Hi, this is Wayne again with a topic “The Peloton internet-connected treadmill first look”.
By now, you may have heard of peloton’s $ 2,000 internet-connected Fitness spike. It’S a huge kit among the home exercise fanatics we’re here at CES today, looking at Hilton’s newest product, it’s a four thousand dollar internet-connected treadmill called peloton, tread and who better? To give me a demo of the new tread belt and CEO John Foley, John thanks so much for being here with the verse, I’m very excited to show you. I I think I’m excited to start running in front of a crowd full of people all right. It makes running bearable. Okay, let’s go get a demo, so how many live classes can I expect to get per day so we’ll have a similar, full roster of classes.
The live class will probably have 10 to 12. Everyday live streaming from the New York studio and then true to peloton. We have the on-demand library we have hundreds of different styles of rides or now write classes. At this point, this screen is cute yeah.
So it’s more than 2 times bigger than the peloton bike screen. Let’S just get you to go into walk. Ok, I can throttle it back a little bit, so you don’t get out of breath. That’S ok! These are pre-programmed for your own profile.
So whatever you like to run at Sprint at there there, of course, with peloton, we have the full leaderboard of all the other people working out with you. You could get rid of the leaderboard. If you prefer, you have your metrics across here.
You could move the incline over there, ok, so this is how you, so this is different from my tread. Exactly so you’ll see your ensign here. Ok, what’s the highest, it can go 15 percent all right and then this increases speed.
That’S right! You’Ll see that halfway through the class you’re asked to get off the tread and go over to the mat and get your weights out and do the full-body. You know upper body part of the workout and are you able to turn the display so that you can? You can see it so when you’re off well? No, that’s why we made the screen so big and the front-facing soundbar, with the best audio technology and in the category. So it’s surround sound on a treadmill. Yes, some treadmills have heart rate sensors built in here.
Why did you opt not to do that? That feels like a very 1980s technology. To be honest, so ours is using some old treadmill. Ours is totally wireless with am technology or Bluetooth, Low Energy, whatever type of heartrate monitor you have, the tablet will pick it up and display it over here. So if someone is already paying for peloton’s indoor cycling classes, yes is this included as part of that subscription? Yes, okay, they say nothing extra, I mean nothing extra, but but that would mean that they paid $ 2,000 for the bike and $ 3,000 to protect them. You have to buy the hardware, but from the membership perspective, your $ 39 per month covers your bike, membership and your treadmill member. So what if someone was just using the iOS app and wanted to go running with the iOS running app? Could you do that as well, rather your own treadmill in your basement? Yes, two years to yesterday’s technology, obviously, but you could download our iPad app in a couple months once we launch all of the club for classes, but you will be able to consume the classes from any hardware. I’M curious about the economics. This said no, you announced this just a few hours ago today and so far the early reactions really seem to be in two different camps.
People re they’re, saying they’re really really excited about this, maybe because they’ve tried pellets on before or they’re singing $ 4,000 for a treadmill no way. Why is this worth a thousand dollars? So it’s four thousand dollars because it basically cost this board. That was nuts to make it’s.
They got a 32 inch touchscreen a front facing sound bar with the best audio technology and the best slide technology and the techno itself. So we don’t make almost any money on the treadmill, so we had to charge four thousand dollars but interesting way, as you think about the affordability for, if you’re a peloton bike owner we’re bringing the peloton treadmill to market at $ 110 a month price point – and You think about back to the scale within the household: that’s $ 55 per person, so when you think about what you’re paying for your gym membership, if you had a call, it’s on biking, a peloton tread in your home. Why would you need to go to the gym? You have better hardware at a better location for better instructors, a better community, better software. As you look at your product roadmap over the next couple of years, vision offering any type of low-priced hardware lower-cost Hardware just to get people onto the pillowtop platform, maybe a less expensive bike, sure sure. So as we think about what we’re trying to do. We’Re trying to bring fantastic, instructor-led group fitness to tens of millions people around the world. You know $ 4,000 price point with $ 110 per month price we’re also not making any money on the financing.
So we are doing everything we can to try to get great platforms into people’s homes so that they get it get fit and need healthy and happy lives. So is it in your product product right back to introduce Mehrotra costs devices? I can’t talk about it. I rode nap right now today, we’re excited about the peloton tread, but again we will we’re gon na innovate in all sorts of ways, as you’d expect the peloton at this point. .