Why in-car entertainment will be a key differentiator for OEMs in electric vehicles

With the advent of electric vehicles (EV) comes a curious new scenario for OEMs and auto manufacturers. By removing the smartly engineered and traditionally brand typical engine from cars, OEMs are also removing a key differentiator from their key go-to-market messages. No longer will prospective buyers be able to discuss factors such as power and fuel efficiency as they consider their new car purchase.

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Aligning content and technology for in-car entertainment

In the next generation of cars there will be massively upgraded In-Car Entertainment (ICE) systems consisting of larger Head Unit (HU) screens and, in some cases, Rear-Seat Entertainment (RSE) screens, too.

Once these new cars take to the streets they will drive a surge in demand for ICE and services around it as they become a key factor in car-purchasing decisions. There will be an element of keeping up with the neighbours in driving demand, but the main factor will be that we’re living in a digital “always on” environment.

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Will the car be the next stage of the Streaming Wars?

The streaming wars are heating up and big-hitters like Netflix and Disney+ are focussing attention on their Originals offerings whilst others like Peacock and HBO Max are about to enter the scene and AVOD service like Pluto TV and Tubi grow in popularity.

This is demonstrated by the huge sums being ploughed into new programming, with Netflix estimated to have spent $15 billion on originals last year. According to data from Omdia, that sum resulted in 657 first-run original titles, up from 386 in 2018, and total first-run original hours of 2,769, compared to 1,537 in 2018, a year-on-year increase of 80%. Disney+, meanwhile, has said it will spend $1bn on original programming in 2020. Newer entrants to the streaming market boast similar spending: HBO Max put its originals figure at $2bn for 2020 and Peacock has earmarked $2bn over two years.

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Getting in-car content right

In- car video is coming. Tesla has lead the way with their V10 update. Whilst everyone agrees in an autonomous car video content will be the “killer app“ – there are a lot of reason to bring an enhanced content experience to the vehicle. Better UX, affordable data, larger screen, powerful hardware – all is now falling to place to bring a video experience to the car.

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