Butt-warmer activated… just in time for winter. Since last year, BMW has charged drivers in countries like the UK, South Korea, and Germany $18/month to unlock access to factory-installed heated seats and steering wheels. After considerable backlash, the seat-warming sub has been axed after just one winter.
Tough brake: BMW said it’ll instead focus on paid software services, like its $20/month driving-assist subscription. Seat-heat tech = hardware.
Rearview regret: In 2019 BMW said owners would be charged $80/year to use Apple CarPlay — but reversed course within months.
Subscription overdrive... As cars become increasingly connected to the internet (where the sub model reigns) automakers are going into Netflix mode. Ford’s hands-free driving tech is $75/month while GM’s is $25 (after ~$2.2K up front). Tesla drivers can pay $200/month for access to its full self-driving software. For $8/month, Toyota owners can remote-start their cars. It’s not just driving features either:
Carmakers have been testing rental-style subscriptions, where drivers pay a monthly fee and get a car (often with insurance and maintenance included).
Hyundai’s $700+/month EV sub can be canceled whenever. BMW tried out a $2K/month car-sub service in 2018, but ended it after about two years.
If you paywall it, they will pay… Despite some initial backlash-inciting failures, the auto industry sees software subscriptions (like: parking assist, hands-free driving) as a road worth traveling. GM is hoping to 10X its subs revenue to $25B by the end of the decade. Meanwhile, it’s phasing out support for CarPlay and Android Auto to lean into its own proprietary platform, potentially letting it charge for common mirroring services like GPS and collect more data.