In the summer of 2017 there was some news that Tesla was developing its own music streaming service. Most people seemed to think it was a pointless distraction for the company, but I've been thinking about this a lot lately and have come up with some good reasons Tesla would pursue this:
- Cost
Tesla's customers stream a LOT of music, so cutting out the middleman could be financially attractive. - Licensing
The current streaming app in the car does not cache music, likely because of licensing restrictions. But if Tesla were negotiating those terms, they could cache common songs so that they don't need to be downloaded from the internet every time. This would also make the streaming music work in areas with poor cellular reception. It would also save Tesla a lot of money because, for now, they pay for all cellular service. By caching songs the data used would be significantly reduced. - Karaoke Mode, etc.
Tesla, by way of an Elon tweet, has stated it is working on a karaoke mode. This might be difficult or impossible to do using Slacker or Spotify. And who knows what other unusual features like this they are considering.
And the big one...
- Full control of the user experience, stupid
This has always been Apple's mantra and has worked very well for them. If Tesla runs the music service, they can integrate it with the car's hardware very closely. They can learn a lot more about your preferences than a third party can. Right now Slacker learns about your musical preferences by analyzing what you skip and what you "thumbs up" or "thumbs down". That's all they can do. But if Tesla were in full control they could rate songs based on which ones make you drum on the steering wheel or bounce in your seat, which ones make you turn up the volume, which ones you sing along with, etc. There's a LOT more useful information available to Tesla than they would let Slacker access. With full software and hardware integration Tesla could do other creative things like playing music or podcasts related to your geographic position, or synchronizing music between nearby vehicles for tailgate parties, or... things I haven't imagined.