Oh Jared alright Jared max on the peloton the latest fitness craze happening right in your living room peloton transforming indoor cycling by turning it into an interactive group class that you could participate in from the comfort of your own home all you need is a bike and a subscription now peloton is taking to retail to spread the spinning craze Jeremy right now is peloton CFO Lisa clinker and peloton CEO and co-founder John Foley good to see you both thank you so much for joining us thank you congratulations John what an idea what would a craze
what is driving this euphoria around peloton I think just the need for better access to fantastic workouts from home I think we are solving a problem that exists for busy couples like yourself where you don't have time in your work-life schedule with your kids to make it to the gym but you still want fantastic workouts high energy workouts effective workouts fun workouts so the peloton bright-white brings that experience to the convenience of your home but there's a lot of competition out there what's the you know the cell to go with peloton versus you know doing
any other thing like you've got biking crazes in classes happening more and more yeah I think there's a from our perspective there is no competition to be honest Michelle cycle yeah so you could go to SoulCycle class and get a fantastic workout you could go to fly will work workout or your local spin studio people want privacy I think they want convenience they want you know if you want to work out on your schedule at your location in your home you can either buy a bike of yesteryear where you stare at a wall and put
your headphones on and listen to some music or you can buy a peloton bike and we bring that entire experience the instructor-led group fitness the energy of other people so not just are we streaming the content into your home we're bringing the community into your home and it's a very immersive technology enabled platform so from our perspective there is no competition good for you so so Lisa let's talk about allocating money I mean you've been advertising a lot and that's part of the certainly the traction that you're getting people are figuring out what peloton is
how do you make those decisions in terms of how to spend money going forward as you become bigger and and it resonates with folks sure I think you know we view this as how you would manage your own business right so you take a look at all the opportunities are out there we're a very data-driven organization we have great intel on our customers and we use that Intel in order to drive very targeted marketing in new markets as well as reaching out to individual customers and so it really just comes down to how we can
optimize that spend to get us to the long-term goal that we see for the brand it is there it is there a reason to advertise less at this point you know you've got a lot of a big you know cash burn rate because you're allocating lots of money to marketing what's that what's the strategy well it's funny indoor fitness equipment for peloton is kind of a seasonal business so when you say should we pull back on marketing now I guess you're saying in the summertime and you're right after having spent so much already well no
we we just did a consult a study with Bain consulting and found out that the national awareness of peloton is is basically nil that's why we're excited to be on the show helping get the word out so we are yeah it's very early days of building our brand so we are - at least this point spending money smartly on television print we do a lot of digital on Facebook but yeah we believe strongly that the peloton experience is fantastic and people need to hear about it so the marketing is just getting the word out you
have to be time to a class that's happening live how does that work so yeah so we built the platform so that you if you want live we stream 12 hours of live television content a day by our studio here in Chelsea on 23rd Street to your point but we also have close to 4,000 rides on demand so if you want to get a ride at 2:30 in the morning you can go and go to the on-demand library and say this is my favorite instructor I want to do a 30-minute ride or a 45-minute ride
I want to do a metrics driven ride or a rhythm driven ride I want 80s hip hop or 90s rock or whatever style content you want so it's a little bit like the Netflix Fitness where you can select your class so live or on-demand whatever you prefer that is fabulous okay so it's a subscription and then the cost of the bike tell our audience about the pricing here what how much is the bike and what's the subscription that's right so the bike cost just under two thousand dollars so these are the any other bike you
might put in your basement or your living room it's a it's it's on par it's a good value yeah good quality too yeah it's a fantastic quality we built it so that it would last for 20 years in your house so there's a very quality platform and then to your point the business is $39 a month for unlimited access for you and your partner your spouse and your kids unlimited accounts in your house $39 for access to those live and on-demand classes so you could take as many as you want for 30 days you and
your spouse Pat yeah so it's a great three $9.95 to go public from a financing perspective to me the idea of going public from a marketing perspective and being back when your show Maria is very interesting to think about great Lisa John congratulations and we look forward to while watching the story developed thank you thank you Steve Lisa Klinger John Foley and of course as part of that advertising you're an advertiser on this network so we so we like that congratulations we'll see you soon thanks so much let's check
