By Nathalie Voit

Peloton is increasing the price of its monthly subscription service while slashing the costs of its connected-fitness bikes and other hardware, the company said in a press release published on April 14.

Effective June 1, Peloton’s all-access membership for live and on-demand classes will increase from $39 to $44 a month for U.S. customers and $49 to $55 a month for Canadian customers. International membership pricing will remain unchanged, Peloton said. The app-only membership, which requires no equipment, will still retail for $12.99.

“We’re increasing the price of our all-access membership in North America after eight years without a price increase,” Peloton said. “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.”

However, the company announced lower prices for its exercise equipment set to go into effect on April 14 at 6 p.m. ET.

Peloton’s iconic stationary exercise bike will now retail for $1,445 instead of $1,745. The price changes are already visible on Peloton’s website. The Bike+ will drop to $1,995 from $2,495. The tread machine will also be discounted from $200 to $2,695.

The changes are part of Peloton’s strategy to lower “barriers to entry” and lure more customers towards using its interactive services amid falling stock shares.

“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 its statement.

Demand for Peloton’s at-home equipment has plunged from its peak during the COVID-19 pandemic’s early days. At the height of its popularity in December 2020, Peloton shares were selling for $162.72 a share. The exercise equipment company’s shares are now trading at $23.87 as of Thursday end of the day.

Peloton now hopes to make more of its revenue from recurring monthly subscriptions.

“I think there’s enormous opportunity for us to flex the business model and dramatically increase the [total addressable market] for new members by lowering the cost of entry and playing around with the relationship between the monthly recurring revenue and the upfront revenue,” Peloton’s CEO Barry McCarthy told CNBC’s Jim Cramer back in February.