Indoor cycling giant Peloton has cut the price of its popular Bike, while launching two entirely new products for the lucrative at-home fitness market.

For the US market, Peloton is dropping the price of its flagship Bike from around US$2,245 to US$1,895, while in the UK the cost will be cut back to £1,750 (previously £1,995).

To coincide with the price drops, Peloton is introducing a new premium indoor cycle, The Bike+, which will be priced at US$2,495 in the US and £2,295 in the UK.

Separately, the company is also introducing a new, more affordable version of its Peloton Tread treadmill.

The new, lower-priced treadmill will adopt the old name Peloton Tread and will have a retail price of US$2,495 in the US and £2,295 in the UK.

It will be launched initially to the UK market on 26 December 26, followed by the US and Canada in early 2021 and Germany later in 2021.

The original Peloton Tread – available in the US only – will be renamed as Tread+ and priced at US$4,295.

As a result, Peloton is creating a two-tier system for both of its main product lines.

The move is seen as a response to the increased competition on the at-home market, which has seen a number of products – including indoor cycles – being launched in the past 24 months or so.

“When we launched Peloton, we knew we were onto something special," said John Foley, Peloton’s CEO and co-founder.

"Now, eight years later, we have a passionate global community of 2.6 million members and we feel like we’re just getting started, in terms of how we can impact the health and well-being of people worldwide through our platform, content and products.

"Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches, we’ll be able to offer access to Peloton’s best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home.”

Features in the new Peloton Bike+ include a 23.8-inch rotating HD touchscreen; a high-fidelity, four-speaker sound system; and the ability to pair the bike with an Apple Watch.

The new Peloton Tread will also feature a 23.8-inch HD touchscreen has been designed to be "smaller than most couches" in order for it to fit comfortably in most homes.