Peloton said it would lower the price of the stationary bike by 25% to $1,985, or $49 per month if the purchased is financed through the company. With the $39 streaming fee, the all-in price falls to $88 per month and comes into effect on Wednesday, the company said.
The group also said it will introduce Peloton Bike+, a new connected fitness product that compliments the group's indoor cycling class, as well as Peloton Tread+, a newer version of the company's treadmill.
"When we launched Peloton, we knew we were onto something special. Now, eight years later, we have a passionate global community of 2.6 million Members, and we feel like we're just getting started, in terms of how we can impact the health and well-being of people worldwide through our platform, content and products," said CEO John Foley. "Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches, we'll be able to offer access to Peloton's best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home."
Peloton shares were marked 2% higher in early trading Tuesday to indicate an opening bell price of $82.16 each, a move that extends the stock's year-to-date gain to around 186% and values the New York based group at around $23.5 billion.