In recent years, BMW has faced significant backlash over its attempts to monetize in-car features through subscription services. This strategy, intended to offer flexibility and ongoing revenue streams, has instead alienated many loyal customers and sparked widespread criticism.
The Heated Seats Controversy
One of the most contentious moves by BMW was the introduction of a subscription fee for heated seats. Despite the hardware being pre-installed in vehicles, BMW required owners to pay an additional monthly fee to activate this feature. This decision was met with immediate disapproval. Customers felt they were being charged twice—once for the car and again for features already present. Pieter Nota, BMW’s board member for sales and marketing, acknowledged the misstep, stating, People feel that they paid double – which was actually not true, but perception is reality, I always say. So that was the reason we stopped that. ([forbes.com](https://www.forbes.com/sites/alistaircharlton/2023/09/07/bmw-drops-controversial-heated-seats-subscription-to-refocus-on-software-services/?utm_source=openai))
Other Subscription Misadventures
The heated seats debacle wasn’t BMW’s first foray into controversial subscription models. In 2018, the company attempted to charge an annual fee for Apple CarPlay, a feature many competitors offered for free. This move was quickly abandoned after customer pushback. Similarly, BMW’s Access by BMW program, a $2,000-a-month subscription service granting access to various BMW models, was discontinued in 2021 due to limited demand. ([theverge.com](https://www.theverge.com/2021/1/14/22231451/bmw-access-subscription-shut-down-nashville-cancel?utm_source=openai))
Industry-Wide Implications
BMW’s experiences serve as a cautionary tale for the automotive industry. While subscription models can offer flexibility and additional revenue, they must be implemented thoughtfully. Charging for features that customers expect as standard, especially when the hardware is already installed, can damage brand reputation and customer trust.
Other automakers have observed BMW’s challenges and are adjusting their strategies accordingly. For instance, Mercedes-Benz faced criticism for offering a subscription-based enhanced rear-wheel steering system on its EQS model. The industry is learning that while software-based subscriptions for new features may be acceptable, charging for existing hardware functionalities is a delicate matter. ([motortrends.net](https://motortrends.net/news/mercedes-takes-swipe-at-bmw-for-milking-customers-with-subscription-fees/?utm_source=openai))
The Path Forward
In response to the backlash, BMW has shifted its focus toward software and service-related products. Nota explained, We actually are now focusing with those ‘functions on demand’ on software and service-related products, like driving assistance and parking assistance, which you can add later after purchasing the car. This approach aligns more closely with customer expectations and the evolving landscape of automotive technology. ([forbes.com](https://www.forbes.com/sites/alistaircharlton/2023/09/07/bmw-drops-controversial-heated-seats-subscription-to-refocus-on-software-services/?utm_source=openai))
Conclusion
BMW’s recent experiences highlight the importance of understanding customer perceptions and expectations in the era of connected vehicles. While the subscription model offers potential benefits, it must be applied judiciously to avoid alienating the very customers it aims to serve. As the automotive industry continues to innovate, balancing technological advancements with customer satisfaction will be paramount.
