The German automotive giant had canceled its heated seat subscription service following public backlash. The company admitted this was a flawed strategy for its initial foray into the subscription market, but it has not abandoned the subscription system entirely.
In 2023, BMW abandoned its heated seat subscription service, which it had launched in 2022, following public backlash. The company admitted that this was a flawed strategy for its entry into the subscription market. However, the phrase "for its initial foray" is important here, as the company has not entirely given up on its strategy of charging for additional features after a vehicle has been purchased.
Hardware Ready, Software Locked
At the core of BMW's strategy is that vehicles leave the production line with all their hardware, but some features are locked via software. The company's Head of Product Communications, Alexandra Landers, describes this situation as a "win-win" scenario. According to Landers, a customer doesn't have to pay for a safety system (ADAS) they don't need when purchasing the vehicle; however, if they need this feature later during heavy traffic congestion, they can activate it with a single click.
Landers argues that features requiring data usage, such as real-time traffic information or advanced driver-assistance systems, create a continuous cost for BMW, which is why the subscription model makes sense in these areas.
Which Features Are Subject to Additional Charges?
In BMW's ConnectedDrive store, notable features that are physically present in the vehicle but locked by software include:
- Adaptive M Suspension: The hardware is in the car, but enhancing its performance is subscription-based.
- Parking Assistant and 360-Degree Camera: These systems are expected to be offered via subscription, especially in the new iX3 model.
- Remote Engine Start and High-Beam Assistant.
- Entertainment and Visuals: Car unlock light animations and artificial engine sounds from the speakers.
BMW, however, maintains a distance from some strategies pursued by Tesla. The company explicitly stated that it will not charge customers extra for fundamental performance features such as horsepower increases or extending battery range.
The general consensus in the automotive world is that charging for data-intensive services (such as live maps, internet access, etc.) is reasonable. However, locking a physically present suspension system or camera in a vehicle that has already been paid for is still widely regarded by users as an "unethical" revenue stream.
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