Tesla in talks for own music service, skipping likes of Apple Music & Spotify - report

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in iPod + iTunes + AppleTV
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.
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Comments

  • Reply 1 of 35
    SoliSoli Posts: 6,137member
    This seems like a dumb move. There's no way they'll ever get enough subscribers to warrant the cost of getting on-board with labels and artists or building a music service that could revival Spotify, Apple Music, or others.

    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.
    edited June 2017 robin huberretrogustovukasikamacxpressstompytycho_macuserdouglas baileyjeffharrisrepressthisapplesauce007
  • Reply 2 of 35
    SpamSandwichSpamSandwich Posts: 28,369member
    A bizarre, off-target decision from Musk/Tesla. What'll they do next... open a chain of Tesla-only car washes? Maybe Amber Heard is affecting Musk's ability to think clearly.
    edited June 2017 robin huberstompytycho_macuserjbdragonwatto_cobrahmurchisonanton zuykovmrboba1
  • Reply 3 of 35
    yoyo2222yoyo2222 Posts: 104member
    As a Tesla owner I'm not sure of the point of this. As for adding CarPlay or Android Auto I have no trouble streaming music, podcasts or audiobooks through the audio system via bluetooth (and is controllable via the Tesla's audio controls). The big advantage of CarPlay is getting maps and directions in cars that wouldn't otherwise have GPS. The Tesla guidance system is a combo of Garmin and Google Maps which is more than adequate.
    SpamSandwichvukasikastompytycho_macuserdouglas baileyrepressthisanton zuykov
  • Reply 4 of 35
    Soli said:
    This seems like a dumb move. There's no way they'll ever get enough subscribers to warrant the cost of getting on-board with labels and artists or building a music service that could revive Spotify, Apple Music, or others.

    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.
    If it's just a free/cheap perk for being a Tesla owner, though, it might serve its purpose. Yes, streaming deals aren't cheap, but neither are Teslas or their upgrade packages.
    repressthis
  • Reply 5 of 35
    schlackschlack Posts: 667member
    would just prefer car play from a car owner perspective, but am curious to see how tesla seeks to innovate in this space. my guess is that they are 1) just trying to control their ecosystem and create a good user experience or 2) generating legitimate pressure on spotify/et al so they allow them to integrate with their service in the USA for a reasonable price.
    douglas bailey
  • Reply 6 of 35
    SpamSandwichSpamSandwich Posts: 28,369member
    Soli said:
    This seems like a dumb move. There's no way they'll ever get enough subscribers to warrant the cost of getting on-board with labels and artists or building a music service that could revive Spotify, Apple Music, or others.

    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.
    If it's just a free/cheap perk for being a Tesla owner, though, it might serve its purpose. Yes, streaming deals aren't cheap, but neither are Teslas or their upgrade packages.
    It couldn't possibly be free. They're already not making a profit. They may never make a profit.
    jbdragon
  • Reply 7 of 35
    bergg01bergg01 Posts: 1member
    As a Tesla owner just need to clarify that Tesla already has integrated Slacker and TuneIn. Both are integrated apps that offer searching from within Tesla voice controls. 
    repressthisiqatedo
  • Reply 8 of 35
    Soli said:
    This seems like a dumb move. There's no way they'll ever get enough subscribers to warrant the cost of getting on-board with labels and artists or building a music service that could revive Spotify, Apple Music, or others.

    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.
    If it's just a free/cheap perk for being a Tesla owner, though, it might serve its purpose. Yes, streaming deals aren't cheap, but neither are Teslas or their upgrade packages.
    It couldn't possibly be free. They're already not making a profit. They may never make a profit.
    This is technically incorrect.  Tesla's made a profit at least one quarter, if I recall correctly.  Your point isn't lost on me though; there were government subsidies involved (but hey, all automakers have the same access to those subsidies, so I still think my point is valid).
    edited June 2017
  • Reply 9 of 35
    dysamoriadysamoria Posts: 1,549member
    What? Why? This is as dumb as Apple making a car. 
    jeffharrisjbdragonanton zuykov
  • Reply 10 of 35
    spice-boyspice-boy Posts: 462member
    Wow, the 2 dozen Telsa owners get an awesome music service, so jealous........
  • Reply 11 of 35
    macxpressmacxpress Posts: 3,858member
    Why? I don't get this at all. Why not focus on making your cars not a POS instead of worrying about music. 
    anantksundaramrepressthispscooter63jbdragonanton zuykov
  • Reply 12 of 35
    fallenjtfallenjt Posts: 3,661member
    Please Elon, don't do this. Instead, offer the Road Side Assistant packages that will provide the owners with road service like battery recharge/replacement or a Tesla loaner within a few hours of breakdown/stall so the owner won't get stuck on the road.
    repressthisjbdragonanton zuykovpalomine
  • Reply 13 of 35
    fallenjtfallenjt Posts: 3,661member
    Soli said:
    This seems like a dumb move. There's no way they'll ever get enough subscribers to warrant the cost of getting on-board with labels and artists or building a music service that could revive Spotify, Apple Music, or others.

    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.
    If it's just a free/cheap perk for being a Tesla owner, though, it might serve its purpose. Yes, streaming deals aren't cheap, but neither are Teslas or their upgrade packages.
    Like BMW gives free 1-year XM subscription? They should include it until Warranty runs out. Why doesn't Tesla just give owners the same thing as long as they still own the car.
  • Reply 14 of 35
    lkrupplkrupp Posts: 5,628member
    Looks like walled gardens are in vogue these days. Another Apple pioneered paradigm change.
    watto_cobra
  • Reply 15 of 35
    dcgoodcgoo Posts: 186member
    fallenjt said:
    If it's just a free/cheap perk for being a Tesla owner, though, it might serve its purpose. Yes, streaming deals aren't cheap, but neither are Teslas or their upgrade packages.
    Like BMW gives free 1-year XM subscription? They should include it until Warranty runs out. Why doesn't Tesla just give owners the same thing as long as they still own the car.

    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. 
    pscooter63
  • Reply 16 of 35
    dcgoodcgoo Posts: 186member

    spice-boy said:
    Wow, the 2 dozen Telsa owners get an awesome music service, so jealous........
    There are way more than 2 dozen Tesla owners within a mile of my house.
    Solidouglas baileyrepressthis
  • Reply 17 of 35
    I don't understand the allure of Tesla vehicles.  I don't particularly care for the looks of any of them.  Yesterday I saw a Model X parked behind the building where I work.  I took a minute to really get a good look and still, it doesnt' do anything for me.  The touchscreen looks much too big to me, but that's from the outside looking in.  Maybe if I drove one my view would be different.  While they get good range for an electric vehicle it still isn't very high.  I kinda feel like the interest for Tesla's is similar to the interest in a Prius: people tend to get them because they look different.*

    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.
    anantksundaramwatto_cobra
  • Reply 18 of 35
    dcgoo said:

    spice-boy said:
    Wow, the 2 dozen Telsa owners get an awesome music service, so jealous........
    There are way more than 2 dozen Tesla owners within a mile of my house.
    Really? Where do you live?  I do see them about 3 or 4 times a week and it's usually while I'm out and about, not just doing errands around town.  As I mentioned in my last post, I've seen a Model X where I work a few times but it's the only one I've seen.  I mostly see the Model S.  I wouldn't say it's common to see them but I certainly wouldn't say uncommon either.  Seriously, I see Ferraris and Bentleys more frequently than I see Teslas.
  • Reply 19 of 35
    I'm not interested in maintaining music libraries on multiple services so I'm inclined to use a service that not only cares about my music experience in my car but also in my home, at my work and every other time I'm not in my car. 

    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. 
    spliff monkey
  • Reply 20 of 35
    MacProMacPro Posts: 16,938member
    dcgoo said:

    spice-boy said:
    Wow, the 2 dozen Telsa owners get an awesome music service, so jealous........
    There are way more than 2 dozen Tesla owners within a mile of my house.
    You beat me to it, same here.
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