Consumers Want Advanced In-Car Entertainment Systems That Automakers Can Monetize With Ads

As automobiles become more automated, consumers are looking for more from their car-entertainment  systems. 

A majority of consumers, 60%, said that infotainment systems play a  critical role in the decision they will make about which cars they want to buy or lease, according to a new report from Gracenote, the content data unit of Nielsen.

These days the Internet and WiFi carry a plethora of content options. A lot of current car systems tie into smartphones to bring news, music, talk and sports to vehicles.

Using current technologies, 58% of U.S. consumers said they listen to AM or FM radio  often or always while in their cars.

According to the report, entitled "In the Driver's Seat," based on a survey of 4,000 consumers in the U.S., Germany, Japan and South Korea, 94% would consider switching from their smartphone for in-car entertainment, to an in-dash system if the offering was improved. 

Gracenote says that this switch would create opportunities for automakers to monetize those entertainment systems through in-car advertising, referrals and analytic data.

The importance of in-vehicle infotainment systems will also increase as the use of video grows, both for passengers and drivers while parked, the report said. At this point, having in-vehicle video available for passengers was important to 47% of those surveyed.

“Consumers want to easily navigate the wealth of available audio, video and sports content from various sources in their cars – and automakers are responding,” said Trent Wheeler, Head of Product Innovation at Gracenote. “By delivering personalized entertainment experiences through their native infotainment systems, car brands can build new relationships with their customers and ultimately, jumpstart recurring revenue streams.”

The report found that 82% of drivers said they would be interested in curated entertainment packages. Making it easier to discover available content would also be appealing since only 45% of those responding said they know exactly what they want to listen to when they start a trip.

The survey also found that 67% of vehicle owners want their in-car infotainment system to organize available content regardless of whether it’s coming via AM or FM radio, podcast or other forms of streaming audio.

Personalized content recommended based on listening behavior was something 63% of those responding said they would want.

The survey found that 51% want access to summaries and alerts for news, live sports scores and stats, while 28% want access to more news and talk content in their vehicles. 

The report concludes that the desire for next-level infotainment among vehicle owners is unmistakable. But simply replicating the capabilities of a mobile phone within a car's in-dash stream won’t get consumers to pay a premium.

“For OEMs, the introduction of next-gen systems opens the doors to everything from in-car ad placements to referral revenue from linked services to licensing deals with advertisers for customer analytics data. There is also the potential for increased conversion and retention for OEM-driven subscription packages that fulfill the desires of consumers looking for entirely unique and personalized media experiences,” the report said.

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DirecTV said it made a deal with AI company Glance which will bring personalized interactive experiences to what they call “idle” TV screens.

The experiences seem to go beyond pause ads.

The companies said that viewers will be able to get information about travel, health and other subjects on their TV screens, get real time weather and sports scores and shop for products. 

"With Glance AI, TV screensavers become a smart content discovery, personalization, and AI-commerce experience", said Vikash Sharma, senior VP, Product Marketing at DirecTV. "DirecTV audiences who stream TV through our Gemini devices will now get the opportunity to reimagine their interactions with their TV screen, with personalized content, entertainment, news, and shopping recommendations in real time."

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Netflix and Spotify announced that early next year podcasts from Spotify Studios and The Ringer will be coming to Netflix.

These days many of the most popular podcasts have video and YouTube is the most popular podcast distribution platform.

“At Netflix, we’re always looking for new ways to entertain our members, wherever and however they want to watch,” said Lauren Smith, Netflix VP of Content Licensing and Programming Strategy. “As video podcasts continue to grow in popularity, our partnership with Spotify allows us to bring full video versions of these top shows to both Netflix and Spotify audiences. From pop culture and lifestyle to true crime and sports, this curated selection of video podcasts adds fresh voices and new perspectives to Netflix, making our entertainment lineup more exciting than ever.”

The Spotify shows coming to Netflix include The Bill Simmons Podcast, The Rewatchables, The Big Picture, Conspiracy Theories and Serial Killers.

The companies said the arrangement would bring podcast content to a bigger audience.

“This partnership marks a new chapter for podcasting,” said Roman Wasenmüller, VP and head of podcasts at Spotify. “Together with Netflix, we’re expanding discovery, helping creators reach new audiences, and giving fans around the world the chance to experience the stories they love and uncover favorites they never expected. This offers more choice to creators and unlocks a completely new distribution opportunity.”