BMW to offer subscriptions for extra features in cars

[Syt]

https://www.zdnet.com/article/bmw-explores-in-car-subscriptions-for-smart-connected-services/

BMW explores in-car subscriptions for smart, connected services

When we purchase a new car in today's market, it is often the case that you can choose to add a personal touch for an additional fee: seat warmers, a particular color, wheel rims, and more.

However, once the car leaves the showroom and is in a customer's hands, beyond repairs or, perhaps, a rare upgrade, there is little room for manufacturers to generate extra revenue from a sale.

With the arrival of mobile solutions, the Internet of Things (IoT), and in-car connectivity, however, the game changed -- and the vehicle industry is now able to capitalize on the same subscription-based models that others, such as streaming content providers, are already shifting to.

BMW appears to be keen to cash in on this change in consumer trends. This week, the automaker announced a set of new services in tandem with its upgraded vehicle operating system, OS version 7, including what could become subscription-based bolt-ons for owners.

While there are no concrete details on how subscriptions will work, purchases will be made via the BMW ConnectedDrive store.

"BMW already offers its customers digital services and additional vehicle functions in the form of digital after-sales, some of which are deeply embedded in the vehicle's software," BMW says. "In the US, BMW Drive Recorder is offered through a pilot program. In the near future, additional functions will be added that can access the vehicle's existing hardware and software, such as certain comfort functions or driver assistance systems."

The automaker says that at the point of manufacture, the hardware and software will be future-proof, allowing customers to pick out new features if they wish which are delivered to their cars via remote software upgrades.

As reported by Auto Blog, this could include heated seats, driver assistance solutions, or cruise control.

While this has the possibility of increasing flexibility and customization for customers -- such as only signing up for heated seating during the winter months -- paying for additional services after the initial outlay of a new vehicle might not be to everyone's taste.

This is not the first foray into subscription-based offerings that BMW has made, however. As noted by Engadget, in 2019, the automaker tried to impose an annual fee of $80 for vehicle owners to use Apple CarPlay, an initiative quickly scrapped due to customer complaints.

In a few years you'll have the option to watch 5 minutes of ads or paying a fee before starting your car, I guess.

I wonder what loot boxes and season passes for cars would look like. 

[Iormlund]

Spoilers, rims, custom paintjobs or keyfobs. Of course, they'd have to ban you from doing those elsewhere in the EULA first ... 

[Zanza]

My car has some subscription services, such as seeing which garages have free parking spots or seeing gas prices.

[Syt]

My car has some subscription services, such as seeing which garages have free parking spots or seeing gas prices.

That's information, though, that would also potentially be available via 3rd party app on a phone. Seat heating or cruise control not so much. 

[Sheilbh]

In a few years you'll have the option to watch 5 minutes of ads or paying a fee before starting your car, I guess.

I wonder what loot boxes and season passes for cars would look like. 

Or allow them to collect your data or pay?

[Tonitrus]

I don't mind so much the fully software-based IoT items (as the aforementioned parking-search assist and such), but for things that are already built into the vehicle's infrastructure, and doesn't require any outside support (this is why I might be inclined to give things such as the self-driving on a Tesla, for example) such as the heated seats?  Deal breaker.

[Zanza]

I know that there are cars where the engine power is determined bysoftware, not mechanics. Those cars can increase their power by so-calledchip tuning. That was of course never communicated by the carmakers...

[Zanza]

Or allow them to collect your data or pay?

What makes you think they don't already collect your data? Especially in non-GDPR markets...

[Sheilbh]

Fair. I know about it from an EU perspective - done some work on developing guidance round data and connected cars. Just strikes me there could be a lot more that you could get and do with it before long

[grumbler]

I know that there are cars where the engine power is determined bysoftware, not mechanics. Those cars can increase their power by so-calledchip tuning. That was of course never communicated by the carmakers...

...because cars with chip tuning require more maintenance and higher-octane fuel, which the customer would be very unhappy about.  Car manufacturers are conservative, not diabolical.

[viper37]

I know that there are cars where the engine power is determined bysoftware, not mechanics. Those cars can increase their power by so-calledchip tuning. That was of course never communicated by the carmakers...

Tesla had something like that, I think...  Ah, say you buy a used car promising AWD and 300hp but you instead get a FWD and 250hp because Tesla has resetted the software after the original owner sold it.

[Zanza]

I know that there are cars where the engine power is determined bysoftware, not mechanics. Those cars can increase their power by so-calledchip tuning. That was of course never communicated by the carmakers...

Tesla had something like that, I think...  Ah, say you buy a used car promising AWD and 300hp but you instead get a FWD and 250hp because Tesla has resetted the software after the original owner sold it.

I think they did that for their "autopilot" (which is just a drivers assistant with less safety features than their competitors). I think you should be able to buy and sell the hard- and software components of a car as a consumer. They claimed that "autopilot" was just a owner-bound licence or something like that.

[Iormlund]

I know that there are cars where the engine power is determined bysoftware, not mechanics. Those cars can increase their power by so-calledchip tuning. That was of course never communicated by the carmakers...

...because cars with chip tuning require more maintenance and higher-octane fuel, which the customer would be very unhappy about.  Car manufacturers are conservative, not diabolical.

It's also a way to streamline manufacturing. You can cover different price segments with a single engine. Most cars built in the last two decades work this way.