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I don't see it as rent seeking since there are production costs to these classes but $40 is way too high. $2 is more like it.

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2$/month would pay for nothing essentially. You get unlimited classes for the 40$/month, which is cheaper than going to most fitness classes more than a few times.

Even in the middle of my small town, drop in classes at the gym at 8$ each, on top of your monthly membership.

Fwiw I dont own a Peloton, I prefer running, I just dont think its nearly as bad of a deal as people make it out to be

I'm not a user either but $40 at their current subscriber number comes in at a quarter billion dollars of revenue. How come everything else takes advantage of economies of scale but not virtual goods? $2 a month at scale would be great. Even greater if they allowed you to log into any of a number of fitness video services.

From Peloton’s point of view (bottom line yadda yadda), you’d have to think that dropping to this price would 20X their subscriber count. Which is not to say that $40 is the correct profit maxima, but it almost certainly isn’t $2.

Just because something can be offered cheaper at scale, doesn’t mean it should or needs to be.

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