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What's amazing is that they get people to pay _more_ than they would - or would even think of paying - for a streaming service like Netflix or Hulu, but their c

What's amazing is that they get people to pay _more_ than they would - or would even think of paying - for a streaming service like Netflix or Hulu, but their content creation costs are obviously a fraction of what it take to produce even one show on those platforms.

gamblor956 7y ago
What's really crazy is that the cost of 1 month of a Peloton subscription is less than the cost of 2 spinning classes in a real-world spin studio. If you spin enough, you actually do save money with a Peloton. $40/month + $2000/bike vs $30/class (in LA/NY/SF) results in a breakeven point of roughly 4 months if you spin every weekday, which many spin aficionados do.
- onlyrealcuzzo 7y ago
  What's really crazy to me is how expensive those spin classes are, how many people go to them, how little they pay the stay, and how all those companies still lose a ton of money!
  - justinator 7y ago
    How much do instructors get per class? $25?
    - scarface74 7y ago
      Yep.
- paxys 7y ago
  > 2 spinning classes in a real-world spin studio Located in the most expensive markets in the country.
  - runako 7y ago
    (Not a spin-class person.) I thought that was a high number, and I live in a lower-cost market (Atlanta). Looking at one-off/small chain spinning places that do not have outposts in New York State or California, I found single-class pricing to be in the $20-25 range. Given the cost of living difference between here and NYC, the $30 quoted for LA/NY/SF seems on target.
    - scarface74 7y ago
      Many gyms have free spin classes as part of their membership and many corporate gyms offer it for free. I taught classes part time all across metro Atlanta for years as a working hobby.
superfrank 7y ago
I think it makes sense. Not to get too "ad-speaky", but people aren't buying something like this to be entertained, they're buying it because it promises them a better life. Peloton aren't selling content, they're selling the idea of being in shape and healthy.
- xenospn 7y ago
  Yeah. Pretty much half the economy is too.
rossdavidh 7y ago
If they actually use it, it is probably doing them a lot more good than Netflix or Hulu.
- justinator 7y ago
  I mean, I just plop myself on a spin bike and watch Netflix. It's the only time I really allow myself to.
mbesto 7y ago
This is an odd comparison. content that results in entertainment != content that results in health benefits People regularly pay $50~$100/month for a gym membership so they're anchored against that.
- 013a 7y ago
  Those "odd comparisons" are the exact thing that make companies like Peloton successful. Another word for that is "disruption"; when you're comparing two markets that don't make sense to compare, and yet here we are with an S-1. Peloton is a cheap gym and an expensive Netflix, by reasonable comparisons. Damn is that a great business model.
timdorr 7y ago
It actually make a profit on their content production. Attending each class in person costs as much as a typical spin class. A back of the envelope estimate says they're probably pulling in $250k+ MRR from the studio alone.

gamblor956 7y ago

What's really crazy is that the cost of 1 month of a Peloton subscription is less than the cost of 2 spinning classes in a real-world spin studio. If you spin enough, you actually do save money with a Peloton. $40/month + $2000/bike vs $30/class (in LA/NY/SF) results in a breakeven point of roughly 4 months if you spin every weekday, which many spin aficionados do.

onlyrealcuzzo 7y ago
What's really crazy to me is how expensive those spin classes are, how many people go to them, how little they pay the stay, and how all those companies still lose a ton of money!
- justinator 7y ago
  How much do instructors get per class? $25?
  - scarface74 7y ago
    Yep.
paxys 7y ago
> 2 spinning classes in a real-world spin studio Located in the most expensive markets in the country.
- runako 7y ago
  (Not a spin-class person.) I thought that was a high number, and I live in a lower-cost market (Atlanta). Looking at one-off/small chain spinning places that do not have outposts in New York State or California, I found single-class pricing to be in the $20-25 range. Given the cost of living difference between here and NYC, the $30 quoted for LA/NY/SF seems on target.
  - scarface74 7y ago
    Many gyms have free spin classes as part of their membership and many corporate gyms offer it for free. I taught classes part time all across metro Atlanta for years as a working hobby.

superfrank 7y ago

I think it makes sense. Not to get too "ad-speaky", but people aren't buying something like this to be entertained, they're buying it because it promises them a better life. Peloton aren't selling content, they're selling the idea of being in shape and healthy.

xenospn 7y ago
Yeah. Pretty much half the economy is too.

rossdavidh 7y ago

If they actually use it, it is probably doing them a lot more good than Netflix or Hulu.

justinator 7y ago
I mean, I just plop myself on a spin bike and watch Netflix. It's the only time I really allow myself to.

mbesto 7y ago

This is an odd comparison. content that results in entertainment != content that results in health benefits People regularly pay $50~$100/month for a gym membership so they're anchored against that.

013a 7y ago
Those "odd comparisons" are the exact thing that make companies like Peloton successful. Another word for that is "disruption"; when you're comparing two markets that don't make sense to compare, and yet here we are with an S-1. Peloton is a cheap gym and an expensive Netflix, by reasonable comparisons. Damn is that a great business model.

timdorr 7y ago

It actually make a profit on their content production. Attending each class in person costs as much as a typical spin class. A back of the envelope estimate says they're probably pulling in $250k+ MRR from the studio alone.