from in-home to everywhere, fitness enthusiasts to people at all levels, exclusivity to inclusivity across all Peloton Members present and future," Leslie Berland, Peloton's chief marketing officer, said in a statement. "Our Instructors and Members live and breathe the true Peloton experience every day. We're excited to bring that energy and inspiration out into the world."
Peloton’s push to be known as “more than a bike company” is partly based on data about its existing customer base. According to data from the company’s latest earnings report, over half of workouts were not cycling-related and the most popular modality was strength training.
The company’s third-quarter earnings earlier this month showed total revenue dropped 22% year over year to $748.9 million. Missing its expectations, total gross margin was 36.1% while net loss narrowed from $757.1 million to $275.9 million.
“We’re primarily known as a bike company, but the behaviors of our members extend well beyond that into many different categories of exercise and a large percentage of folks use no hardware at all,” CEO Barry McCarthy said on a call with analysts at the time. “We haven’t done a very good job of communicating that to prospective members and we’re looking to improve upon that.”
