Tesla in talks for own music service, skipping likes of Apple Music & Spotify - report
Tesla is allegedly in talks with major record labels, hoping to offer its own streaming music service for owners of vehicles like the Model 3 and Model S -- apparently skipping default integration of options like Apple Music, Pandora, or Spotify.
The automaker is likely interested in offering multiple tiers, the most basic being a Pandora-style radio option, label sources explained to Recode. The service would come bundled with each car -- a practical option, since Tesla's products have large touchscreen dash interfaces and built-in internet connectivity.
Tesla has deflected inquiries. "We believe it's important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose," a spokesperson said. "Our goal is to simply achieve maximum happiness for our customers."
The Model S and X already offer some internet radio options, along with Bluetooth and USB connections, but the only integrated app-based service is Spotify, available only outside the U.S. Also missing is compatibility with Apple CarPlay or Android Auto, which would bridge with phone apps.
A bundled music service would get around some of these issues, while potentially offering Tesla an extra source of income if people have to pay for ad-free on-demand streaming. The company is also beginning to have the number of drivers needed to support a service -- it already has some 400,000 preorders for the Model 3, and has ambitions to compete directly against established brands like Ford and GM.
Apple is currently in its own negotiations with record labels, but with the aim of lowering the money it owes for content on Apple Music and iTunes. Higher payments initially helped lure labels and artists to Apple Music.
The automaker is likely interested in offering multiple tiers, the most basic being a Pandora-style radio option, label sources explained to Recode. The service would come bundled with each car -- a practical option, since Tesla's products have large touchscreen dash interfaces and built-in internet connectivity.
Tesla has deflected inquiries. "We believe it's important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose," a spokesperson said. "Our goal is to simply achieve maximum happiness for our customers."
The Model S and X already offer some internet radio options, along with Bluetooth and USB connections, but the only integrated app-based service is Spotify, available only outside the U.S. Also missing is compatibility with Apple CarPlay or Android Auto, which would bridge with phone apps.
A bundled music service would get around some of these issues, while potentially offering Tesla an extra source of income if people have to pay for ad-free on-demand streaming. The company is also beginning to have the number of drivers needed to support a service -- it already has some 400,000 preorders for the Model 3, and has ambitions to compete directly against established brands like Ford and GM.
Apple is currently in its own negotiations with record labels, but with the aim of lowering the money it owes for content on Apple Music and iTunes. Higher payments initially helped lure labels and artists to Apple Music.
Comments
I best the best method for enticing and keeping buyers is to simply have the entertainment options that buyers want. This also includes adding CarPlay and Android Autio to their systems.
You already get free (included) cellular service with TuneIn and Slacker for the life of the car. The car is always connected to Tesla anyway for logging, event notification and software updates. So the streaming audio is easy to throw in. The big screen Maps come from Google and navigation from Navigon, The XM receiver is there, but the subscription is extra. Frankly, I wouldn't use XM even if I had a subscription, because the audio quality is so poor.
There are way more than 2 dozen Tesla owners within a mile of my house.
Anyway, adding their own streaming service wouldn't help to convince me to buy one. As others have mentioned, CarPlay would be a bigger draw for me. My wife's new car has CarPlay and also came with 6 month (a year?) of Sirius/XM. I never ever use the satellite radio but constantly stream music or listen to stuff in my library (sadly, my library has a bunch of obnoxious "music for infants", which seems to help with our 1 year old). Not to mention the handiness of having Siri/Hey Siri while driving.
*years ago I read an article in Car and Driver that had a sidebar about how difficult it was to get a Prius (I think this was the same article that had another sidebar where they tested a Prius and a MB Diesel (don't remember which model) at highway speeds on a closed course and the Prius got terrible mileage overall and the MB got high mileage). At the time, according to the article, you could walk onto a Ford lot and drive out in a Escape Hybrid. Same for a Honda Civic Hybrid. But if you wanted a Prius there was something like a 2 or 3 month wait list AND you paid a premium. The author's conclusion was that the Escape and Civic hybrids looked exactly like their non-hybrid counterparts and thus there was no visual benefit to owning one over a Prius. Yes, it's speculation, but I haven't heard a better theory as to why the Prius had a wait list.
So while Tesla doing this might help people who only listen to music in their car, I'd like Tesla to maintain/introduce options to integrate with Apple Music, Spotify, Pandora, etc.