News on September 9th, BMW recently announced the cancellation of its heated seat subscription service. This decision is a strategic adjustment based on the low acceptance rate of the service. It is understood that BMW board member Pieter Nota revealed that some customers were dissatisfied with the subscription service and believed they had paid twice. While BMW isn't completely phasing out subscription services, the company has decided to focus its efforts on software and service-related products, such as driver and parking assistance features. This decision is based on the market trend that customers are more willing to subscribe to these features after purchasing a car, and the company also sees potential opportunities in this area.
BMW launched a monthly subscription service for heated seats last year. However, the move caused some controversy in the market. Particularly in the US market, where buyers can easily avoid paying additional fees, the implementation of subscription services has been limited. While subscription services are becoming a new trend in the automotive industry, automakers must adapt their subscription models based on consumer needs and preferences to ensure they provide them with valuable features.
At the same time, BMW decided to invest more resources in products related to software and services, which is considered a wise move. The decision comes against the backdrop of the increasing digitalization of the automotive industry, with manufacturers realizing there is huge potential for software-related services and features when it comes to driving and owning cars. Consumers are showing strong interest in features such as enhanced navigation and advanced driver assistance systems and are willing to pay for them. Therefore, focusing on these features is expected to bring more market share and growth opportunities for BMW.
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