Peloton Out of Business?
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Anonymous
Do you know anything about how Peloton works? There is a monthly subscription fee. OP is speculating that the fee will increase so that the company can make more money. How much more per month would you (well not you, but a real Peloton owner) be willing to pay before you looked to switch to a different bike (there are many other options)? |
Anonymous
What about iFit is better than peloton? Genuine question. |
Anonymous
Subscription income doubled, it's just that marketing costs more than doubled-- they are spending 35% of income on marketing. They are making a big bet on future growth but the core business is very profitable. |
Anonymous
That's the point that people are missing. Forget the potential growth. They are not profitable, and even by the most optimistic standards, they will not be profitable until 2024. They need to charge more. But then it becomes increasingly unattractive to subscribe to peloton if the monthly rate is 100 dollars or more they could consider the bike being like a "platform" and let other companies use their technology to compete for customers. Fitness as a service FaaS |
Anonymous
Of course I am a real peloton owner. The idea that subscriptions would move to 75-100 month is so ludicrous, you look like biased. Also I see the OP has been edited, I’m assuming for clarity. |
Anonymous
There are no other options that truly replicate the peloton experience. None of the other bikes on the market have the same robust classes and instructors and leaderboard experience and community. And its fine to say that stuff doesn't matter, but to the people that have pelotons, it matters. I'm sitting here thinking about what price increase would make me get rid of my peloton and TBH its a high number. |
Anonymous
+1. But as a fellow owner, I'd actually pay that. And it would STILL be cheaper than almost any spin studio monthly pass by a substantial margin. |
Anonymous
| At some point, only so many people can afford a bike that expensive. And, those who want them have them. |
Anonymous
How much of that marketing is required for retention or to replace subscriber attrition? |
Anonymous
Well you need a lot of people who think like that and clearly that is what they are worried about. People scream when Netflix goes up by $1-2. If Peloton asks people to pay $10 more? They go under and they know it. They've reached penetration, now they need to innovate to stay afloat. |
Anonymous
At some point, sure people will give up their bike. But when the sink cost is $2K, that number is going to be pretty high. |
Anonymous
NP. I'd pay a lot more per month. |
Anonymous
So first you claim that no one will pay a higher price. Then someone says, 'oh well yeah I would pay a higher price' and you shift to, 'well not enough people will pay a higher price'. My financed peloton+ subscription costs $90 a month. That is on par with a basic gym and less than a more shi shi gym. It is a LOT less than a monthly pass at a spin studio. In my city a monthly membership would cost $188. A 20 class pack (I took 21 cycling peloton classes last month, not including any strength/barre/yoga) would cost $380. In Maryland that 20 pack at Soul Cycle (no monthly options available there!) would cost me $560. There are not a lot of affordable options out there for someone who is dedicated to cycling outside of a home gym experience. I feel fairly sure you do not spin regularly or have any real idea of the costs or experiences involved based on the arguments that you're making. Peloton, while expensive, is a CHEAP solution for someone who wants to do a lot of spin classes. |
Anonymous
| Not surprised. I never quite understood the attraction of pedaling to nowhere with someone on a screen yelling at me to pedal faster. And paying thousands of dollars for it. To each their own, I guess. I'll stick with jogging and walking. |
Anonymous
Exactly. People are acting like Peloton emerged from the ether in March 2020. It was around and growing for years before that, and SoulCycle was already on the decline in 2017 (according to this article: https://www.vox.com/the-goods/22195549/soulcycle-decline-reopening-bullying-bike-explained). Peloton had crazy growth for a year or so, and now there’s a correction. But there were lots of people who bought it well before the pandemic because they love the convenience and hate the gym, and those people will continue to exist even in a post-pandemic world. I’m one of them; I don’t even like the community, but I like spinning as exercise, like the instructors, and am thrilled never to have to go to a gym again. (For the people who are into the community, it’s a whole other level of commitment.) I’ve also started to take strength and stretching classes, so I’m getting increasing value from the monthly membership, and other members of my family use it occasionally, as well. To answer OP’s question, I’d certainly pay more than $40/month—I honestly think that’s a huge bargain and am surprised they haven’t increased it yet—and probably wouldn’t start complaining until it crossed $75/month. |