BMW frequently has good ideas about the future of cars. This… this is not one of them.
The automaker hopes to introduce what are basically micro-transactions for motor vehicles, saying that it “…sees the car as a digital platform.” Which, if you’re familiar with the tactics of game developers like Activision and Electric Arts, means they’re about to use that platform to try and make more money. By charging you to turn on features that are already installed in the vehicle.
Really? Really really?
And that’s not us guessing. BMW’s rather upfront about it, calling it “personalisation” and saying that “BMW provides the hardware and software in the vehicle at the time of manufacture for the implementation so that it can be adapted later on as required and in accordance with customer preferences. If, for example, vehicle functions were not yet requested at the time of purchase, they can be added later.”
Which may not the brightest idea the company has ever had. Pricing isn’t clear but it seems that BMW might turn things like heated seats into a subscription-based service. Advanced systems like adaptive cruise control or automatic high beams might also find themselves subject to a monthly (or tri-monthly) subscription charge, said subscriptions being available through the in-car systems or the My BMW app. Because a subscription is just the thing you want to saddle yourself with when you’ve already paid BMW’s prices for a new vehicle.
It could work (and it also might backfire)
The idea isn’t new. Tesla has a similar program, where users can pay more to have features (which, at the time, don’t exist) added to their vehicles. Other auto-makers also seem to want in on that sweet, sweet subscription service money. However, the idea of paying a monthly fee to enable hardware that’s already installed in a vehicle… that’s a big pill to have to swallow.
That said, BMW’s plan could work. If a customer paid for a fully-loaded vehicle and later opted to turn off features in order to secure an instalment reduction, we can see a few folks going for that. But perhaps not that many. BMW has previously attempted to charge an annual fee for Apple Carplay support, a controversial initiative that was first reduced in price and then scrapped entirely.
BMW’s ‘cars as a service’ idea is far more likely to be met with hostility or, worse for the company, ingenuity. Imagine buying one of BMW’s newest vehicles at the lowest spec, downloading a home-brewed software update and enabling all the features you didn’t pay for. BMW may find itself dealing with all the usual motor vehicle issues, as well as a bunch of those face by phone operating system and video game developers, as users attempt to turn on hardware they already know is there. And we’ve been faced with enough DRM (digital rights management) issues to know that we don’t want to see it installed in a motor vehicle.
Coming soon
And if you’re wondering when this ‘feature’ might rock up, all BMW’s running the company’s ‘Operating System 7’ will soon get an update that’ll allow BMW to fiddle remotely with the vehicle. Which will include, possibly, offering subscriptions to optional extras you didn’t opt for when you first bought the thing. It may be some time before vehicles with all those extras pre-installed roll off the lot, however.
