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Peloton isn\u2019t keen on the fact people mostly think of it as that<\/em> bike company, which is why CEO Barry McCarthy says the company will \u201crelaunch its brand\u201d<\/a> later this month so that more people are aware that it does other<\/em> things, too. Part of that is relaunching the Peloton app with a new tiered subscription structure.<\/p>\n<\/div>\n There\u2019s no information on the pricing just yet, but on today\u2019s Q3 2023 earnings call, CFO Liz Coddington said the \u201capp tiers will have different amounts of content variances\u201d depending on the price. Only users who have bought Peloton hardware and pay for All-Access membership will get everything Peloton has to offer. <\/p>\n<\/div>\n McCarthy also noted on the call that unaided awareness for the Row<\/a> is at 4 percent, while the Guide<\/a>, its camera-based strength training product, sits at a measly 1 percent. The app is the most promising of Peloton\u2019s non-bike products at 5 percent. Coddington also noted that the Row sales are \u201cheavily skewed\u201d toward existing Peloton users. <\/p>\n<\/div>\n Looking at the numbers, it\u2019s not surprising that Peloton is putting its bets on the app and growing subscriptions to reverse Peloton\u2019s fortunes. Lululemon announced it was taking a similar tack for Mirror in its most recent earnings, saying it would release a digital-only subscription<\/a> sometime this summer.<\/p>\n<\/div>\n It makes sense, as a $13 monthly fee for access to Peloton\u2019s classes \u2014 the company\u2019s real cash cow \u2014 is more attractive to the average person than a $3,200 rower. Unsurprisingly, McCarthy said that revenue from subscriptions exceeded hardware by 30 million last quarter and 100 million this quarter.<\/p>\n<\/div>\n \u201cWe faced many challenges in the past year, almost in every aspect of the business \u2014 except for content. Content is the golden goose,\u201d McCarthy said on the call. \u201cIs the bike a great experience from a hardware perspective and better than things that came before? Absolutely, but the magic and the glue that binds the community with almost religious fervor amongst our members is the content and the instructors.\u201d <\/p>\n<\/div>\n \u201cContent is the golden goose.\u201d<\/p>\n<\/div>\n<\/div>\n The company also said it saw strong growth in its bike leasing program<\/a> and its decision to sell refurbished bikes at a discount. Other efforts, such as its partnership with Hilton and Amazon<\/a>, have also done well.<\/p>\n<\/div>\n That said, Peloton still has some challenges to overcome, even as it shows some signs that it’s moving on from its dismal 2022<\/a>. It reported a net loss of $275.9 million, which is its ninth straight quarter of losses and wider than expected. The company also announced today that it\u2019s decided to settle a patent dispute with Dish<\/a> for $75 million. The settlement adds financial pressure on Peloton going forward, though it means that Peloton avoids an import ban from the International Trade Commission. Unsurprisingly, Peloton\u2019s stock price sank about 14 percent this morning<\/a>.<\/p>\n<\/div>\n