The Aviron Impact Series (an odd name for a low-impact exercise machine) rower is $2149, while a C2 Model D is $900.
The Model D has been in gyms for decades. Literally, your local gym may have one that's decades old and still in perfect shape. Olympic rowers train on them. A significant portion of people who row already have one and aren't going to need a replacement any time soon.
The video on Aviron's website focuses heavily on the software, but the rower itself does not look like it should cost twice what a C2 does. The belt is plastic. The rail's finish looks like it will wear off. The rear support looks less sturdy and stable than that of a C2. The ramrod straight handle looks blister-inducing. The whole thing looks very plastic. Note that I'm not saying the rower isn't worth the money. The build quality and ergonomics might be excellent. It just doesn't look like a rower that's worth 2.39 C2's.
The display is a big improvement over anything C2 sells, but $1249 can buy a pretty nice display and a basic computer to run it, or a big ol' tablet and a mount.
Peloton probably had an easier time entering the exercise bike market because there wasn't any one competitor as dominant as C2 is. However, they do now offer an app that lets people use their software and classes without buying a Peloton bike.
The question for Aviron is, can they sell their rower without their software being exclusive to it? They would undoubtedly find more users if they supported other rowers, C2 specifically, but would the extra monthly memberships bring in more than sales from their rower if the software remained exclusive to it?