Why Peloton’s Biggest Problem Isn’t The Hardware

The turnaround plan for Peloton prioritizes the growth of its digital offerings over its high-end bike and treadmill sales as the company looks to boost its recurring revenue and appeal to a wider user base. Peloton CEO Barry McCarthy told analysts on the company’s fourth-quarter earnings call that he was rolling out a stratified pricing format that is aimed at adding users rather than selling hardware and cutting costs as it has been focused on for much of this year.