Deleted member 4581
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It won’t make sense to form a bond with a car that’s not really yours and runs on software someone else controls.
Honda outlined its recurring revenue strategy as a technology-driven transformation of its business. “Honda will strive to transform its business portfolio,” a press release read, “by shifting focus from non-recurring hardware (product) sales business to recurring business in which Honda continues to offer various services and value to its customers after the sale through Honda products that combine hardware and software.”
The linchpin of automakers’ new, software-first strategy is turning features into software upgrades, selling them individually or in packages, and installing them wirelessly by over-the-air (OTA) updates.
Although, by legal opinion, courts likely would not allow manufacturers to disable essential functions that affect a car’s intended operation—you know, as a car—anything else could be fair game for pay-as-you-go licensing: infotainment apps, comfort options like a heated steering wheel, or maybe even features that define a model’s dynamic character, like a sport sedan's horsepower and torque parameters or suspension settings.
Call it the Netflix model for car features; even if that company’s hit a speed bump of its own, the metaphor still works. Why have a customer pay once for a car feature when they’re increasingly used to subscribing to things and you can get a recurring source of revenue from them instead?
However it happens, maybe paying top dollar for a vintage, air-cooled Porsche 911 or 1980s Chevrolet C-10 pickup, or hanging on to that Corvair for another decade or two isn’t the worst idea. It may just be the ultimate future-proofing strategy.
https://www.thedrive.com/news/the-era-of-the-car-you-own-forever-is-coming-to-an-end
Honda outlined its recurring revenue strategy as a technology-driven transformation of its business. “Honda will strive to transform its business portfolio,” a press release read, “by shifting focus from non-recurring hardware (product) sales business to recurring business in which Honda continues to offer various services and value to its customers after the sale through Honda products that combine hardware and software.”
The linchpin of automakers’ new, software-first strategy is turning features into software upgrades, selling them individually or in packages, and installing them wirelessly by over-the-air (OTA) updates.
Although, by legal opinion, courts likely would not allow manufacturers to disable essential functions that affect a car’s intended operation—you know, as a car—anything else could be fair game for pay-as-you-go licensing: infotainment apps, comfort options like a heated steering wheel, or maybe even features that define a model’s dynamic character, like a sport sedan's horsepower and torque parameters or suspension settings.
Call it the Netflix model for car features; even if that company’s hit a speed bump of its own, the metaphor still works. Why have a customer pay once for a car feature when they’re increasingly used to subscribing to things and you can get a recurring source of revenue from them instead?
However it happens, maybe paying top dollar for a vintage, air-cooled Porsche 911 or 1980s Chevrolet C-10 pickup, or hanging on to that Corvair for another decade or two isn’t the worst idea. It may just be the ultimate future-proofing strategy.
https://www.thedrive.com/news/the-era-of-the-car-you-own-forever-is-coming-to-an-end