Through subscriptions, automakers imitate Netflix’s scripts

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In 2021, credit Routine monthly fees are uploaded on the card statement: Netflix For videos, Spotify For music, XBox Game Pass For games, Large force For fitness-etc., including meal packs, wine boxes and High-protein, low-carb grains. Financial Services Company UBS estimate The “subscription economy” driven by changes in purchasing habits caused by the pandemic will grow by 18% annually over the next four years, reaching US$1.5 trillion by 2025.

Now automakers want to join this party.

The idea is simple: we will sell you a car with a dash cam, or a car that can be driven hands-free, or a car that can use telematics data to guide you to become a better driver.But if you really want use For any new toys, you have to pay extra.CEDIT Tesla Popularize the notion that cars can be updated with software even after they leave the parking lot.

General Motors told investors this month that by 2030, subscription services may bring in additional revenues of US$20 billion to US$25 billion per year. The company said that 4.2 million customers have paid for its OnStar security services, including apps for $15 a month.Electric car start Rivian According to a recent financial document, the services supported by the software, including autonomous driving functions and infotainment, Internet connectivity and diagnostic subscriptions, can add an additional $15,500 over the life of each vehicle. BMW The plan to charge for functions such as heated seats through subscription fees last summer caused a sensation and consternation. In the United States, the automaker provides subscription services for on-board driving recorders and remote car starters.

Brian Irwin, head of Accenture’s automotive and mobility business, said that in the past few years, automotive companies have developed plans to “transform from an industry that sells products to an industry that sells services and products.” Today’s vehicles are equipped with multiple computer chips, cameras, and sensors-so this is an attractive opportunity to use detailed data to create and sell new products.

The electrification of the industry may make this idea more attractive. “Consumers see electric vehicles as a new technology that can enable new things,” said Alan Wexler, who is responsible for connected services and data insights at General Motors. This means that they are also willing to consider new ways to pay for their cars. In fact, if you start to think of the wheel as a “platform”, a smartphone-like device that requires additional purchases of apps to fully integrate into your lifestyle, then automakers will love it.

In 2019, BMW cancelled its plan to charge drivers an annual fee for using Apple CarPlay, as shown in the picture above.

Photo: BMW

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