Written by / Zhang Ou
Edited / Meng for
Design / Shi Yuchao
Friends who love music must be very familiar with spotify, a well-known music streaming service platform. On February 22, local time, Spotify announced that its first hardware product, the "Car Thing" car smart player, will be the first to be sold in the United States, priced at $89.99.
Back in April 2021, Spotify announced the company's long-simmering in-car player plans; in October of the same year, it opened up a limited edition of Car Thing to Spotify premium users; after a period of testing, this whimsical small in-car device was finally officially coming.
The physicalization of mobile apps
The thin and light Car Thing display is similar to a dedicated GPS, which can be mounted on a dashboard, vents, or a car's CD player slot, where users pick up music by using a touchscreen, twist, or "Hey Spotify" voice control mode.
"We found a lot of questions about people listening to music in the car during the initial phase of our research, and for many users, how they wantEd Car Thing to help them improve their experience of listening to music in the car. After all, there are a lot of people enjoying music through Spotify in their cars. Spotify wrote in the announcement.
Spotify's current catalog of all 82 million songs, including more than 3.6 million podcasts, can be found on Car Thing.
Car Thing's microphones are said to use noise suppression, through an "adaptive interference cancellation technology" that can adjust and optimize the sound quality in the driving environment.
However, users need to connect it to the car stereo with Bluetooth or a data cable, and they must also ensure that there is a 12V power outlet. It has no internal storage or user interface to download other apps – just Spotify. This reminds people of the days when they were students who held MP3s every day.
Crowded market for in-vehicle equipment
Although Car Thing was Spotify's first hardware offering, Spotify isn't the only company to launch an in-vehicle device for entertainment services. Today, the two main players in this market are Apple CarPlay and Google's Android Auto.
Apple said in 2021 that more than 80 percent of new cars sold globally supportEd by CarPlay, which equates to about 600 new models, including Volkswagen, BMW, Chrysler and Toyota, which has been holding out for a long time and still has to compromise.
The same is true of Android Auto, where most automakers sell at least one android-compatible model.
CarPlay and Android Auto are at the heart of the market, thanks to the large coverage of technology leaders, and the diversification of applications is indispensable. Users can easily access maps, phones, messages, voice assistants, and various required features including Spotify.
Spotify App on Android Auto display
This has also become one of the main considerations for many consumers when buying a new car. According to market research firm Strategy Analytics, 23 percent of new car buyers in the U.S. say they "must have" CarPlay, and 56 percent are "interested" in CarPlay when buying a new car.
Of course, neither CarPlay nor Android Auto are currently car operating systems.
Mark Fitzgerald, an analyst at The Company for Strategic Analytics, said it was actually mobile phone software. At the end of the day, it's like using a car display as an external display for your phone. And many users believe that this is exactly what they need.
In addition to the two seemingly insurmountable hills at the moment, Spotify also faces competition from Amazon — Amazon launched the Echo Auto, a smart device in late 2018 that can access the Alexa voice assistant in the car for less than $50, and the goal is also to bring modern features to older cars — it's not just music, users can use navigation, make calls, and more than just music, users can use navigation, make calls, and more with quick voice commands.
Number of Vehicles Supporting CarPlay and Android Auto (Data IHS)
Hit the stone with a pebble
In this day and age, powerful smart devices are everywhere. For apple carplay or Android Auto users who have long been accustomed to being able to offer a variety of apps to download and operate, the deadly limitations of Car Thing make it a natural niche car audio device.
If you're a Spotify premium user who drives a lot, Car Thing is a great product that helps you focus on the road and minimize the amount of time you spend fiddling with your phone; it's also a good option if you have an old car that uses a Bluetooth adapter. But overall, it's still an over-engineered solution, after all, buy a car phone stand, the phone can do the same job, or even more.
So aside from the music-loving Spotify die-hard users and car owners whose cars lack a built-in infotainment system, who would be willing to pay for such a product that even has a low profile of "appearance" to the point of no creativity?
At present, car companies are transforming into technology companies, and major car companies such as Ford, General Motors, Toyota and Stallantis have reached cooperation agreements with Google to build the Android operating system as the basic software for entertainment devices;
Apple is upgrading CarPlay to expand the range of ios systems in cars, and future advanced versions will be able to control air conditioning, adjust seats and access speedometers, etc.
Amazon's voice assistant Alexa first partnered with BMW and GM in 2018, and since then, more automakers, including Audi, Jeep and Land Rover, have all configured it. With the built-in Alexa, drivers can remotely lock or unlock car doors, turn on the engine, or check the amount of fuel through a smart speaker in their home. Similarly, Alexa in the car can monitor the air conditioning in the home, turn on and off lights, provide weather information, and help users buy products on Amazon.
Cars have spent a long time on the road of intelligence, and the Spotify Car Thing that appeared at this time has just stood at the starting line, which is more suitable for another way than catching up.
Global Music Streaming Platform Subscriber Share (2021)
Of course, Spotify accounts for 32% of the global music streaming market share, with a whopping 365 million monthly active users, of which more than 165 million monthly users are Spotify premium subscribers. Although the usability of Car Thing has improved at a slow pace at this time and whether it will be rolled out to other international markets is unknown, entering the production hardware space is undoubtedly an important strategic component of Spotify's increased profits.
Absolute market share and higher user growth outside the U.S. continue to add optimism to the outlook for hardware that now looks less optimistic. If you want to target niche markets and ultimately succeed, it's cool isn't it?