The pace of change in software development is incredibly fast, and it’s becoming increasingly complex. As cars become more software-focused, the need to update car software regularly will increase. It will become as natural as updating software on a smartphone. This need will be even more acute in in-vehicle infotainment (IVI) and in-car entertainment, which are growing in influence on purchasing decisions. In this blog, I’ll outline what this means in practice.
This is the sixth part of a series of blog posts we’re publishing over the next few weeks on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to our Automotive Newsletter to be notified when the next instalment of the series is available. A PDF version of this blog can be downloaded here.
- In-vehicle video (IVI) is an untapped market that will grow rapidly, thanks to automotive trends such as Electric Vehicle (EV) charging, increased ridesharing and the arrival of fully autonomous vehicles.
- An approach that embraces IP, cloud and software allows OEMs to build an infotainment strategy that decouples the country of manufacture from the service delivery agreement.
- The fragmented SVOD market and simmering rivalries between content providers makes delivering a flexible, integrated service a significant challenge for the automotive industry.
- ACCESS has removed all the stumbling blocks around content deals, so that one single service can be provided across all OEM markets. ACCESS functions as a one-stop shop for acquiring content rights for TV, VOD, audio, games and apps for global usage.
- Delivered as either a managed or co-managed platform, an OEM’s in-house development team is relieved of the burden of having to maintain continual updates to ensure BYOD device compatibility, access security and ongoing content agreements.
This is the fifth part of a series of blog posts we’re publishing over the next few weeks on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to The Multiscreen Blog to be notified when the next instalment of the series is available. A PDF version of this blog can be downloaded here.
- The growing adoption of Rear Seat Entertainment across luxury, MPVs and taxi/ ridesharing will accelerate as AV enters the market.
- Delivering new video services will take advantage of a combination of IP, cloud and software technologies along with cellular networks to meet consumer demand.
- Innovative middleware and service platforms such as ACCESS Twine™ for Car help OEMs overcome technical
and IAM hurdles through extensive support for key operating systems, media sharing protocols and security controls.
- Creating the foundation for video-based services today will help progressive OEMs prepare for wider adoption through BYOD apps and cloud / software updates.
This is the second part of a series of blog posts we’re publishing over the next few months on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to The Multiscreen Blog to be notified when the next instalment of the series is available. A PDF version of this blog can be downloaded here.
- IVI and connectivity are key buying criteria (especially for millennials) that will grow with the arrival of autonomous vehicles.
- IVI and linked mobile apps offer powerful two-way communication for OEMs to finally engage directly with vehicle owners that transcend the dealer network.
- Embracing digital services – such as an in-car streaming solutions – will allow for new types of engagements and revenue streams.
- A dual strategy of supporting key mobile device brands – such as Google and Apple – while still retaining control of the in-vehicle experience offers the most benefits for the automotive industry.
- This approach will allow the automotive industry to capitalise on new partnerships with content and service providers while strengthening customer engagement and brand loyalty.
For most consumers, purchasing a car is the second largest capital outlay after buying a house.
There are a host of reasons that people choose the car they buy, ranging from ‘curb appeal’ to what the brand means to the driver. Does it feel special sitting in the driver’s seat? Will the kids love sitting in the back? Does it come with all the extras I want at the right price? Of course, all these factors matter, but increasingly the in-car entertainment system can be the decider. So, getting the IVI system right really matters for OEMs.
Although increasing showroom sales are critical, a connected OEM branded In-Vehicle-Infotainment (IVI) system also helps to build longer-term relationships with the driver and passenger along with generating new, recurring revenue streams. At the same time, it enables the OEM to define the in-car experience rather than ceding control to Silicon Valley media tech giants. All of which means that the in-car entertainment experience has never mattered so much to people in cars and those that make them.
Capturing the market
Research companies report that in-vehicle infotainment and connectivity capabilities are becoming a major requirement; according to 2016 IHS Automotive research (which focused on the US market), up to 40% of millennials said they wanted in-car IVI based apps that ‘help to enhance the driving experience.’ Additionally, Gartner L2 reported in 2016 that 40% of surveyed consumers would switch their car brand for more connectivity, up from 20% in 2014. As autonomous vehicles start to emerge – freeing the driver to participate in more activities – IVI will take on an ever more important role in the vehicle purchasing decision making process.
The connected age
The overall vehicle experience has evolved in recent years through the arrival of more advanced in-vehicle technologies. The simple radio and cassette decks from the 1970’s have been updated in modern vehicles with cellular enabled in-car Wi-Fi offering streaming audio, GPS-based location services, and for rear passengers, the option of live and on-demand video.
But IVI is more than just a consumer benefit. With the combination of touchscreen and voice-based interface, on-board software and cellular communications; automotive brands will finally have a powerful touchpoint direct to the car owner. This two-way interaction goes beyond the dealer network relationship and allows brands to engage directly with end-customers to share information, collate data and provide additional value-added services.
The OEMs can increase the possibility of success in IVI by working with telcos to create multiple data plans to cater for differing levels of content access. Additionally, new content and data models in which certain services are already included in the cost of the car could be interesting and popular in some markets.
According to the 2018 Deloitte Global Automotive Consumer Study, between 50% and 63% of car owners would be interested in additional connected services provided by car manufacturers. The list includes maintenance updates and vehicle health reporting; updates regarding traffic congestion and suggested alternate routes; and access to parking information, including availability, booking and payment. The same study suggests that 59% of consumers were not contacted by the manufacturer after purchasing their vehicle.
Yet most new cars sold are still not equipped with a modern ‘connected’ IVI. Although this is changing, many existing car owners and passengers still rely on bring-your-own-device (BYOD) offerings based on smartphones and tablets to broaden their in-car entertainment experience beyond the radio and CD player. This option is far from ideal; it suffers from intermittent connection, can be poorly integrated with the car’s entertainment systems and does not provide experiences tailored to individual journeys. It is important when specifying next-generation IVI that OEMs and Tier-1s look for integrated BYOD solutions that provide greater benefits for both automotive brands and the consumer.
Developing integrated apps that can span both IVI and BYOD is critical. Tighter integration between vehicle functions, such as satellite navigation, cellular Wi-Fi, audio systems and rear passengers’ screens, enables advanced in-vehicle features such as instrument cluster integration and rear seat casting to be much more streamlined for the enjoyment of all car occupants.
By offering value-added features, brands can retain control of the user experience through car owners obtaining a superior experience by installing the OEM’s IVI equivalent app on BYOD devices. This dual strategy offers brands a way to keep direct contact with owners as vehicles are resold into the secondary markets, especially if the sale is outside the dealer network.
At the same time, this model also builds stronger relationships and greater loyalty amongst the next generation of car buyers. Offering a branded, value-added app tied to each vehicle creates a direct touch communication path which is directly in the control of the OEM. This means the OEM can reach every car owner, globally, with localised content.
Vehicle app stores
The opportunity to have a set of apps that not only span multiple models and devices but can also be made available from a dedicated vehicle app store, represents an innovation that car brands can use to avoid a dependence on either the Google or Apple app store. The combination of the manufacturer branded IVI alongside integrated branded apps on BYOD, provides the ability to deliver additional value-added services that are both simplified and more reliable.
Alongside popular streamed music applications such as Pandora and Spotify, brands can now look at offering additional content services such as Video-on-Demand (VOD), live TV and premium content that can be delivered as part of a monthly subscription or within an advertising supported model. Global brands such as Amazon, Hulu and Netflix – along with regional champions such as iROKOtv in Nigeria, Hotstar in India and ClaroVideo in Brazil – are all vying for subscribers and are looking at the in-car market as an intact space for business growth.
A world of content
It will be vital for OEMs to create content propositions which entail both large international SVOD and streaming services with local broadcaster content across several countries. ACCESS has built a substantial partner portfolio for automotive, which allows for a mix of content in a white-label product. This allows for an OEM to hold the customer relationship across all its facets.
Are you ready?
By 2040, there will be over 2 billion cars in use and it is likely that autonomous vehicles will make up most new car sales. Brands that can deliver true value-added benefits to drivers and passengers will be able to capitalise on an untapped market. Those that don’t will be letting a great opportunity slip through their fingers.
The car industry is embracing next generation IVI through standard-based application and connectivity platforms. Leading this shift is ACCESS Twine™ for Car (Twine4Car), which enables automotive OEMs to provide branded Infotainment services on the car head-unit (HU) and rear-seat entertainment (RSE) displays. With software development kits for Android, iOS, QNX and Linux, OEMs can now also extend their branded IVI experience to customer brought in devices (BYOD) to form a seamless offering. Twine4Car spans the gap between the automotive and the content industries by enabling a content portfolio, helping to increase the safety, the comfort, and the flexibility of content consumption for drivers and passengers. Through our extensive contacts and experience, ACCESS can also act as the single point of contact for the OEM, engaging with app store providers, broadcasters, media owners and the OEM’s Tier-1 suppliers to enable the integration and provisioning of state-of-the-art content and streaming services.
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This is the first of our Automotive focussed blogs on The Multiscreen Blog. These blogs will discuss current and upcoming trends, as the car becomes another channel for connected entertainment.
In the past, the purchase of a new car could also spell the end of the relationship between the manufacturer and the consumer if the vehicle was not going to be ‘dealer maintained’. However, the advent of connectivity in the car with the Internet of Things (IoT) and Bring-Your-Own-Device (BYOD) developments means that OEMs can now forge a closer bond with consumers.
The connected car era has enabled the vehicle to become a fully evolved ecosystem providing a richer user experience and a host of new product offerings such as advanced diagnostics, enhanced driving safety, voice recognition, automotive apps, regularly updated car firmware and rear seat entertainment. These new features are increasingly becoming integral in the buying process both for high end and midrange cars, and enable OEMs to increase monetization opportunities over the life span of the vehicle.
The consumer desire for increased connectivity can be partly attributed to the connected car’s ability to control cost by proactively addressing performance issues. For example, new services that allow easier identification of wear and tear ensure problems are easily addressed and solved. Receiving performance related insurance could help offer a fairer tariff system based on driver performance rather than age and ultimately ensure lower rates for many road users.
However, data has a bigger role to play in transforming the automotive industry. Data and analytics enable the car to automatically communicate levels of wear and tear, providing drivers with accurate information to share with mechanics without waiting for the compulsory car inspection. Efficiently aggregated and analysed, data can also help the industry to offer tailored advertising and media strategies. For example, a tyre company could advertise for its products directly via the head unit as soon as the car informs the driver that its tyres need changing. OEMs and Tier Ones have already shown their desire to protect this data through agreements on privacy and data security principles that regulate how automakers collect, use and share information.
Connectivity in the car will enable a greater range of services to become available. For example, rear-seat entertainment has moved from an OEM controlled experience to a more personalised one that integrates connected devices such as smartphones, tablets and more. This trend forecasts increased use of Bring-Your-Own-Device (BYOD) in the car and the possible advent of ‘All seat entertainment’. An immediate consequence of Internet access everywhere and increased media consumption on every connected device has led to what is referred to as the ‘multiscreen era’ in the entertainment industry. In the multiscreen world, consumers demand a seamless experience on every device in and out of the home, and now even in their car. This creates additional challenges for OEMs and Tier Ones as they look to safeguard content on billions of different screens across the globe.
We created the first mobile web browser in the 1980s for NTT DoCoMo and we have seen the market evolve to offer more connectivity on every screen, from smartphones to game consoles and smart TVs. For us, it was only a matter of time before entertainment pervaded every aspect of our lives, including our cars.
Yet, to enable consumers to get a seamless experience everywhere, OEMs and Tier 1s need solutions that bring the latest connected entertainment experiences to the vehicle. This is why we have developed a suite of software products for the automotive industry including ACCESS Twine™, a multiscreen management platform that provides this seamless experience on any device. Furthermore, the solution can be deployed by any OEM and Tier 1 without additional developments, and caters for both embedded screen and BYOD offerings. A complete solution for the automotive sector, ACCESS Twine provides OEMs with full control over branding and the in-car experience.
We live in the age of automation in which we can talk to our phones and remotely pilot drones. It’s high time that the car industry implemented solutions that enable vehicles to become smarter in order to play a leading role in the Internet of Things (IoT) revolution that is taking off right now.