The company significantly reduces prices to increase sales

As part of a comeback strategy to earn more recurring income, Peloton Interactive Inc. cuts the costs of its three key hardware products while increasing the cost of a membership.

“We aim to make our equipment more accessible to a wider range of people.” In a statement, the business said, “This is a strategic move to play on size and expand market share.”

Monthly subscription fee will increase by $5

For the first time in eight years, the business wants to raise its monthly membership charge to compensate for decreased hardware expenses. In the United States, the price rises to $44 per month from $39 per month, while in Canada, it climbs to $55 per month, but it remains unchanged overseas.

“Creating outstanding content and an engaging platform costs money, and this additional price will allow us to continue to serve our clients.” “One of the few levers we utilize to minimize barriers to access is hardware pricing vs subscription,” the business claimed.

Peloton’s stock originally rose 6% as a result of the new pricing approach, but the gains soon faded, and the stock slid 0.6 percent to $24.89 per share in New York trade on Thursday. Peloton has lost more than three-quarters of its value in a year.