 By now you may have heard of Peloton's $2,000 Internet Connected Fitness Bike. It's a huge hit among home exercise fanatics. We're here at CES today looking at Peloton's newest product. It's a $4,000 Internet Connected treadmill called Peloton Tread. And who better to give me a demo of the new treadmill than CEO John Foley. John, thanks so much for being here with The Verge. We're very excited to show you. I think I'm excited to start running in front of a crowd full of people. 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 in the live class. We'll probably have 10 to 12 every day 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 rides classes at this point. The screen is huge. Yeah. So it's more than two times bigger than the Peloton bike screen. So let's just get you to go in to walk. Okay. I can throttle it back a little bit so you don't get out of breath. That's okay. These are pre-programmed for your own profile. So whatever you like to run at, sprint at, they're there. Of course, with Peloton, we have the full leaderboard of all the other people working out with you. You can get rid of the leaderboard if you prefer. You have your metrics across here. You can move the incline over there. Okay. So this is different from a tread? Exactly. So you'll see your incline here. Okay. What's the highest it can go? 15%. 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 see it still when you're off the treadmill? That's why we made the screen so big and the front-facing sound bar with the best audio technology in the category. So it's surround sound on a treadmill. Yes. This is wild. 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 totally... I've been using some old treadmills. Ours is totally wireless with ANT Plus technology or Bluetooth low energy. Whatever type of heart rate monitor you have, the tablet will pick it up and display it over here. Okay. So if someone is already paying for Peloton's indoor cycling classes... Yes. Is this included as part of that subscription? Yes. Okay. They pay nothing extra. They pay nothing extra, but that would mean that they've paid $2,000 for the bike and $4,000 for the treadmill. That's right. You have to buy the hardware, but from the membership perspective, your $39 per month covers your bike membership and your treadmill membership. 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? If you had your own treadmill in your basement, yesterday's technology obviously, but you could download our iPad app in a couple months once we launch all of the core classes, but you will be able to consume the classes from any hardware. I'm curious about the economics of this treadmill. You announced this just a few hours ago today, and so far the early reactions really seem to be in two different camps. People are either saying they're really, really excited about this, maybe because they've tried Peloton before, or they're saying $4,000 for a treadmill? No way. Why is this $4,000? So it's $4,000 because it basically costs us $4,000 to make it. They've got a 32-inch touchscreen, a front-facing sound bar with the best audio technology and the best slat technology in the treadmill itself. So we don't make almost any money on the treadmill, so we had to charge $4,000. But interestingly, as you think about the affordability, if you're a Peloton bike owner, we're bringing the Peloton treadmill to market at a $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 Peloton bike and a Peloton tread in your home, why would you need to go to the gym? You have better hardware at a better location with better instructors, a better community, better software. As you look at your product roadmap over the next couple of years, do you envision offering any type of low-priced hardware, lower-cost hardware just to get people onto the Peloton 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 of people around the world. You know, a $4,000 price point with a $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 fit and lead healthy and happy lives. So is it in your product roadmap to introduce lower-cost devices? I can't talk about our roadmap right now. Today we're excited about the Peloton tread. But again, we are going to innovate in all sorts of ways, as you'd expect from Peloton at this point.