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Peloton revamps its app to offer a $24/month tier with unlimited hardware-based classes and a free tier without live classes, alongside its $13/month tier

Bloomberg Mark Gurman

Context & Ripple Effects

Peloton had already demonstrated rapid subscriber growth in its 2019 S-1 filing, making recurring access a central part of its model. This app change refines that subscription strategy by separating basic discovery, live participation, and equipment-linked class access.

The new menu matters because it gives Peloton distinct entry points for users with different willingness to pay, rather than treating its app offering as a single subscription product.

First-order effects

  • Users can enter Peloton through a free tier, retain the $13 monthly option, or pay $24 per month for unlimited hardware-based classes; live classes are excluded from the free plan.
  • Peloton gains more explicit pricing and feature boundaries across its app audience, with hardware-linked content positioned as the premium access level.

Second-order effects

  • The $13 tier becomes a clearer middle option, creating a potential upgrade path from free access while also requiring Peloton to prevent the tiers from cannibalizing one another.
  • Digital fitness rivals face a more legible three-level comparison—free, standard subscription, and premium equipment-connected access—when setting their own content and live-class bundles.

Third-order effects

  • If this structure holds, connected-fitness companies may increasingly use free content for audience acquisition while reserving live, personalized, or equipment-integrated experiences for paid tiers.
  • The broader test is whether tiering can expand the app audience without weakening the value of premium subscriptions and the hardware ecosystem attached to them.

The trend: Connected-fitness platforms are moving toward freemium subscription ladders that monetize deeper engagement and hardware integration rather than relying on one all-purpose membership.

Discussion

  • @drmoneymatters @drmoneymatters on x
    Bye bye Peloton. Up charging when there are many more competitors out there. Time to use my apple fitness app more. $pton [image]
  • @markgurman Mark Gurman on x
    Peloton app goes free and pricier https://www.bloomberg.com/...