“In the not-too-distant future, a car with a radio that receives only AM or FM will qualify as an antique.” So says a WSJ article covering a new study released by Deloitte on Generation Y’s automotive buying power and preferences.
The study finds that 59% of 19 to 31 year olds place in-car connectivity as the top interior feature when shopping for a new car. This year one out of every four persons in that age group will buy a new car, almost half of them will purchase new or used in the next two years.
That’s driving heavy interest in tuners and platforms that are app ready and adaptable to safe car use. Pandora, TuneIn, iHeartRadio, NPR and others are working with auto manufacturers to place their apps in the cars, as is SiriusXM. Leading the way, Pandora has deals in place with almost 2 dozen auto manufacturers already.
I think there’s a short term and long term view to all of this and long term my money is on all-in aggregators like TuneIn who provide access to anyone who wants to be listed in their directory. If you are a car manufacturer, isn’t that what you would want to offer? I’m thinking that’s what buyers will want to buy.