| Price elasticity of demand | −0.65 |
| Income elasticity of demand | 2.2 |
| Platform | Market share (%) |
|---|---|
| FitXR | 45% |
| Supernatural | 32% |
| Les Mills XR | 11% |
| Litesport | 5% |
| Holofit | 3% |
| Others | 4% |
Meta’s Supernatural fitness platform currently has over 3 million active global subscribers, who typically pay £15.99 a month to access high-intensity cardiovascular workouts. At this price, users can stream and experience hundreds of choreographed routines in photorealistic environments. The demand for these digital spaces grew rapidly as users sought home-based alternatives to traditional high-end boutique gym memberships. FitXR is a major competitor, offering a highly comparable catalog of box, HIIT, and dance workouts to its 4.2 million subscribers.
However, to access these immersive fitness programs, consumers must first purchase specialized hardware, such as a Meta Quest 3 headset (costing around £480) or a Pico 4 VR headset, alongside active silicone grips and sweat guards.
When Meta raised the monthly price of Supernatural’s premium subscription tier by £2.00 in 2024, industry surveys indicated that subscriber demand remained highly price inelastic. Only 5% of respondents indicated they would cancel their membership immediately.
Using examples from the information provided, explain what is meant by both 'substitutes' and 'complementary goods'.
