"Subscription hell": Seat heating at BMW is just the beginning

In today's economic climate, an increasing number of businesses are seeking new ways to create money.

Jul 23, 2022 - 02:25
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"Subscription hell": Seat heating at BMW is just the beginning

Simultaneously, with the likelihood of phasing out combustion engines in the EU by 2035, a shift toward electromobility is on the horizon.

However, compared to a combustion engine vehicle, electric vehicles have fewer maintenance-intensive components. More and more automobile manufacturers are relying on subscription models to earn cash in the lucrative aftersales sector.

German premium brands such as Audi, BMW, and Mercedes are already ahead. Seat heating is already available from BMW, either as a subscription or permanently activated.

But this is only the beginning. Only 25% of car buyers prefer to pay monthly or annual fees to unlock vehicle capabilities, according to a Cox Automotive survey. However, the auto industry appears to be willing to give it a shot.

The majority of those polled would be willing to pay for security functions. More than 80% of research participants would pay up to $35 per month for the ability to utilize a lane departure warning system, for example. In the case of comfort functions, however, the willingness to pay is lower.

The release of the BMW Operating System 8.0 for vehicles such as the BMW iX electric car opens up entirely new possibilities for the Munich-based automaker.

The display network's hardware was created in collaboration with Qualcomm. BMW Car IT GmbH has developed a Linux distribution with the BMW OS 8.0 in collaboration with suppliers and starting in 2023, there will also be Android Automotive OS in selected BMW vehicles alongside their own OS, although without Google services.

Individual comfort and aid solutions can be marketed after the BMW OS 8.0 infotainment system is installed. BMW is exploring a new sales model for specific equipment with the latest models of the BMW X1 and BMW 2 Series Active Tourer in some regions.

According to the July 2022 pricing list, preparations for seat heating and steering wheel heating will be included as an extra in the premium package for both vehicle models constructed at the end of 2022.

For example, the 2-series Active Tourer comes with an optional "preparation for seat heating for driver/front passenger" (equipment code 9QT), which BMW describes as "activation in the BMW shop on the Internet, via the My BMW app, or in your car is conceivable later for a cost."

In addition to seat heating, the ConnectedDrive Store sells select assistance features such as adaptive cruise control. Many more "on-demand functions" will be added in the future.

The new BMW 7 Series and the electric car i7, for example, include a theater screen, which is a Fire TV Stick incorporated into the car, for the rear passengers. It requires paid data volume and an Amazon account to utilize.

However, DLCs should be employed by an increasing number of car manufacturers. Many car manufacturers would like to turn their vehicles into mobile game consoles.

Post by Bryan C.