So, why would Tesla want to reinvent the spoon? And why would the music industry be interested?
As avid music listeners, we have lots of options when it comes to music streaming-services. But Tesla takes pride in its high-tech cars and high-tech dashboards, so launching its own service would allow the successful carmaker to take control over design and offerings.
And for the labels?
For the music labels, Tesla’s entry onto the stage would widen their base of potential customers and create a competitor to existing services. Although it wouldn’t necessarily endanger Spotify and Apple’s combined 75+ million subscribers, Tesla is rapidly growing. As of January, Tesla has sold over 100,000 cars and received at least 400,000 pre-orders for its Model 3 (the latest official number is from 2016). And according to Adam Jonas, an equity strategist at Morgan Stanley, we could see around 7 million privately owned Teslas and 2 million Tesla Mobility vehicles in 2030.
Jonas explains that Tesla is very interested in evolving from a carmaker to a “living room on wheels”. The key to this is data about its customers’ tastes – data that is being gathered by and belongs to developers of apps for use in cars. By developing its own apps, such as a music-streaming service, Tesla would own this treasured data. And because the buying power of Tesla owners is significant, this information could open new and significant revenue streams.
Tesla wouldn’t be the first automaker to explore this avenue. GM has partnered with Amazon to make its music-streaming service available in its cars. Ford offers its own suite of in-car streaming services, as well. And let’s not forget about Google’s Android Auto and Apple’s CarPlay.
It’s unclear if Tesla’s music service will become a reality. Its success would surely depend on Tesla owners’ willingness to add yet another on-demand service to their portfolio. Whichever way this adventure goes, Geeks & Beats will keep you updated.