As the overall experience becomes a crucial differentiator in choosing a car, streamed infotainment has the potential to help manufacturers reconnect with increasingly distant customers. The question is, how will they be paid for?

Whether streaming from the same apps customers have at home or delivering real-time traffic and location updates, in-car information and entertainment is growing increasingly influential in the car buying process. Both newer, EV-focused OEMs and their traditional counterparts are investing in partnerships and services that give drivers and their passengers high-quality access to infotainment while on the move.

Two obstacles stand in their way: connectivity and funding.

The 5G roll-out is helping deliver consistent connections, supporting the bandwidth necessary. But car makers must realize that cellular connectivity is imperfect, so back-ups, such as non-terrestrial networks, will also be required.

But then how will it be paid for? Consumers are used to paying minimal amounts for streaming services; they may question why the cost of having the same services in the car is so high. Hyper-targeted advertising could make it commercially viable and create new revenue opportunities for OEMs.

But to do that successfully requires access to relevant data, the ability to turn it into personalized communication, and the knowledge to do that in a way that protects individual privacy.

Want to know more? Look at our new factsheet on streaming services and the connected vehicle.

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