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November 15, 2023 10:29 AM

The Impact Of Emerging Technologies In The Future Of In-car Entertainment

Introduction

In today's digital age, people are more tech-savvy than ever before. Smartphone usage has become more familiar, and most of us can effortlessly navigate complex interfaces with minimal guidance. This trend has significantly influenced expectations for an enhanced in-car entertainment system. Drivers and passengers now seek a seamless user experience that mirrors the familiarity of their devices (e.g. mobile phones). The in car entertainment industry has experienced significant growth recently, with projections indicating a market value of USD 21.5 billion by 2026 (Statista, 2020).

Emerging technologies such as digital assistants, augmented reality, seamless smartphone connectivity, rear-seat entertainment, and personalized experiences are crucial in transforming in-vehicle entertainment. This article will help you to understand how seamless connectivity and autonomous driving will shape the future of in-car entertainment.

Seamless Smartphone Connectivity and Advanced Technologies

Smart software with 4G/5G networks in cars, a powerful combination, is not just a technological advancement but a gateway to the future of in-car entertainment systems. The carmakers have already incorporated Android Automotive OS and Apple CarPlay with standardized integration of smartphones into the dashboard.

Brands are transforming in-car entertainment as the Human-Machine Interface (HMI) advances, and spike of content centric approach. AT&T is adding HBO Max to their in-car Wi-Fi, providing premium content to passengers. Similarly, popular entertainment platforms such as Prime Video and YouTube are becoming more available in an increasing number of vehicles, transforming travel time into a personalized entertainment session.  

Developing video apps for AAOS is challenging due to safety concerns. Developers should follow Google's design guidelines to ensure their apps are distraction-free and easy to use while driving. Entertainment brands like RTL, the German TV network, are already exploring this option with Toggo, a children's program powered by 3Ready that switches from video to audio mode automatically when driving.

3SS aims to provide a seamless in-car experience for passengers comparable to the comforts of their home. The 3Ready product framework has already incorporated YouTube and Zattoo stream APIs. The 3Ready Platform framework facilitates live TV streaming from Zattoo, seamlessly integrated into cars, enabling automakers to offer this service in Germany, Switzerland, and Austria.  

The Rise of Autonomous Driving: Implications for In-Car Entertainment

Over the past two decades, the idea of self-driving cars has become a reality rather than just a concept in science fiction. The United States, Europe, and China are closely monitoring the advancements in autonomous driving technology. According to McKinsey's sales projections, driving systems for highways under the L3 and L4 categories will likely be more widely available in the private passenger car market by 2025 in Europe and North America.  

What are the different levels of autonomous driving?

Autonomous driving is categorized into different levels, from Level 0 (no automation) to Level 5 (full automation). Level 3, also known as "conditional automation," involves the vehicle managing most aspects of driving, including monitoring the environment. The driver must be ready to take control at the system's request. With Level 4, or "high automation," the car can handle all driving tasks in certain conditions, and the driver isn't expected to take over.  

Man in a car experiencing different levels of driving automation, showcasing the future of in-car entertainment and technology
Source: https://www.synopsys.com/automotive/autonomous-driving-levels.html

Mercedes-Benz was the first Original Equipment Manufacturer (OEM) to receive approval for its Level 3 Drive Pilot system, not only in Germany from the Federal Motor Transport Authority (KBA), but also in Nevada and California. Following Mercedes-Benz's lead, BMW also achieved Level 3 approval for autonomous driving in Germany. This trend indicates that people will spend more time in the car while using autonomous driving. As we move towards higher levels of autonomous driving, the car's interior will transform into a space for work, relaxation, or entertainment. This shift presents a unique opportunity for carmakers to redefine the in-car experience. In a Level 3 or Level 4 vehicle, drivers could enjoy a movie, play video games, or even hold a video conference. This evolution makes it essential for carmakers to integrate advanced in-car entertainment systems that offer a wide range of services and features.  

Why is this relevant today?

Carmakers must maintain the pole position in this new world of opportunities. It's crucial to create value-adding services customers love without making them pay twice. While fully autonomous cars may still be a few years away, it's crucial for carmakers to start planning now. By understanding the potential changes in consumer behavior and preferences, they can design vehicles that meet future needs.  

In recent years, there have been attempts from car makers to introduce some features as subscriptions, which were previously available as base features. However, the customer needed more value perception. That's why it has become more crucial for automotive OEMs to bring value to their in-car entertainment so that drivers and passengers interact more with their cars. Otherwise, they will engage more with their personal devices (e.g. smartphone, table) while using autonomous driving.  

As a thought leader in this space, 3SS can assist carmakers in navigating this new landscape. By providing insights into consumer behavior and preferences, we can help carmakers develop in-car entertainment systems that not only enhance the driving experience but also build stronger relationships with their customers.

Enhance Future In-car entertainment system with 3Ready

The 3Ready product framework from 3SS provides solutions for in-car entertainment systems that support car makers in creating value. New car models are coming with larger screens and rear-seat entertainment.  

The 3Ready Product Platform provides an outstanding user experience. With its seamless integration of content from various sources, including live TV, on-demand video, and streaming services, 3Ready creates a perfect entertainment ecosystem. Car manufacturers can now captivate passengers with personalized recommendations, intelligent content discovery, and user-friendly interfaces, ensuring an unforgettable and engaging journey.  

3Ready empowers carmakers to create fully customized in-car entertainment interfaces that are not only user-friendly and brand-aligned, but also designed from the ground up to meet media variety and discoverability requirements. It can enable holistic content discovery with pre-integrated 3rd party content and metadata.  

Electric Vehicle buyers percetion for in-car entertainment
Source: McKinsey Center for Future Mobility Consumer Survey 2022

Approximately 25% of electric vehicle buyers willingly pay extra for in-car digital and connectivity offerings. Among these offerings, entertainment is the most sought-after feature. Interestingly, EV owners consider entertainment offerings only 8.3% less important than safety features. According to the American Driving Survey by the AAA Foundation for Traffic Safety, drivers spend an average of 60.2 minutes behind the wheel daily in 2022.  

This presents an opportunity for vehicle manufacturers to interact more with their customers. In-car entertainment can be an effective platform for communication with customers, leading to more effective marketing activities. Many automotive and technology experts suggest that in the future, there will be an increase in subscription-based in-car digital services, which could create additional recurring revenue streams.

Monetizing in-car entertainment with 3Ready

3Ready product framework transforms vehicle displays into a dynamic digital entertainment platform, enabling the monetization of car services. It enhances user convenience with context-based recommendations and premium sound quality, creating personalized experiences that customers are willing to pay for.

Woman in a car watching a video on a tablet, illustrating the potential for monetizing in-car entertainment experiences


We emphasize the use of negative space to craft ads that are visually appealing and non-intrusive, ensuring a positive user experience. 3Ready enable car markers to deliver targeted promotions from their partners directly to the car occupants, focusing on relevance and engagement without being disruptive. For instance, as a vehicle enters a certain radius of a gas station, petroleum companies can run targeted ads for that location, prompting drivers with timely offers. Similarly, if occupants are watching cooking videos on the in-car entertainment system, nearby supermarkets could present ads for ingredients, turning inspiration into immediate action. These context-aware promotions enrich the driving experience with convenience and personalized value.

If you struggle to create and deliver additional value to power your future subscription business? Let us guide you in launching, managing, and scaling personalized, content-driven car services that truly resonate with your audience. Don't miss out on the opportunity to differentiate your offerings – book a meeting now for a live demo of 3Ready and see the future of in-car entertainment in action: BOOK MEETING

Conclusion

As autonomous driving expands, in-car entertainment will be a primary way to add value, enhance loyalty, and create new revenue streams. The most innovative and personalized experiences will have an advantage as the market evolves. Automakers must think beyond traditional infotainment for the future driver and passenger experience.