Peloton drops digital subscription price, launches Fire TV and Apple Watch apps | Wow, that was quick! A digital sub drops to $12.99/month vs $19.99/month previously. $PTON bike owners must still pay $39/month, however. Price cutting this early? https://t.co/661EgnHLyE
— Diogenes (@WallStCynic) December 4, 2019
(2) Peloton only added 3,856 net digital subs last quarter. They probably didn’t want to see that metric decline so soon after going public. But makes you wonder about the software/class demand away from hardware sales. $PTON
— Diogenes (@WallStCynic) December 4, 2019
(3) Just a reminder that peak profit margins for fitness hardware and/or classes needs to be at the peak (rate-of-change) of the phenomenon, not five years out. Ask Nordic Track, Reebok Step, Zumba, CrossFit, Bowflex, Taebo and now, SoulCycle about that. $PTON
— Diogenes (@WallStCynic) December 4, 2019
For what it is worth, I use the digital subscription with an iPad and a cadence sensor. It’s 90+ percent the complete peleton experience.
— Glenn Tongue (@glenntongue) December 4, 2019
Naked exploitation of their locked-in owners of physical bikes, while staying competitive where they face easy competition in apps. Good business or way to annoy the most-loyal customers?
— James Mackintosh (@jmackin2) December 4, 2019
I mean if you want to try to construct a bear case on 1% of revenues, be my guest… $PTON
— Jon Arbuckle (@pokernermal) December 4, 2019
to be fair they seem far less focused upon the digital-only subs. the engagement metrics they presented during the roadshow do not indicate any diminshing demand from bike owners — quite the opposite in fact
— Philip Schlakman (@PSchlakman) December 4, 2019
1/
— Investor Gator 🐊 (@GatorInvestor) December 4, 2019
Any idea why $PTON stopped offering consumers the ability to finance prepaid, multi-year subscription fees? pic.twitter.com/YCRv0w5F37
2/
— Investor Gator 🐊 (@GatorInvestor) December 4, 2019
It seems that $PTON is using Affirm as its financing partner. The prospectus never mentions them by name though pic.twitter.com/AcCJRb4Gun
3/
— Investor Gator 🐊 (@GatorInvestor) December 4, 2019
nor the originating bank, Cross River Bank pic.twitter.com/tFgv9mayXQ
It seems very ’19 to let consumers finance three years of a prepaid subscription through a non-bank lender renting a bank charter from a bank no one has heard of. So why stop?
— Investor Gator 🐊 (@GatorInvestor) December 4, 2019
To be clear, when i said a “bank no one has heard of” I meant a bank-in-box stood up quickly with unsound lending practices. What could go wrong?https://t.co/zlk2K9E0lO
— Investor Gator 🐊 (@GatorInvestor) December 4, 2019