Music Streaming Service: The Next Frontier for Tesla and Elon Musk

10 July 2017
By Sergey Bludov, SVP Media & Entertainment

Music-Streaming-Service-The-Next-Frontier-for-Tesla-and-Elon-Musk

It appears that Elon Musk wants to capitalize on the impressive major label revenue growth derived from streaming by developing a proprietary music service to integrate into Tesla’s vehicles.

During a shareholders meeting earlier this month, Musk was critical of existing streaming algorithms and the quality of their playlists, promising to build a music service feature for his company’s vehicles that would be capable of suggesting “the music you want to listen to. “Now, unnamed music industry sources have confirmed that Tesla has already been in talks with all the major record labels about licensing music to use in its own streaming service.

At this point, the scope of Tesla’s offering remains unclear, but it does seem that the company plans to integrate its own proprietary music service into its cars, as opposed to just providing integration with Spotify or another existing option. One possibility is that the company will initially offer a Pandora-like web radio streaming feature, taking advantage of the high-tech dashboard and full internet connectivity found in Tesla vehicles. Considering the fact that the company’s sales have increased significantly in recent times, with more than 100,000 cars sold last January and 400,000 preorders for the upcoming Model 3, record labels certainly have a compelling reason to get involved in the innovative firm’s jump into the world of music streaming services.

Even though it’s not yet official, Musk’s decision to launch a music streaming service may come as a bit of a surprise, especially considering that the company already has a deal with Spotify in which it provides voice control access to the streaming service in its cars. And last September, sources close to Tesla said it would soon be launching Spotify integration into its vehicles in the U.S.

However, Musk has never been one to shy away from innovations or challenges, to put it mildly, and the fact that he may be embarking on launching his own streaming music service is exciting news. Known for his childlike curiosity and inventive enterprises, Musk’s venture into streaming is likely to be significantly different than existing services, thereby cementing its potential for success in the near future.

I’m sure labels are lined-up to cut the deal with Musk…what do you think?


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