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Automakers Mimic Netflix’s Playbook to make billion$

Jim K

Skate Alert
May 5, 2019
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The subscription model for vehicle usership kinda fizzled, but automakers are planning to drive revenues with software services.

"General Motors told investors this month that subscription services could bring in an additional $20 billion to $25 billion annually by 2030."
  • 4.2 million already pay $15 per month for OnStar
  • GM wants consumers to start thinking about cars as a 'platform' for software enabled services that fit your lifestyle
  • Avg. vehicle "on the road for 12 years provides opportunity to cement customers to a brand" (think iPhone and Apple products)
  • Rivian projects $15,550 per vehicle in additional software related services
  • BMW plans to charge subscription fees for heated seats (I don't think that will fly)
Good piece and a quick read here at Wired Magazine.
 
Upgrade your vehicle with the touch of a button and a monthly subscription. Interesting concept and it makes sense for apps like Onstar but paying for actual performance and/or convenience upgrades - I don't see it playing out the way the manufacturers think it will, at least not in the near future.
 
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Upgrade your vehicle with the touch of a button and a monthly subscription. Interesting concept and it makes sense for apps like Onstar but paying for actual performance and/or convenience upgrades - I don't see it playing out the way the manufacturers think it will, at least not in the near future.

And I wonder if manufacturers will allow third-party apps on their 'platforms'. That could get interesting.
 
That would open up a ton of liability. If a car crashes, or gets stolen, was it because of the 3rd party app?

Yeah good point. Makes sense that some apps would only be accessible when the vehicle is in 'self-drive' mode. But you know they'll figure out the liability issues if they can monetize the platform. There are 1.5 billion vehicles on the road globally. They all have to be replaced at some point, so the idea of a car as a platform is interesting. Access to 1.5 billion drivers and their passengers is money in the bank. I'm betting there are some real smart people on this already.
 
Ran across this today...

In recent years the automotive industry has observed a trend where the in-vehicle software seems to be of greater importance than the car performance itself.

The shift in customer preferences results in a completely new approach to building vehicles.

This new automotive era is now being referred to as software-defined vehicles. This e-Book shows you the 4 core pillars of building a software-defined vehicle and highlights the most important aspects of each:

Automotive Cloud Platforms
Seamless Connectivity
Virtual World
Over the Air Upgrades


I may get in a bit of trouble for this - gonna directly link to the PDF. However, this is intended to be a lead capture source for the download by Grape Up. So if you would like your info to be added to the list, you can do here.

OR - bypass the lead capture HERE.
 
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