BMW has detailed a review of the digital systems that power its luxury vehicles, including a new map and navigation system, a revamped digital assistant, a “digital key” (first presented at Apple’s annual developer conference this week. passed) and Android Auto wireless. . But the most interesting thing that BMW shared about the changes is that the company is doing its best on microtransactions in the car.
Cars are more packed with computers and software than ever, making it possible for car manufacturers to add new features or patch issues on the go with over-the-air software updates. This has also presented these automakers with new ways to earn money. Take Tesla, which pioneered them and currently sells access to a variety of features after purchase. I even used to ship cars with battery packs that had a limited software range, and owners could pay a fee to unlock full capacity.
BMW now wants to take this to a much more specific level. The German automaker announced on Wednesday that all cars equipped with its new “Operating System 7” software will soon receive an update that makes it possible for the company to play with all sorts of functions in the car, such as access to heated seats and driver assistance features like automatic high beams or adaptive cruise control. And, unsurprisingly, the company plans to use this ability to earn money.
This would work in different ways, according to BMW. The simplest thing is that an owner can, at some point, pay to access certain functions that they did not initially buy with the car. However, this could also work in reverse. No longer feel the need for heated seats? Go ahead and turn off the feature. BMW didn’t go into too much detail on pricing or terms, but Roadshow He reports that the automaker plans to do so so that owners can “subscribe” to certain features for as little as three months.
It will probably cost BMW more up front to incorporate all of these features into every car, although the manufacturing process can be smoother with less differentiation. But BMW could recoup some of that money from the secondary owners of these cars. People who buy them from the used car market, or, more likely with BMW, pick them up on a three-year lease, will be able to configure the car to their liking in a way that was not possible with the company. previous vehicles
How this all unfolds will largely depend on what BMW charges for access to these various functions. The company’s history here is not necessarily encouraging, as it used to charge for access to CarPlay (first as a $ 300 option and then as a $ 80 fee per year).
But BMW is not alone when it comes to making in-car shopping a reliable source of income. Tesla has been doing it for years, offering features like autopilot and a “premium connectivity package” to buy after the owner delivers their car. Tesla has also helped illustrate how patchy the rollout of selling software services on a car can be, as some owners who bought their cars have said they were promised features that were disabled.
However, this idea will not only stop with BMW and Tesla, as cars are increasingly connected. Even Ford recently spoke about how the new 2021 F-150 will have over-the-air upgrades that will cover the car from “bumper to bumper,” which theoretically could allow the company to charge for access to certain features. Other automakers, like General Motors, have been playing around with in-car shopping as a revenue service.
Tech giants like Apple have created huge new sources of recurring revenue in recent years by leaning more toward selling software services, so it’s not surprising that the auto industry, which is increasingly behaving like the industry, of technology with each passing day, you are trying to find a way to get into the action as well.
