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Are cars the next big thing in new media?
A digital revolution is taking place in the automotive industry. 24/7 contact and content accessibility in cars deliver great benefits to car owners, such as simplicity, convenience and immediacy. Manufacturers want to grow their revenue by providing such innovative products and implementing them in cost-effective ways. However, they do not want to manage content or tap into the complex territory of intellectual property right issues. The same is true for manufacturers of in-car entertainment or infotainment devices.
New technology platforms
New technology platforms already provide content aggregation and distribution solutions. These platforms manage revenue streams, content sourcing and complex territorial content rights issues as well. They provide integrated solutions for content providers, manufacturers, carriers and consumers. The underlying technology caters for any form of data, voice, music, movies and documents, thus providing unique customer solutions. Such technology can help manufacturers to add digital media content to cars.
New revenue streams
The development of in-car digital technology brings with it the potential for several new revenue streams. For manufacturers this could be advertising, sponsorship and subscriptions paid either by advertisers or end-clients. The providers of such applications could benefit from licensing, content management services, hourly rates for maintenance and project development fees. Plus, the provided advertising can easily be targeted at the desired audience – the car owner – making the advertising space more valuable.
What steps need to be taken by manufacturers to launch the next generation infotainment systems?
A feasible business model needs to be identified that can lift the barriers between industries and transform cars into a real new media channels. The starting point is that consumers receive digital media provided by media content providers (such as TV/radio/online stations) who generally receive revenue from advertisers.
Consumers already experience the convenience of managing their banking, conducting travel research and shopping from the palm of their hand on a variety of mobile devices. Will tomorrow’s car become a new dominant and valuable media device?
For more articles about future trends in the automotive industry, click here.