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In-car subscription risk is in execution, not business model

OEMs are exploring how best to participate in the subscription economy, and the relevance of their digital services to customers is key. By Will Girling

The global digital subscription service economy, which has been shaped by tech industry pioneers like Spotify and Netflix since the late 2000s, could be worth US$1.5tr by 2025, according to The Washington Post. Representing 100% growth on its 2021 valuation, it is not surprising that vehicle manufacturers increasingly want to capture their own slice of the pie.

Special report: Monetising digital vehicle services

General Motors, for example, believes it could generate US$25bn from digital service subscriptions alone by 2030, with Chief Executive Mary Barra citing internal research that consumers are comfortable spending up to US$85 per month on average. “When it comes to subscription services, it doesn’t really matter what industry you’re in,” states Stephen Hateley, Head of Product and Partner Marketing at DigitalRoute. In an era where digital products are essentially ubiquitous, “subscription just means a way to access them.”

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