Peloton increases its subscription fees for the first time

For the first time in the US and Canada, Peloton is raising subscription fees. It is balancing out those increases by reducing the prices on some hardware: the Bike, Bike+ and Tread.

The cost of the all-access plan is going to go up by $5 per month in the US and by $6 in Canada on June 1st, according to CNBC. Pricing for users elsewhere will not be changed for now. The cost of the plan will not change.

Prices on some products will be slashed from 6PM today. Shipping and setup will be included in the price of the bike. The price of Bike+ is being lowered by $500. The price of Tread is going to be cut by $200.

The company is hoping that lowering the upfront cost of its fitness equipment will lower the barrier to entry and help it find more customers.

Over the last year, the share price of Peloton has dropped due to a spike in demand for its products. Reports earlier this year suggested that Peloton had thousands of products sitting in warehouses and on cargo ships and that it was changing its production levels.

In February, Peloton replaced its CEO at the same time it cut 2,800 jobs. Rumors had it that Amazon, Apple and Nike were interested in buying the company.

The pricing structure is being changed in order to correct course. Reducing the cost of hardware could help. The company was willing to reduce the price of its devices. The set-up camera, which comes with a heart-rate monitor, is on sale for $295. The system would cost $485.