[michaelwilson]

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]

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]

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]

How much do instructors get per class? $25?

[scarface74]

Yep.

[paxys]

> 2 spinning classes in a real-world spin studio

Located in the most expensive markets in the country.

[runako]

(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]

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]

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]

Yeah. Pretty much half the economy is too.

[mbesto]

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]

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]

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.

[rossdavidh]

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

[justinator]

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