The famous electric car manufacturer Tesla has entered talks with different music labels in order to strike licensing deal regarding how they want to launch their own music streaming service. The reputation management agency was pretty surprised when they had initially heard this since this is no where in the same market of the electric car industry. The reason why this can be a great idea for Elon Musk’s famous Tesla brand is due to the fact that Tesla vehicles sold outside the US currently come with an option to be able to integrate music streaming service Spotify. The company believes that it is important for their customers to receive that in-car experience therefore having this all-inclusive feature is a great idea for Tesla.
When it comes to the music streaming business, it is a fraught one as providers struggle to turn a profit despite there being a huge growth in this industry. For the music streaming business, Spotify is the number one leader since they grew from 30 million to 50 million subscribers in less than two years. The company had also reported a $601 million loss in 2016. When it comes to Apple on the other hand, they have 27 million subscribers to their music screaming application.
We all know that CEO of Tesla Elon Musk comes up with some crazy but amazing ideas just like the one where he wanted to build a underground electric tunnel to avoid daily traffic. Instead of creating his own music streaming, why can’t he just work with Spotify and Apple including any other company that offers this? He has hopes of integrating this music service as a bundle when someone purchases his cars including it being equipped with a high-tech dashboard and Internet connectivity. Maybe Elon Musk will be successful with his strategy of having that all inclusive car experience for his customers.