Quote:
Originally Posted by dan321
These subscription-based apps are just a variant of something that's been around a long time, utility-based pricing; you pay for the features you want. But with the apps, you subscribe to the features you want.
Now that cars are a piece of software with wheels I think it's the direction the industry will go; whether we like it or not. It's the direction that the software industry seems to be going. A software product needs constant fixing and improvements. A company making the software needs a steady incoming money stream to do that.
A few years ago, Adobe moved to subscription-based products. It generated tons of negative comments from users; "I'm switching from Photoshop to Gimp." What was happing to Adobe was users would buy a copy of Photoshop and wait for 2 or 3 or more major version changes before they would buy an upgraded version.
Adobe made the switch in spite of the user comments and did quite well by it. IMHO, I think users did too; now all the Adobe products are getting updates to fix and improve things in a more timely fashion.
Originally computer software was never sold, it was given away with hardware, but you had to subscribe to support. For the most part, the software was useless without support. That's how companies got the money they needed to fix and improve their software.
Software products were sold for PC's when they come out. It's taking a long time, but I think industries realize there isn't a practical way to "sell" software.
Please don't shoot the messenger  ; subscription to auto apps is the future. It will get interesting if the auto industry opens its "software with wheels" products to third party apps. |
I don't think it is the future... I think manufacturers are testing it out because they are throwing everything out there and seeing what sticks... I don't think this one will stick (but I'm no oracle).
Adobe didn't need to go subscription software as they flourished for decades without such a pricing model. Their shift was heavily geared toward extracting revenue from hobbyists and non-corporate professionals who wouldn't upgrade regularly. With the new model, they can extract revenue without needing to deliver enough value to entice users to upgrade (the users can't hop off the subscription model).
What BMW is doing is similar to what they are doing with BMW Access and other experiments. Everyone in the industry is concerned that increased automation will so convert the driver to a passenger that people will lose interest in cars beyond pure appliances. At that point, they may be more inclined to "rent" them, but on the road between now and there how much renting will they be OK with it.
The more you can rent the more you can extract in recurring revenue and you have bean counters happier than a pig in... well you get the idea.