by now you may have heard of peloton's $2,000 internet-connected Fitness spike it's a huge kit among the home exercise fanatics we're here at CES today looking at Hilton's newest product it's a four thousand dollar internet-connected treadmill called peloton tread and who better to give me a demo of the new tread belt and CEO John Foley John thanks so much for being here with the verse I'm very excited to show you I I think I'm excited to start running in front of a crowd full of people all right 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 through the peloton we have the on-demand library we have hundreds of different styles of rides or now right classes at this point this screen is skewed yeah so it's more than 2 times bigger than the peloton bike screen that let's just get you to go into walk ok I can throttle it back a little bit so you don't get out of breath that's again these are pre-programmed for your own profile so whatever you like to run at sprint at through 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 could move the incline over there ok so this is how you so this is different from my tread exactly so you'll see your incline here ok 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 you can see it so when you're off well that's why we made the screen so big and the front-facing soundbar with the best audio technology and in the category so it surround sound on a treadmill yes 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 using some old treadmill ours is totally wireless with ant+ technology or Bluetooth Low Energy whatever type of heartrate monitor you have the tablet will pick it up and display it over here so if someone is already paying for peloton's indoor cycling classes yes is this included as part of that subscription yes okay they say nothing extra maybe nothing extra but but that would mean that they paid $2,000 for the bike and/or thousand dollars to return you you have to buy the hardware but from the membership perspective you're thirty nine dollars per month covers your bike membership and your treadmill member so what if someone was just using the iOS app and wanted to go running with the iOS running app did you do that as well you ready your own treadmill in your basement yes two years to yesterday's technology obviously but you could download our iPad app in a couple months once we launch all of the club core classes where you will be able to consume the classes from any hardware I'm curious about the economics said no you announced this just a few hours ago today and so far the early reactions really seem to be in two different camps people re they're saying they're really really excited about this maybe because they've tried pellets on before or they're singing $4,000 for a treadmill no way why is this four thousand dollars so it's four thousand dollars because it basically cost this board that was nuts to make it's they got a 32 inch touchscreen a front-facing sound bar with the best audio technology and the best slide technology and the dead know itself so we don't make almost any money on the treadmill so we had to charge four thousand dollars but interesting way as you think about the affordability for if you're a peloton bike owner we're bringing the peloton treadmill to mark it at a $110 a month price point and you think about back to the scale within the household that's fifty five dollars per person so when you think about what you're paying for your gym membership if you had at all it's on biking a peloton tread in your home why would you need to go to the gym you have better hardware at a better location for better instructors a better community better software as you look at your product roadmap over the next couple of years vision offering any type of low-priced hardware lower-cost Hardware just to get people on to 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 people around the world you know $4,000 price point with $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 it get fit and lead healthy and happy lives so is it in your product product or back to introduce the hooker costs devices I can't talk about it all right up right now today we're excited about the pellets on shred but again we will we're going to innovate in all sorts of ways as you'd expect the development of this point you