Do you have a gym membership? Do you pay for a TV subscription or mobile phone? Subscriptions are part of the new normal and allow individuals to pay for additional luxuries without having to commit long-term.
Leading manufacturer BMW has sparked some controversy after offering a new online subscription to car owners. The extra cost will allow drivers to activate heated seats for £15 a month. Whilst subscriptions are not breaking news to the industry, this novel heated seat offer is a new development. The move is the latest example of manufacturers using subscriptions to offer high end optional upgrades to all customers.
What does it offer drivers?
The company states that the new addition, activated through BMW’s ConnectedDrive Store, will allow drivers more flexibility, and provide used car owners with the opportunity to add new features not previously selected upon purchase.
Drivers will be able to take this new feature for a ‘test drive’ by purchasing a short-term trial before committing to a subscription purchase. Those who fancy a warm, cosy driving experience during the colder months can purchase unlimited use of the luxury purchase.
A need or a want?
The automaker’s move to offer additional features through a paywall has seen some customers struggling to understand the concept and benefits to users, the timing being viewed by some as unfortunate during challenging economic times.
However, is this really gatekeeping software? BMW cars already have all the necessary equipment installed.
Certainly, a wider industry debate to be continued
The news of the manufacturer’s decision comes as part of a wider industry trend and drivers should expect to see other leading automakers follow suit. Several car subscriptions have been launched in recent years and this will continue to grow. Leading car manufacturers Car Volvo, and Jaguar Land Rover have already offered subscription services for vehicles. Rumours are that Volkswagen, and Hyundai may soon step on board the subscription train.
All this points to a market with huge potential and an increase in consumer interest. A potential mainstream market doesn’t arrive without demand. We suspect that many will have called for increased flexibility and the subscription of premium features offers drivers just this.
The main issue manufacturers will have is navigating the consumer confusion over how a subscription works. A question on many individuals’ lips has been “is the German manufacturer well within their right to place a software block on vehicles?”
BMW has recently spoken out on Twitter, reassuring customers that the new development will in fact not mean all owners have to pay for a subscription or any other options upon purchase. The offer can be controlled completely by the driver and at their leisure.
We would love to know your thoughts on the new emerging industry trend.
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