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.