Tesla music streaming service? What’s Elon Musk considering?

Yesterday, Recode reported that Tesla is in talks with a number of report labels about creating a brand new music streaming service. Presumably, the brand new service can be built-in into Tesla’s present infotainment system and, in idea, operate precisely like Spotify, Apple Music, or Google Play Music. It is a unusual and admittedly pointless transfer for the automaker. We can not see how this may profit anybody, Tesla included.

Making a music streaming service from the bottom up is not any small job. As nice as a few of Tesla’s merchandise could also be, there is no such thing as a method a proprietary music streaming service will compete characteristic for characteristic with different companies which were doing this for years. Take a look at how lengthy it is taken for Apple Music to actually catch as much as Spotify. Some would argue that it is nonetheless not fairly there. At launch, there can be hiccups and bugs and absolutely can be lacking some options that clients count on.

There’s additionally the issue of including one other streaming service to the combo. Along with Spotify, Apple Music, and Google Play Music, there’s Pandora, Amazon Prime Music, Tidal, and extra. Clients have a tendency to hitch one and keep it up. Some have been with their specific service for years, and nothing in need of a whole shutdown would pressure them emigrate elsewhere.

Whereas Tesla could also be in talks with some report labels, it may take quite a bit to safe the rights to the identical vary of music as different companies. It is taken years for Spotify and Apple Music to fill out their libraries. Some labels and musicians had been holding out for extra money or just did not like the thought of streaming versus shopping for. Do not count on an artist-for-artist lineup for Tesla’s service.

Tesla is presently laborious at work going up towards established automakers. Including in one other monumental struggle can be stretching cash and sources skinny. Whereas Tesla has accomplished an amazing job of becoming a member of the fray and forcing an trade to vary, competing towards tech corporations requires a special set of expertise. These corporations are open to vary and fast to pivot to satisfy new rivals. Regardless of an amazing market valuation, Tesla has by no means turned a revenue. Investing a variety of capital into a brand new music streaming enterprise on the identical time it is planning automobile manufacturing in China, creating new fashions and increasing on different fronts appears wasteful and a distraction.

There are many complaints proper now about Tesla’s lack of Android Auto and Apple CarPlay. Tesla’s infotainment system is among the weakest components of its automobiles. Whereas it is not alone in having a lackluster infotainment system, the addition of Android Auto or Apple CarPlay would go a great distance towards serving to it. Clients have been vocal about asking for it.

There’s one huge profit for Tesla. Not being tied to a different firm provides Tesla some quantity of freedom. With an in-house service, Tesla controls all the things. The factor is, Tesla already has Spotify integration in Europe. It is already given over management elsewhere on the planet. Clients there appear pleased with the service, so it is laborious to see how the advantages outweigh the cons.

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