[The Automotive Enthusiast]

Want adaptive headlights? Don't forget to pay for the subscription. That's retarded.

[David70]

Originally Posted by RPiM5

Unfortunately for us old timers, this is the business model of the future. Actually it's already here and yes it is all about making more money for the company BUT the customer can benefit too in certain ways.

For example, it'll cost BMW less money to just produce all BMW's with the Drivers Assistance Package hardware installed as they won't need to vary their production lines as much and they can streamline their products. However, as a customer/subscriber we either stand to lose more money in the long run or save more money in the long run. If we choose to subscribe and then pay as we go, over the long run (years and years) it will have cost us more money to use the features rather than if we just paid for it upfront when we bought or leased the car, BUT a subscription model is advantages in some ways as it allows the customer to turn on or off a service whenever we want, which could potentially save us money in the long run. My Netflix is a perfect example. There have come times in my life where I just don't have time to watch Netflix so I cancel the service (thus saving me money) and then when I do have time again, I can reactivate my service again and continue to pay for what I use when I want to. We could potentially do the same for car features.

With cars becoming more like rolling computer technology, software activation/deactivation of car features via cellular wireless link has become so much more easier. Things will change a lot when the 5G network gets up and running too. This is just the beginning. With 5G technology, the possibilities are almost limitless. Just look back to when Tesla unlocked increased range on all Tesla cars via a wireless connection in order to allow Tesla vehicle owners to escape a hurricane headed for Texas. This is the kind of connectivity car manufacturers want and will get as they can now just build it into the cars architecture right from the beginning.

Subscription services for car features is coming, and we better get used to it.

I agree with some of this but once you put the technology and hardware in every vehicle the way you come out ahead is to get the people actually paying for it to cover the costs of all of the cars. If you put it in all cars and few pay for it likely wasn't worth the time to do it.

When you say it is already here, where? The only things I have seen work to some degree are Onstar, XM/Sirius, and 4G. Onstar you get a person who wants to be paid, XM/Sirius, similar to Netflix the performers expect to be paid and the other option is more advertising. With 4G for your car, I can't see a reason to buy it.

They need to come up with technology I really want to pay a monthly fee for or make it really cheap, I have seen no technology that matches this yet. Maybe autonomous driving will be subscription based and I would actually pay for it, otherwise I can't think of anything worth the money. I have the driver assist turned off in my car as it goes off every time I don't have my blinker on and I cross the line, in the city this happens all of the time and I don't need a warning.

I am amazed that Tesla turned on more range as an upgrade and customers were ok with it but sometimes I think this group is like a cult.

[cfm56d7b]

This is a slippery slope. The only way for BMW and other manufacturers to charge for something continuously is to offer something which provides continuous value above and beyond the basic standard.

Basic standards evolve. Rear view cameras are now standard. Blind spot warning feature might be next.

Imagine a local dealer offering a 3 year lease special for $399 per month.

With all the added monthly subscriptions that a consumer cannot live without, the monthly payment is now $699 per month. Truth in advertising debate will now extend to cars just like the hotels and airlines adding practically mandatory fees.

How to define continuous value above and beyond the basic standard is what the issue is.

Monetizing individual elements of basic standards by creating monthly subscriptions is a tempting approach for manufacturers which consumers are too intelligent to accept. Voting with their purchasing power will send a powerful message.

I wish I could echo everyone's great examples.

Charging a monthly fee for ...

- Drying function in a dishwasher. My favorite.
- Ice maker in the refrigerator
- Nutritional values on a label. Purchase one year pass to determine caloric content from one manufacturer. But it can be free if you send in 100 UPC labels
- Speedometer showing speeds above 75 miles per hour. If you want to speed on public roads or track your vehicle, it ought to cost more
- Ability to connect 2 monitors to your laptop. Those USB-C ports are working overtime after all
- $21.88 for all brakes with blue calipers
- $23.98 for all brakes with red calipers
- Market price for all brakes with yellow calipers determined on the daily closing price of a to-be-issued derivative by BMW Financial Services
- Market price for access to sophisticated trading software which will allow discerning drivers to hedge their monthly expense for yellow brakes.

It's a slippery slope.

[subliminalaudio]

No way! Facepalm Bmw

[positiveions]

Another gimmick to siphon money out of us

[Yeineken]

It's actually very smart. BMW can finally make some profit off all these base zero optioned 330i's (328i) running around.

[babaikram]

Originally Posted by rkmjr

OK, I personally did not like having to pay $300 for Apple Car Play (ACP) in my 18' M2 when other companies do not charge anything for ACP. But I did and use it quite a bit and glad I have it. But I heard they are gong to give it for free in the 19's and charge a subscription of $85 for it. Glad I got an 18'! Anyway, if this is the route BMW is taking, there is a good chance my next new car will NOT be a BMW. I am still using MS Office 2011 for my Mac and will NOT buy a subscription. The phrase "nickel and diming" is starting to come up a lot in discussions regarding BMW's of late. You pay a premium for a premium car and then they start this type of business model. Kinda makes me rethink my automobile buying habits.

When some of us complained bitterly about Apple CarPlay becoming a subscription service some suggested we were overreacting.

We Brits refer to this action as a slippery slope. Once they get away with one, they will introduce others.

BMW connected services used to be a one package for subscription. Now they have split it into multiple subscribed services. To make it worse the subscriptions are equipment based (car based) rather than individual (account) based like iTunes accounts that you can use your purchased softwares in multiple devices

So those that have multiple BMWs might need to shell out a thousand
of cash for ConnectedDrive services when their cars are older than 3 years (at least in the UK).

Well one has the option of switching to other automakers

[dreamspeed]

I got the same survey and marked I don't want to pay for any of that useless stuff.

[raysspl]

Can do without it. They can keep it.

[suprf80]

This is BMW's way to potentially lower the actual price charged for the vehicle and potentially avoid proposed tariffs (which the customer will pay) in some countries (e.g USA) and ridiculous taxes in others (e.g. Turkey). I suspect they are testing interest. The next survey will be "Will you pay 20% more for your existing car without any added features?"

[darksilkx1]

They want their hands in your pocket even after you pay for the car. We'll just following you around taking all we can monthly till you're ready for your next BMW. No thanks.

[Twin Peaks]

What a joke, it should continue to be a one time cost. I have given up saas before and I will do it again if this is the model they choose to run with. I didn't get a feedback or survey email. That being said, my next vehicle purchase itself will be my feedback, I'll let the money do the talking.

[nick3753]

So how hard is it to "jail break" these features?

[Fugly M3]

I got this too...I may have to join the group to rail against it!

[scrammer]

Ahhh the uncomplicated life of an e92 M3 owner!

[BMWZ4]

I think it'll be a small % of owners that won't subscribe to these "features" - I think a large % will sign up for a variety of available options.

I head-up an IT developer team for a large retailer. Over the last 18+ months, we've been exploring the whole "pay-to-play" field. During those 18 months, we've solicited thousands upon thousands of willing participants to tell us how they feel about a "subscription" model and a very surprising % agreed with our proposed strategy and very willing to pay for the privilege.

This is the way of the future; not just BMW or other car companies, but retailers and a host of other industries are toying with this strategy. Why? One (primary) answer - new revenue stream, generating high margins.

And now...our new strategy launches mid-Oct.

[Zeroblade]

Talk about petty...

Originally Posted by BMWZ4

I think it'll be a small % of owners that won't subscribe to these "features" - I think a large % will sign up for a variety of available options.

I head-up an IT developer team for a large retailer. Over the last 18+ months, we've been exploring the whole "pay-to-play" field. During those 18 months, we've solicited thousands upon thousands of willing participants to tell us how they feel about a "subscription" model and a very surprising % agreed with our proposed strategy and very willing to pay for the privilege.

This is the way of the future; not just BMW or other car companies, but retailers and a host of other industries are toying with this strategy. Why? One (primary) answer - new revenue stream, generating high margins.

And now...our new strategy launches mid-Oct.

Wouldn't this just apply to a company paying for a service VS an individual just wanting to own something?

[jondaman]

Originally Posted by P1et

Laughable. There is no service provided. It's a feature. It's like buying a dishwasher, but then having to pay Samsung a monthly fee for the drying function to work.

Yeah, but the same can be said about Apple CarPlay though. I think after my current M4 is done, I am going somewhere else...

[BMWZ4]

Originally Posted by Zeroblade

Talk about petty...

Wouldn't this just apply to a company paying for a service VS an individual just wanting to own something?

Why would you consider improving profits "petty"? Is it not the responsibility of any given public company to produce returns for their shareholders? Even for privately owned operations...isn't it the owners responsibility to generate profit so employees can enjoy job security?

And is it "petty" if said pay-to-play program is supported by the individuals who sign up for said pay-to-play program?

My opinion of course...

[Penguino]

One of the things people spend money that they didn't before is subscriptions. Hulu, Netflix, Apple Music,Dropbox, iCloud storage, etc.

All softwares have moved to that model as well, photoshop is $9.99 versus $700 every year for a new version, now that makes sense, $120 year for something that customers were paying $400-$700 every year to buy a new version.

This subscription-based model could be beneficial to make a standard car easily upgradable. That part makes sense. Pay $xxxx 6-months later when you regretted not getting parking assist and there it is. Great revenue source for BMW. But a yearly amount that's much higher than the retail value over 3 years makes no sense. That's excessive and consumers should revolt to be honest. Take the price you'd pay originally at time of order and add a maybe a 15-20% premium and that's fair. Or take the MSRP and divided by the term of the lease and charge a 20% premium over it. For example, $1500 for Assistance Plus, give me the option to buy it for ($1500/lease term) plus a 20% premium.

This is a great model only If the price makes sense, then the model makes sense. But if the price is outrageous compared to MSRP then it makes zero sense. If their subscription mode for leases is of any indication then I have little hope And if they make it only available via subscription, and force customers to go this route this will be the last draw for me and I'll be no longer a BMW customer. I'm already hanging by a thread.

[Hansell]

BMW: I have purchased 6 brand new vehicles from you since 2005. The ludacris apple play subscription (only car company that does it!) is one thing. If continue down this path, I will never own another vehicle from you again. Stop smoking crack. Next it will require 25 cents every time you want to make a seat adjustment! Want to open your trunk? 50 cents please. Turn up the radio volume? 1.25 please.

[enigma01]

I don't like this potential move by BMW one bit, but it's a natural progression (sort of).

You started with buying a car with cash, and then came financing with monthly payments. In the last decade or so, we saw a proliferation of leases.

What's next? Monthly subscription and car-sharing. Volvo is experimenting with that concept with all inclusive monthly subscription fees with a promise to let users upgrade/exchange into different cars more often. BMW is following suit.

As that happens, car manufacturers have to build cars with many more owners throughout the life cycle of a vehicle (say 3+ ownership changes every year), and they have to build cars flexible enough, so that "new" owners can customize to have features they want. This type of subscription per feature enables the new business paradigm.