Roger Fingas
Tesla is allegedly in talks with major record labels, hoping to offer its own streaming music service for owners of vehicles like the Model 3 and Model S — apparently skipping default integration of options like Apple Music, Pandora, or Spotify.
The automaker is likely interested in offering multiple tiers, the most basic being a Pandora-style radio option, label sources explained to Recode. The service would come bundled with each car — a practical option, since Tesla's products have large touchscreen dash interfaces and built-in internet connectivity.
Tesla has deflected inquiries. "We believe it's important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose," a spokesperson said. "Our goal is to simply achieve maximum happiness for our customers."
The Model S and X already offer some internet radio options, along with Bluetooth and USB connections, but the only integrated app-based service is Spotify, available only outside the U.S. Also missing is compatibility with Apple CarPlay or Android Auto, which would bridge with phone apps.
A bundled music service would get around some of these issues, while potentially offering Tesla an extra source of income if people have to pay for ad-free on-demand streaming. The company is also beginning to have the number of drivers needed to support a service — it already has some 400,000 preorders for the Model 3, and has ambitions to compete directly against established brands like Ford and GM.
Apple is currently in its own negotiations with record labels, but with the aim of lowering the money it owes for content on Apple Music and iTunes. Higher payments initially helped lure labels and artists to Apple Music.
Christine McKee
William Gallagher
Malcolm Owen
Andrew Orr
Sponsored Content
35 Comments
This seems like a dumb move. There's no way they'll ever get enough subscribers to warrant the cost of getting on-board with labels and artists or building a music service that could revival Spotify, Apple Music, or others.
I best the best method for enticing and keeping buyers is to simply have the entertainment options that buyers want. This also includes adding CarPlay and Android Autio to their systems.
A bizarre, off-target decision from Musk/Tesla. What'll they do next... open a chain of Tesla-only car washes? Maybe Amber Heard is affecting Musk's ability to think clearly.
As a Tesla owner I'm not sure of the point of this. As for adding CarPlay or Android Auto I have no trouble streaming music, podcasts or audiobooks through the audio system via bluetooth (and is controllable via the Tesla's audio controls). The big advantage of CarPlay is getting maps and directions in cars that wouldn't otherwise have GPS. The Tesla guidance system is a combo of Garmin and Google Maps which is more than adequate.
would just prefer car play from a car owner perspective, but am curious to see how tesla seeks to innovate in this space. my guess is that they are 1) just trying to control their ecosystem and create a good user experience or 2) generating legitimate pressure on spotify/et al so they allow them to integrate with their service in the USA for a reasonable price.