Peloton Interactive Inc (NASDAQ:PTON) shares are trading lower Thursday after the company announced pricing changes for some of its products and services.
Peloton said it plans to lower the prices of its Bike and Tread products in all markets later today.
"We want more people to be able to afford our hardware. This is a strategic decision to play for scale and increase market share," Peloton said in a blog post.
The connected fitness company also intends to increase the prices of its all-access membership in North America following eight years without a price increase. Peloton said its membership has been significantly improved over the years and offers much more value to customers than it did at its inception.
"There's a cost to creating exceptional content and an engaging platform, and this price increase will help us continue to deliver for our Members," Peloton said.
The membership price hike will take place on June 1. The all-access membership fee will be raised from $39 to $44 in the U.S. and from $49 to $55 in Canada. International membership pricing will remain unchanged.
From Last Week: Peloton Slashes Strength-Training Product Price By 40%: Reuters
PTON 52-Week Range: $20.11 - $129.70
According to data from Benzinga Pro, the stock was down 3.01% at $24.29 at time of publication.
Photo: courtesy of Peloton.
