Carmakers locking basic features behind paid subscription services

CARMAKERS ACROSS THE GLOBE ARE FACING SIGNIFICANT BACKLASH FROM CUSTOMERS OVER A GROWING TREND OF LOCKING HARDWARE FEATURES BEHIND PAYWALLS. SOME COMPANIES ARE NOW REVERSING COURSE AS DRIVERS VOICE THEIR FRUSTRATION OVER PAYING FOR FEATURES THEIR CARS ALREADY HAVE. 

IMAGINE BUYING A BRAND-NEW CAR, ONLY TO FIND OUT THAT CERTAIN FEATURES LIKE HEATED SEATS OR REMOTE START… FEATURES THAT ARE ALREADY BUILT INTO THE VEHICLE, ARE LOCKED BEHIND A PAYWALL. IT’S A MODEL THAT SEVERAL CAR COMPANIES, INCLUDING BMW, TESLA, AND MERCEDES-BENZ, INTRODUCED, HOPING TO TAP INTO NEW REVENUE STREAMS. BUT NOW, MANY OF THOSE CARMAKERS ARE FEELING THE HEAT FROM CUSTOMERS, AND THEY’RE STARTING TO RECONSIDER THEIR APPROACH.

CONSUMERS ARGUE THAT PAYING FOR A HARDWARE FEATURE THEY ALREADY OWN IS UNFAIR AND FEELS LIKE A HOSTAGE SCENARIO.

BMW TRIED LOCKING HEATED SEATS BEHIND A MONTHLY FEE IN SOME MARKETS, AND TESLA RESTRICTED ACCESS TO ADDITIONAL BATTERY CAPACITY. BUT AFTER CUSTOMER BACKLASH, THESE COMPANIES ARE NOW PULLING BACK ON THOSE PLANS.

AND IT’S NOT JUST PREMIUM BRANDS. MAZDA IS IN HOT WATER OVER A SIMILAR ISSUE. STARTING IN 2020, MAZDA INTRODUCED CONNECTED SERVICES, INCLUDING A REMOTE START FUNCTION AND REMOTE KEYLESS ENTRY… FEATURES THAT MANY CONSUMERS ASSOCIATE WITH BASIC MODERN CONVENIENCE. BUT THIS FEATURE IS NOW LOCKED BEHIND A PAID SUBSCRIPTION. THIS HAS REIGNITED CONTROVERSY, EVEN THOUGH THE SERVICE ISN’T NEW. 

MAZDA’S CONNECTED SERVICES SUBSCRIPTION, COSTING 120 DOLLARS A YEAR… REFLECTS A LARGER TREND IN THE AUTO INDUSTRY. AS ELECTRIC VEHICLES BECOME MORE COMMON, AUTOMAKERS ARE SEEKING WAYS TO REPLACE REVENUE LOST FROM TRADITIONAL REPAIRS. 

BUT EXPERTS SAY THERE’S A BETTER WAY TO DO IT… ENCOURAGING AUTOMAKERS TO EXPLORE SOFTWARE-BASED SUBSCRIPTIONS, LIKE ENHANCED NAVIGATION OR UNLIMITED EV CHARGING, THINGS THAT ACTUALLY ADD VALUE FOR THE DRIVER WITHOUT LOCKING UP HARDWARE THEY’VE ALREADY PAID FOR.

CARMAKERS ARE LIKELY TO CONTINUE EXPERIMENTING WITH DIFFERENT SUBSCRIPTION MODELS, BUT AS CONSUMER PUSHBACK GROWS, WE MIGHT SEE MORE BRANDS OPTING FOR SERVICES THAT DRIVERS ARE ACTUALLY WILLING TO PAY FOR… AND FEWER COMMON FEATURES HELD BEHIND A PAYWALL.

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FOR STRAIGHT ARROW NEWS… I’M JACK AYLMER.