How Peloton Bricked the Screens On Flywheel's Stationary Bikes (theverge.com) 111
DevNull127 writes: Let me get this straight. Peloton's main product is a stationary bicycle costing over $2,000 with a built-in touchscreen for streaming exercise classes. ("A front facing camera and microphone mean you can interact with friends and encourage one another while you ride," explained the Kickstarter campaign which helped launch the company in 2013, with 297 backers pledging $307,332.) Soon after they went public last summer, Bloomberg began calling them "the unprofitable fitness company whose stock has been skidding," adding "The company is working on a new treadmill that will cost less than the current $4,000 model, as well as a rowing machine."
Last March they were also sued for $150 million for using music in workout videos without proper licensing, according to the Verge — which notes that the company was then valued at $4 billion. And then this week Vice reported on what happened to one of their competitors.
"Flywheel offered both in-studio and in-home stationary bike classes similar to Peloton. Peloton sued Flywheel for technology theft, claiming Flywheel's in-home bikes were too similar to Peloton's. Flywheel settled out of court and, as part of that settlement, it's pointing people to Peloton who is promising to replace the $2,000 Flywheel bikes with refurbished Pelotons... When Peloton delivers these replacement bikes, it'll also haul away the old Flywheels."
The Verge reports that one Flywheel customer who'd been enjoying her bike since 2017 "received an email from Peloton, not Flywheel, informing her that her $1,999 bike would no longer function by the end of next month."
"It wasn't like Flywheel gave us any option if you decide not to take the Peloton," she says. "Basically it was like: take it or lose your money. They didn't even attempt to fix it with their loyal riders. It felt like a sting."
Last March they were also sued for $150 million for using music in workout videos without proper licensing, according to the Verge — which notes that the company was then valued at $4 billion. And then this week Vice reported on what happened to one of their competitors.
"Flywheel offered both in-studio and in-home stationary bike classes similar to Peloton. Peloton sued Flywheel for technology theft, claiming Flywheel's in-home bikes were too similar to Peloton's. Flywheel settled out of court and, as part of that settlement, it's pointing people to Peloton who is promising to replace the $2,000 Flywheel bikes with refurbished Pelotons... When Peloton delivers these replacement bikes, it'll also haul away the old Flywheels."
The Verge reports that one Flywheel customer who'd been enjoying her bike since 2017 "received an email from Peloton, not Flywheel, informing her that her $1,999 bike would no longer function by the end of next month."
"It wasn't like Flywheel gave us any option if you decide not to take the Peloton," she says. "Basically it was like: take it or lose your money. They didn't even attempt to fix it with their loyal riders. It felt like a sting."
Why is Sirius so like XM? (Score:2)
Basically, technology patent theft creates a product that people love, but is illegal. Sirius stole XM's patents, and was forced to merge. Pronto was so similar to Zoosk, they now look identical.
When somebody buys the bad product, they're required to take the original one and lose the patent-stealing one with no other recourse.
So Peloton took bikes that people loved... well, they're not evil they're just enforcing their rights.
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That's the bullshit version. In reality, China has been the top nation to file for international patents for many years now.
Re:The Chinese are right. Patents are BS. (Score:4, Informative)
That's the bullshit version. In reality, China has been the top nation to file for international patents for many years now.
Patent Grants for 2018, from World Intellectual Property Indicators [wikipedia.org] (the order for applications is different):
Patent grants for the top 10 offices, 2018
Rank Country Patent grants
1 China 432,147
2 U.S. 307,759
3 Japan 194,525
4 European Patent Office 127,603
5 South Korea 119,012
6 Russian Federation 35,774
7 Canada 23,499
8 Australia 17,065
9 Germany 16,367
10 India 13,908
Re: The Chinese are right. Patents are BS. (Score:2)
Yes, and the quality of those Chinese patents are also very low.
Just like the remdesivir patent they filed after Gilead sent them some to treat Coronavirus patients.
Re:Why is Sirius so like XM? (Score:5, Insightful)
Patent disputes are between the companies involved, not their customers. If I buy a doohickey, and Doohickey Inc. gets sued for patent infringement by Widget Corp, that doesn't invovle me. Doohickey Inc. might have to pay fines and a settlement to Widget Corp.
Peloton doesn't have the right to take Flywheel bikes from their legitimate owners. They *do* have the right to shut down ongoing infringing Flywheel services. So there's the real problem. Flywheel (and Peloton) customers got suckered into paying up front for a subscription service.
Subscription or one time purchase. Pick one. It should be illegal to do both.
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Peloton has the right brick the Flywheel equipment... they're being nice by paying for the cleanup and supplying a replacement.
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Are you sure? I think Peloton only has the right to make Flywheel pay up. It has no claim against Flywheel's customers.
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They are not "supplying a replacement" either. They are saying "You can't use your old hardware any more, and you're released from your old subscription [probably?] because the company is out of business. So you could walk away free right now. However, because you've already proven you're a sucker for this kind of thing, how a
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Patent disputes are between the companies involved, not their customers. If I buy a doohickey, and Doohickey Inc. gets sued for patent infringement by Widget Corp, that doesn't invovle me.
It depends on whether in using the product you also infringe the patent. Suing end users is a nasty practice, but according to the EFF it is happening:
https://www.eff.org/deeplinks/... [eff.org]
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Your conflating laws wirh morals. It might be legal what they are doing, but that doesn't make it right.
As the (dramatic) analogy goes, most nazis where just following the laws of their reich. Didn't make what they where doing anything other than ruthlessly evil however.
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They are within their legal rights to just brick all the Flywheel bikes with no replacement or recourse, leaving everybody who bought a Flywheel with a useless product. Instead, they are offering everybody a free equivalent replacement. Sounds like they're doing the right thing to me.
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You are making the assumption that all patents are good patents, reflecting genuine innovation which required an investment in research to advance technology and contribute to the collective good.
I can't find the exact patent Peloton claims to be infringed, but the vague reporting suggests it is for attaching a tablet to an exercise bicycle. Hardly a breakthrough in technology - and something I am sure a few individuals already 'invented' with a spool of duct tape to watch movies as they exercise.
Obvious an
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If Sirius stole XM patents then why did Sirius buy XM and not the other way around? I can't find anything about Sirus and XM having a patent dispute but there is a patent dispute between SirusXM and a European-based applied research organization. The reason the two providers merged is that there wasn't/isn't enough of a market for two companies providing this type of service. This is especially true now with streaming audio available via cell networks.
What exactly got bricked? (Score:5, Interesting)
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Begging for an open source design, yes it trivially easy to do what you suggest, but some people need that cool label. (or 'sick' for the millennials)
Re:What exactly got bricked? (Score:4, Interesting)
Re: What exactly got bricked? (Score:1)
Peloton runs generic android, it's just a full screen app. But you also need the cadence and power sensors fed into it.
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Re: What exactly got bricked? (Score:2)
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The Internet traces "sick" as slang for something good back to campus slang at least as far back as 1983. So I guess the OP is an older boomer shaking their fist at "the kids", mistaking 30-something millenials for late 50s early generation-X.
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Re: What exactly got bricked? (Score:2)
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Re: What exactly got bricked? (Score:2)
Similarly, you could buy a Toyota instead of a bmw, or a netbook instead of a $1500 gaming PC....maybe the extra price of the Peloton isnâ(TM)t worth it for you, and definitely thereâ(TM)s diminishing returns as the price gets to that level, but a peloton is a better bike than a Walmart special with a tv strapped on.
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Re: What exactly got bricked? (Score:2)
In terms of bike...quieter, heavier frame, more adjustable, smoother mechanics, less maintenance . TV is in better position than duct taping a cheap TV lol. Peloton screen shows your stats and Peloton classes are better and easier than YouTube LOL.
LOL do I really need to explain why a BMW is a better car than a Toyota? The fact that you say itâ(TM)s just a prestige thing suggests you are poor and a curmudgeon.
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I enjoy the hell out of riding my BMW hard, but less maintenance? Hahahah. Riiiight.
Re: What exactly got bricked? (Score:2)
Talking about the bike. A peloton uses magnetic resistance.
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Marginally, but from what I've read, it's got no where near the features one might expect of a standard exercise bike of the same price.
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You can't have an abandoned smart screen system. There's too much risk somebody on the admin side could turn it into a Internet hacker's botnet. It was internet connected, and with Flywhell falling out of business, Peloton felt obligated to clean it up.
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1. The Flywheel software
Nice repost from yesterday (Score:2)
Nice repost from yesterday, Slashdot.
While I'm no fan of patent trolls... (Score:4, Interesting)
Re:While I'm no fan of patent trolls... (Score:4, Insightful)
Moral of the story is don't buy products that rely on a subscription to keep working. These people are actually very lucky, in most cases you end up with a brick and no refund when the manufacturer goes bust or loses interest.
Re: While I'm no fan of patent trolls... (Score:2)
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These people are actually very lucky, in most cases you end up with a brick and no refund when the manufacturer goes bust or loses interest.
This^^^^
Peloton won the court case, proved infringement. Rather than have the infringer shut down and the bikes become mere exercise machines (rather than subscription-based lifestyle accessories), Peloton is offering their customers replacement bikes *at no cost* in order to retain their subscription service *at the same cost*. Sure, it helps Peloton shed a pile of refurbished machines, and it increases their subscription numbers, but look at it from the Flywheels owner's perspective. They can stop their s
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At least don't pay upfront for hardware that requires a locked-in subscription service.
Just begging to be genericized (Score:3)
Same thing needs to happen here. Since it's a stationary bike, t
Someone correct me if I'm wrong... but (Score:2)
I don't think the Peloton interface controls the resistance on the wheels. There a knob/lever that adjusts the resistance. On instructions, crank it up or down.
I do believe that rotational speed of wheel is measured. But that's just a hall effect sensor (or something similar). It doesn't measure actual power output. Some training cycles do this by having the wheel run generator and controlling the electrical resistance on the generator to calculate power (and integrate over time for energy).
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You're correct, which is part of why I looked at the price of a Pelaton and went: "The fuck?"
(It's not a lever, it's a knob that you have to reach down between your legs and turn to change the resistance.)
At that price I'd expect something automated.
Side effects of not owning anything (Score:4, Insightful)
I'm not an MBA, but my only assumption is that MBA schools have been exclusively teaching in their classes that products need to be structured so that (a) the customer owns nothing, (b) the customer has to pay you every month for life, and (c) when they stop paying or the company folds, any hardware the customer possesses is rendered unusable.
Almost all of the Second Dotcom Bubble companies are like this, including the cloud services that power them. Netflix and friends are 100% this way...stop paying and you lose access to content. And, I don't think people are realizing yet that they need to subscribe to many of these services to have ongoing access to content since they play the licensing shell game.
The Peloton example is just a highly visible version of this. I think Sonos did this also...intentionally destroying speakers when a customer traded up to a new one and creating a useless lump of e-waste. Flywheel owners now have an even bigger lump of reduced-functionality waste if they choose to keep it, or Peloton has to dump them.
There's tons of other examples...ink cartridges, Juicero, Keurig cups...it's like the MBAx got into a huddle room and said, "OK, how do we design this so we extract maximum revenue from the customer? Never mind what they say, customers are stupid and they'll buy whatever we offer them!"
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Everything is being structured to be an RMR model. Even life itself - the goal of every pharmaceutical vendor (inter alia) is to create medicines for "chronic" conditions that people will need to take for life.
Just to put a pin in this thread - Pharmas would turn a much, much higher profit from curing a serious chronic condition than they do from treating it. A cure could easily be priced at the total cost (not just the cost of drugs: all of the costs) of treating a condition for 5 10 years, would sell great, and would still save money for patients/insurance companies. Treatments always have competitors, sooner or later. A cure really doesn't have that problem - you cure several generations of people with the con
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If you don't like a product or it's terms then don't use it and go someplace else for your needs. This isn't rocket science. Companies don't exist to "owe" you things or do things as you think they should be done. Of course they seek to maximize r
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Sorry, you can't compete. Peloton has successfully convinced a judge that their patent for watching YouTube while riding a stationary bike is valid.
Maybe in 25 years?
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Peloton has successfully convinced a judge that their patent for watching YouTube while riding a stationary bike is valid.
So when will gyms across the country start taking down the TVs in their exercise rooms with stationary bikes?
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As soon as Peloton sues them.
Although, I can see a defence where the TV is not "interactive." The gyms will have to make sure clients don't have remote controls though.
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The problem is human nature, and it is not in the humans best interest. The majority when offered identical products A & B, where A is 3 grand with 50/mo and B is 5 grand will choose A. Even though in a little over 3 years B is the better buy. I can't tell you how many people I know buy strictly on "Can I afford the payment", never thinking circumstances may change where the payment they can afford today becomes the albatross tomorrow. Job loss, medical emergencies, heck a failed HVAC system or roof leak. And they have payments for every penny they make already. Companies prey on this human nature. And AI is just working to sucker in every last one of us by modeling your exact behavior.
While what you are saying is correct, you are overlooking a second-order effct. If just about everyone buys based on "can I afford the payment", that expansion of credit pushes up prices. The few who insist on only buying what they can afford thus lose buying power and thus have a decreased standard of living.
If the decreased buying power applies only to luxuries like an exercise bicycle, the frugal can live without. That doesn't work for necessities like shelter: when rental prices go up so do purchase
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They infringed on Pelotons patents and got caught. They tried to cheat. [slashdot.org] Had they developed their own bike technology without any of the patent issues then they would have been a Peloton competitor and I bet they'd peel off some of Peloton's customers.
You're delusional if you think there is no free market and it's all monopolies
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Flywheel was a competing company that did just what you suggest and now they've been sued into oblivion by Peloton using patents.
Seriously? Flywheel infringed on Peloton patents - they couldn't figure out a way to strap a TV to an exercise bike and provide pretty, motivating content for the TV without infringing on Peloton's patents?
Where is the Schwinn competitor, partnered with an exercise/fitness or outdoor-themed cable channel, to deliver a similar service at an affordable price - maybe even offering a no-subscription advertiser-sponsored alternative as well as a premium, no advertisement subscription plan?
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it's like the MBAx got into a huddle room and said, "OK, how do we design this so we extract maximum revenue from the customer? Never mind what they say, customers are stupid and they'll buy whatever we offer them!"
I don't recall that there was a meeting, but yes in general you want the entry/base price to be as low as possible. Cheap printers, expensive ink? Sure. Cheap razors, expensive blades? Yep. Also phone accessories, popcorn for movies and all other sorts of add-ons. Buy now, pay in 3-4 months what does that cost a business? Less than 1% of the sticker price, if they can close the deal now it's totally worth it. Any form of "microcredit" like a phone plan is super profitable. These were all things I learned be
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I don't think Netflix belongs into your list. It is an old fashioned subscription, like a newspaper. Cancel your newspaper subscription and of course you can't read the daily paper anymore at breakfast. So that's neither new or unexpected.
It's different if you have to buy hardware to use the subscription. But then again, that's how phone contracts often work. It's slightly bad if that hardware is subsidized, so you get ot of the contract with no major loss, but it's really bad if we're talking about overpri
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it's like the MBAx got into a huddle room and said, "OK, how do we design this so we extract maximum revenue from the customer?
What the hell do you imagine MBAs discussed previously when huddled ina room? How can we ease the burdens suffered by the sick or the poor? Do they discuss option to lower the cost of providing health care to every one?
No, they are focused on the question: "How do we design this so we extract maximum revenue from the customer?" - that is literally what their purpose is.
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I think Sonos did this also...intentionally destroying speakers when a customer traded up to a new one and creating a useless lump of e-waste.
No. What Sonos did was offer steep discounts on upgrades, if the owner agreed to brick their current speakers.
The upgrade was optional, if decline, the speakers continued to function as they always did.
The discount was optional, if declined the current speakers continued to work as they always did, and you paid full price for the new speakers.
The decision to destroy the old speakers was entirely up to the consumer - when it was complained about here, it was an e-recycler that complained they couldn't resell
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It's that kind of behavior from a company that will keep me from ever buying their product. There are plenty of suitable subs.
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I'm not an MBA, but .....it's like the MBAx got into a huddle room and said, "OK, how do we design this so we extract maximum revenue from the customer?
Three MBAs in our home... Profit maximization was one of the things they taught us in undergrad management. https://en.wikipedia.org/wiki/... [wikipedia.org]
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I'm not an MBA, but my only assumption is that MBA schools have been exclusively teaching in their classes that products need to be structured so that (a) the customer owns nothing, (b) the customer has to pay you every month for life, and ©Y when they stop paying or the company folds, any hardware the customer possesses is rendered unusable.
Almost all of the Second Dotcom Bubble companies are like this, including the cloud services that power them. Netflix and friends are 100% this way...stop paying and you lose access to content. And, I don't think people are realizing yet that they need to subscribe to many of these services to have ongoing access to content since they play the licensing shell game.
The Peloton example is just a highly visible version of this. I think Sonos did this also...intentionally destroying speakers when a customer traded up to a new one and creating a useless lump of e-waste. Flywheel owners now have an even bigger lump of reduced-functionality waste if they choose to keep it, or Peloton has to dump them.
There's tons of other examples...ink cartridges, Juicero, Keurig cups...it's like the MBAx got into a huddle room and said, "OK, how do we design this so we extract maximum revenue from the customer? Never mind what they say, customers are stupid and they'll buy whatever we offer them!"
You don't need to invoke MBAs to predict this model, and, wait for it, this model makes sense depending on content. I used to have a large collection of DVDs and CDs... until streaming came. It makes no sense for me to buy DVDs, or even buy a movie on Amazon or iTunes. There are caveats with this model as you said (it is possible until some remote conditions to lose access to a movie you bought.)
But as far as renting goes (be it a movie or a subscription), a Netflix, Hulu or Amazon Prime subscription is n
Just ahead of the curve... (Score:2, Insightful)
Flywheel's customers are just getting out ahead of the curve and going through what all the Peloton customers will experience when Peloton fails. It's a great fad but it's not a sustainable business and there's no future there. Anyone serious enough about cycling to value the service that Peloton is offering isn't interested in an overpriced exercise bike. If Peloton actually knew the market, they'd have gone the route of Zwift and TrainerRoad and the other services that interface with smart trainers and pr
Re:Just ahead of the curve... (Score:5, Funny)
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I wish I could mod that comment up without it deleting my comment and the sub thread, that was gold my man... gold. :D
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First you buy the $2000 bike, then you pay a subscription fee to use it. If you can get people to do this, I don't see what wouldn't be "sustainable" about this approach. You'd just have to adjust your pricing after you'd used the early adopters to recoup some of your costs.
As for how *ridiculous* the whole thing is, I agree with you. But being sensible is really optional when you're selling "sexy". Look at smart speakers. My physician sister recently told me how she and her university president husban
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That's the thing you're missing... this is a fad that will fade away. Exercise bikes don't sell because the reality is that a challenging indoor cycling workout is a miserable experience even for avid cyclists. Treadmills and elliptical machines are a more efficient exercise platform for indoor work; the only thing Peloton has going for it is the virtual ride experience and community aspect. Much like gym memberships, the majority of these subscriptions aren't going to be renewed after the requisite first y
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Anyone serious enough about cycling to value the service that Peloton is offering isn't interested in an overpriced exercise bike.
And this product isn't for serious cycling people anyway. It's precisely for everyone else, which is a much larger market.
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But therein lies the problem and their big mistake... regular people aren't going to consistently renew this service. Regular people aren't going to commit to riding indoors with regularity and the majority of their subscriptions aren't going to get renewed after the first year, just like gym memberships. So, once the fad dies out Peloton is sunk.
Unless they shift gears and appeal to cyclists, who aren't going to buy their ridiculously overpriced bike, they aren't going to find a steady customer base.
Must function independntly of Internet (Score:2)
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AFAIK no. It's just an exercise bike. Even the resistance control is manual. So all you lose is the screen and any information-gathering the thing does.
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This is a fundamental flaw in design IMHO. From the outset these bikes should be designed to at least operate without Internet.
The entire business model is to get people paying for a subscription. What you're asking for goes against everything this product was designed to accomplish.
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A $4000 treadmill? (Score:5, Insightful)
A $4000 treadmill? Wow. Who buys a $4000 treadmill? Who does that? Give me their number so I can sell them a $500 coffee cup.
And while we're on the subject of spending crazy money on shit, buying a $2000 stationary bike seems only a little less silly to me. Yes, yes, I know they're internet-connected and group-centric and blah blah blah blah, but still.
I have an inexpensive treadmill that I use from time to time;I just get on it and cue up a movie or some Youtube vids to watch while I mindlessly burn off extra calories. Will spending 10 times as much burn more calories? Will the calories respect my purchasing decisions?
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Look at it this way, the peer pressure that makes people buy nice stuff is also what motivates that personality type to get out an exercise, so in that sense it does add value.
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Not quite. Expensive bikes do add value, although after about 2 grand you start to get diminishing returns.
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After a 100+ km ride in a hilly area a lighter bike is worth the extra money, especially during the last hour. And it is not just the weight. Shifters shift faster and more precise, derailers run better, brake modulation is more exact and so on. Has nothing to do with the buddies. I am a loner yet my bikes used to be very expensive.
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A $4000 treadmill? Wow. Who buys a $4000 treadmill? Who does that?
People with a lot of money. People that will also pay a subscription service to hear some dude go "You can do this! Great job!" when they could just go outside and walk / jog / run for real.
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Decent treadmills are easy to find at garage salws.
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A $4000 treadmill? Wow. Who buys a $4000 treadmill? Who does that? Give me their number so I can sell them a $500 coffee cup.
They're already getting plenty of caffeine in their diet sodas; however, you might be able to sell them one of these... [buzzfeed.com]
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I have an inexpensive treadmill that I use from time to time; I just get on it and cue up a movie or some Youtube vids to watch while I mindlessly burn off extra calories. Will spending 10 times as much burn more calories? Will the calories respect my purchasing decisions?
If the curated videos and sense of community developed through the group experience of the Peloton service gets you to put yourself on the exercise bike more often, then maybe it's worth it.
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If the curated videos and sense of community developed through the group experience of the Peloton service gets you to put yourself on the exercise bike more often, then maybe it's worth it.
"If" and "maybe", the two words that when combined often result in the word "no".
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My wife is/was a spin and fitness instructor, so I am ever so slightly biased, but here you go.
Peleton has tremendous appeal to rich people that don’t want to go to a public gym for fitness. An average spin class is $15-20, and a new commercial spin bike starts at $1,000. So, $40/month and $2,000 is going to be cheaper for those people that go to a couple spin classes a week, and it gives you a lot of the same benefits of a spin class in terms of discipline, community, “fun”, and all tha
Bricked doesn't mean what you think it means. (Score:2)
Big fat hairy deal. (Score:2)
Overpriced IoT Trash burns and ripps-off customer. What a huge freakin surprise.
What I seriously don't understand: Who in gods name buys this junk? Ring, Nest, Alexa, Google Assistant, Sonos ... all pieces of overpriced IoT junk and privacy nightmares. Who would get something like that for cold hard money?
I fundamentally don't get it but I sure as hell get that this disaster isn't news at all to anyone paying attention.
My 2 eurocents.
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What I seriously don't understand: Who in gods name buys this junk? Ring, Nest, Alexa, Google Assistant, Sonos ... all pieces of overpriced IoT junk and privacy nightmares. Who would get something like that for cold hard money?
Millenials.
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Alexa is good for people who have some disposable income and a desire for instant gratification and a few seconds saved. It doesn't do anything that couldn't be done from a smartphone, but it can be done hands-free and in a shorter time. Why spend thirty seconds on the screen searching for the album you want to hear when you can ask for it in five? People are lazy.
freedom respecting software powered gaming bike (Score:1)
for $59/mo you can go to gym with way more then ju (Score:2)
for $59/mo you can go to gym with way more then just an bike.
Refund? (Score:2)
It seems that if you buy a product that can no longer perform it's function due to actions by the manufacturer, you should be able to return it and get a refund.
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Peloton is luxury, not mass market (Score:2)
I always love the Slashdot groupthink negativity, but I really don't understand all of the Peloton hate. If you don't want to buy and subscribe into the Peloton model, don't. What I don't understand is how many people hate on it because of its price without using it. The service provides terrific content. Sure, go ride a bike. Sure, rig up a homebrew solution to watch rides on a cheap Walmart stationary bike. It will not be as good. You will save money, but you will end up with a solution that you use less.
KQoTD : Klingon Quote of The Day ... (Score:2)
'Nuff said.