BMW is continuing to expand its subscription-based vehicle features through its ConnectedDrive platform, despite backing down from a controversial plan to charge monthly fees for heated seats. The company , reportedly retreated from that specific plan, but remains fully committed
to ConnectedDrive as a core part of its global aftersales strategy, according to a company spokesperson.
The shift towards subscription services allows BMW to activate features that are already built into its latest models but are initially switched off. Drivers then pay a recurring fee – monthly, in most cases – to gain access to these functionalities. This approach enables the automaker to deliver upgrades over-the-air
, granting access to specific features for the duration of the subscription period.
While the heated seat subscription garnered significant negative attention, BMW’s broader strategy extends beyond comfort features. The ConnectedDrive platform encompasses a range of services, including emergency support, navigation enhancements, vehicle diagnostics, and remote features. Features requiring data connectivity are particularly likely to be offered on a subscription basis.
The Rise of Automotive Subscriptions
BMW is not alone in exploring subscription models for automotive features. As of , several automakers are adopting similar approaches, offering subscriptions for driving conveniences like remote start, heated seats, and even advanced driver-assistance systems. Tesla, notably, pioneered this trend in with its Full Self-Driving capability subscription.
The appeal for automakers lies in creating a recurring revenue stream and offering customers flexibility. Instead of paying a large upfront cost for all available features, drivers can choose to subscribe only to the services they actively use. However, this model has also faced criticism, with concerns raised about the long-term cost of ownership and the idea of paying for features that were previously considered standard.
A History of BMW Subscriptions
BMW’s foray into subscription services isn’t entirely new. Back in , the company initially offered Apple CarPlay as a subscription for $80 per year. This decision was met with considerable backlash, as CarPlay was often included as standard equipment in much less expensive vehicles. The $80 annual fee was eventually discontinued, but it foreshadowed BMW’s willingness to explore subscription-based access to features.
The heated seat subscription, introduced in Korean-market BMWs, reignited the debate. While a lifetime subscription option was available in Korea, the very concept of paying to use a pre-installed hardware feature proved unpopular. Dacia, a Renault brand, even took a playful jab at BMW by offering free hot water bottles to customers, highlighting the contrast between their approach and BMW’s subscription model.
Technical Considerations and ConnectedDrive
The implementation of these subscription features relies heavily on data connectivity. BMW’s ConnectedDrive platform leverages this connectivity to remotely activate and deactivate features. This means that features like real-time traffic alerts, navigation map updates, and certain advanced driver-assistance systems require a constant data connection to function. The ability to deliver these updates over-the-air
is central to the subscription model.
However, the reliance on data connectivity for basic features, such as heated seats, has been a point of contention. Critics argue that features that are physically present in the vehicle shouldn’t require a data connection or a subscription to operate. The debate centers on the fundamental question of ownership and access – should customers own the features they pay for, or are they simply renting access to them?
The Future of Car Software and Service Subscriptions
The automotive industry is undergoing a significant shift towards software-defined vehicles. As cars become increasingly reliant on software and connectivity, subscription models are likely to become more prevalent. Endurance Warranty notes that subscription options now exist for a wide range of services, from streaming entertainment to pet supplies, and the automotive sector is simply following this trend.
The long-term implications of this shift remain to be seen. While subscription models offer potential benefits for both automakers and consumers, they also raise concerns about affordability, transparency, and the potential for vendor lock-in. As BMW and other automakers continue to refine their subscription offerings, it will be crucial to strike a balance between innovation and customer satisfaction.
As of today, , BMW continues to emphasize its commitment to ConnectedDrive, signaling that subscription-based features are likely to remain a significant part of its business model for the foreseeable future.
