Tag Archives: microtransactions

Burned By Its Heated Seat Subscription Plan, BMW Changes Paywall Strategy

In 2020, BMW introduced the BMW Operating System 7, which included the BMW ConnectedDrive Store. This online store allowed BMW owners to download and activate additional features and capabilities for their cars. However, BMW limited certain features, such as heated seats, to specific countries, which caused controversy.

BMW’s approach of using microtransactions and paywalled features as a revenue stream is not unique to the company. Tesla also faced criticism for initially limiting battery capacity and requiring customers to pay extra to unlock full performance through a software update. Volkswagen has also hinted at potentially placing its driverless car feature behind a subscription paywall. While recent events suggest that customer backlash may deter automakers from continuing such practices, the industry may still move towards a future where microtransactions for “connected” cars become common.