The connected car revolution is about to replace century old in-car broadcast radio by personalized, on-demand music streaming services from the likes of Pandora and Spotify. The fragmented nature of the connected automotive infotainment landscape makes it difficult for music service providers to integrate their applications cost-effectively across a large number of car brands and models. However, this is about to change as smartphone integration standards such as MirrorLink, Apple’s CarPlay, and Google’s Open Automotive Alliance initiative are gathering momentum with Google and Apple recently having launched their own music streaming services.
At the same time, the long term future of digital music broadcast technologies such as satellite and HD Radio in the US and DAB/DAB+ standards in Europe looks bleak, although many US car OEMS have adopted SiriusXM’s satellite offer or HD Radio technologies. Despite the runaway success of in-car music streaming services, monetization and sustainable business models remain elusive as consumers have come to expect seamless access to their digital lifestyles across all devices and use cases as a basic requirement.