BMW Still Stands By Subscriptions, Lays Out Its Case

BMW got the memo about putting heated seats behind a paywall and abandoned the harshly criticized subscription service. However, that doesn’t mean it’s completely moving away from charging extra for features you might want after buying the car. The company’s thinking is that a customer may want to save money when ordering the vehicle by not ticking certain boxes on the options list.

If the owner changes their mind later, that feature could be unlocked by paying a fee. In theory, it’s a win-win situation, though the reality is far more nuanced. If the hardware is already in place, why artificially restrict access to it? That was the case with heated seats, hardly groundbreaking technology, especially when far cheaper, mainstream cars offer them as standard equipment.

BMW’s Head of Product Communications, Alexandra Landers, told Drive magazine that activating some features, particularly those related to advanced driver-assistance systems (ADAS), incurs ongoing costs for BMW when they’re used. Another relevant example that springs to mind is real-time traffic information.

‘If you use it, we have to pay for it. It’s not everything important [to every customer], but the technology is important [to have in all vehicles], and we still believe in the option offer structure that you do not have to decide from the start if you want this ADAS [safety] system.

There are a lot of barriers for people who think they never need it, but they can decide even in a special case – for example, for the first time in a real traffic jam, they say, ‘Oh, maybe I should have bought it two years ago.’ And then they can, you know, add it online.’

Although some features can be unlocked for a fee, BMW says it won’t charge customers more money for extra power. Likewise, it’s ruling out the Tesla path by offering over-the-air software updates to increase an electric vehicle’s range.

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Source: BMW

Motor1’s Take:  We can all agree that most in-car subscriptions are an automaker’s way of nickel-and-diming customers. That said, it makes sense for features that generate ongoing data usage costs to come at a premium. After all, these companies aren’t running a charity.

But features that already have hardware installed in the car should be available without an additional charge. BMW’s ConnectedDrive store in the United States lists Adaptive M Suspension among its available subscriptions. The hardware is clearly there, yet it’s locked behind software.

Remote engine start, high-beam assist, and the parking assistant system can also be unlocked via microtransactions. In the new iX3, Drive reports that the 360-degree camera will likewise be offered as a subscription.

A deeper dive into the ConnectedDrive store also reveals a few superfluous items, such as a light show when you unlock the car or artificial sounds pumped through the speakers.

The list of available subscriptions varies by model and market. It also depends on the vehicle’s standard equipment and the options selected when the customer places an order.