Zhitong Finance App learned that according to foreign media reports, fitness equipment manufacturer Peloton Interactive (PTON.US) quietly cancelled the unlimited free membership in less than a year after launching its fitness app due to failure to convert enough users into payments.

According to information, although new users of the Peloton app will no longer have this option, old users who signed up for an unlimited free membership before cancellation will still be able to use it. Currently, after a seven-day free trial, new users can only choose between the $12.99/month or $24/month plan.

The unlimited free membership was initially intended to attract customers who didn't want to spend too much on Peloton devices, and CEO Barry McCarthy (Barry McCarthy) hoped that free users would upgrade to paid memberships to get more types of courses. But he admitted last year that the company wasn't successful with paid conversions.

What next steps will be taken? Peloton Chief Financial Officer Elizabeth Coddington (Elizabeth Coddington) recently pointed out that the company still needs to find ways to better attract free users during the trial period to facilitate subsequent conversion to paid users.

She said, “The free user community is eating away at our funnel and the conversion rate from free trial to payment. What we're doing about this is shifting more traffic to the free trial tier to increase the app's conversion rate.”

Peloton closed down 7.32% on Monday. So far this year, the company's stock price has fallen 46%, and its market capitalization has shrunk by nearly $1 billion. SeekingAlpha's quantification system also issued a warning, saying Peloton is likely to perform poorly.