"Peloton's primary source of revenue is its user memberships, allowing customers access to streaming live and on-demand exercise classes, and the premium exercise equipment itself. It has two types of memberships: Peloton membership, for those who own the company's equipment, and Digital membership, for those who want to only access the classes on an app. In 2014, the company launched its stationary bike product, including a 22-inch touchscreen tablet which allows for streaming as well as tracking of exercise goals and statistics, for around $2,000. In late 2018, it launched a treadmill priced at $3,995."

Discuss Peloton's price strategy. Explain how Peloton's price strategy uses two-part tariffs and second-degree price discrimination.