(Bloomberg) — Peloton Interactive Inc. has already lowered the cost of a strength-training device that goes on sale this week, a sign that getting more aggressive on prices will be a key part of its comeback plan.
The new Guide product, originally announced last November, goes on sale at $295.
That’s $200 less than the planned price when Peloton unveiled the device — part of a bid to decrease its reliance on exercise bikes and reverse a sales slowdown.
The New York-based company also said that the subscription required to access its content catalog for the product would cost $24 through 2022 instead of the normal $39.
That discount applies to new subscribers who buy a Guide and digital app users.
The price adjustments suggest that the company is focusing on generating subscription revenue rather than hardware-based margins, fitting a formula that new Chief Executive Officer Barry McCarthy outlined in an interview with Bloomberg Businessweek earlier this year.
The company has also started testing a subscription program for its bikes.
Peloton gained as much as 5.6% to $27.78 on Monday in New York, though the shares remain down about 23% this year.
The Guide, Peloton’s first strength-training device, features a camera with artificial intelligence that can analyze and provide feedback on workouts conducted in front of a TV set.
The voice-controlled device can determine which muscles users are working out and guide them through strength training classes with virtual instructors.
The device is available from Peloton’s website in the U.S., Canada, U.K.
and Australia, the company said.
(Updates with share price in fifth paragraph.)
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