Hacker News Reader

Comment by michaelwilson | Hacker News Reader

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.

View on HN

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.

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!

How much do instructors get per class? $25?

Yep.

> 2 spinning classes in a real-world spin studio

Located in the most expensive markets in the country.

(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.

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.

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.

Yeah. Pretty much half the economy is too.

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.

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.

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.

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

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

Reply on news.ycombinator.com