Futures

BMW Launches Subscription Service for Heated Seats and More in Korea, (from page 20220717.)

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Summary

BMW has introduced subscription-based options for features like heated seats in Korea, charging ₩24,000 ($18) monthly or offering yearly and multi-year plans. Customers have the flexibility to pay for these features temporarily or permanently, with other options including driver-assistance software and a heated steering wheel also available for subscription. While this model has sparked cynicism, it offers users the chance to try features without a long-term commitment. However, the potential for modders to unlock these features without payment exists, drawing parallels to similar practices seen with other car brands.

Signals

name description change 10-year driving-force relevancy
Subscription-Based Car Features BMW offers heated seats and other features as subscription services in Korea. Transitioning from one-time purchase of car features to ongoing subscription payments. Widespread adoption of subscription models for car features, influencing consumer purchasing decisions. Increasing demand for flexible payment options and ongoing revenue streams for automakers. 4
Modding Culture and Software Unlocks Car enthusiasts may find ways to unlock subscription features without payment. Shift from paying for features to finding alternatives through community-driven modifications. Potential rise in a subculture of tech-savvy owners bypassing subscription fees through hacking or modding. Growing DIY culture and technological savvy among car enthusiasts. 3
Digital Infrastructure in Cars BMW’s options can be added or modified via smartphone or computer. From traditional car features to digitally managed options accessible remotely. Cars will increasingly rely on software updates and digital management for features and enhancements. Advancements in automotive technology and connectivity, making cars more like digital devices. 5
Consumer Acceptance of Paywall Features Some consumers may accept paying for features they already have in their cars. Shift from traditional ownership and access to a subscription-based access model. Consumer behavior will evolve to accept ongoing payments for features rather than one-time purchases. Changing perceptions of ownership and service models in the digital age. 4

Concerns

name description relevancy
Subscription Economy Impact The shift to subscription fees for basic car features may alienate consumers and set a precedent for future automotive purchases. 4
Black Market Modding Potential for increased modding and hacking to bypass subscription fees, leading to safety and legal concerns. 3
Consumer Backlash Customers may resist or reject subscription models, leading to negative brand perception and loss of loyalty. 4
Digital Divide Higher costs for optional features could exacerbate inequalities between affluent and budget-conscious consumers. 4
Software Vulnerabilities Introducing subscription-based features could create opportunities for security vulnerabilities in vehicle software. 3
Market Saturation of Subscriptions An influx of subscription models may create consumer fatigue and diminish the perceived value of added features. 3
Precedent for Future Sales Models BMW’s model could inspire other manufacturers to adopt similar subscription strategies, altering the automotive sales landscape. 5

Behaviors

name description relevancy
Subscription-Based Vehicle Features Car manufacturers offer physical features like heated seats as subscription services, allowing flexible payment options. 4
Modding and Software Hacking Car enthusiasts exploit software vulnerabilities to unlock paid features, transforming ownership experiences. 5
Consumer Flexibility in Vehicle Customization Owners have the option to subscribe, purchase, or try features, reflecting a shift towards personalized vehicle experiences. 4
Market Testing for Digital Services Automakers test subscription models in various markets, indicating a trend towards digital service monetization. 3

Technologies

name description relevancy
Subscription-based automotive features Monthly subscriptions for physical car features like heated seats and driver-assistance software. 4
Connected Drive technology Digital connectivity options in vehicles allowing features to be added or paid for remotely. 4
Artificial noise generators for electric vehicles Technology that adds sound to electric cars to enhance driving experience. 3
Car feature unlocking via software modification Modding practices to unlock car features using software and hardware modifications. 3

Issues

name description relevancy
Subscription-based automotive features The trend of charging for physical car features like heated seats on a subscription basis may influence consumer expectations and market dynamics. 4
Consumer backlash against paywalled features Potential dissatisfaction among consumers regarding the monetization of previously standard features may lead to brand loyalty issues. 4
Modding and software unlocking The rise of car enthusiasts finding ways to unlock subscription features through modding may challenge manufacturers’ control over software. 3
Market segmentation and pricing models Differing subscription prices in various markets could lead to disparities and confusion among consumers globally. 3
Impact on used car market Subscription features may affect the resale value of vehicles, as buyers might be wary of ongoing costs for essential features. 3