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Tesla in talks to start its own music streaming service

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Much to the bemusement of Tesla owners, music streamers, and everyone, really, Tesla has reportedly engaged in talks with music labels in hopes to start a music streaming service of its own.

Music industry insiders have said that Tesla has approached every major label with the expressed purpose of licensing a proprietary music streaming service to be integrated into their vehicles. Insiders have also indicated that a tiered service model would be employed - the lowest tier being a Pandora-esque web radio option. Beyond this, music labels are unsure of Tesla's full intentions, specifically whether such a service may be offered on other platforms, be they mobile or computer-based.

The electric car manufacturer has an existing deal in place with Spotify for use in non-U.S vehicles - a partnership that would almost certainly be threatened by the creation of a proprietary music service - though Tesla insists the move is about customer choice and satisfaction.


Spotify currently boasts 50 million users while Apple Music has earned a respectable 27 million, taking a distant second-place spot. These figures, coupled with the growing trend of drivers using their phones as entertainment/GPS systems, make it hard to see why Tesla wouldn't opt for a licensing deal with one of the two, considering the steep up-hill battle it would face. Then again, Elon Musk hasn't shown much of a penchant for taking the safe bet, a strategy that has certainly paid off for him in the past.

source: Recode

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