If you look at Peloton’s financial statements, you’ll see that your assumptions are off. For one thing, music costs are significant (Peloton had to settle a $20

If you look at Peloton’s financial statements, you’ll see that your assumptions are off. For one thing, music costs are significant (Peloton had to settle a $200M law suit for not doing it right). In addition to the trainers, you have producers, graphic designers, artist spotlights, celebrity interviews, etc. Yes, some costs are fixed so with more subs you get higher profitability but that’s really different than charging for something that doesn’t have a variable cost.