BMW, the German luxury carmaker, has decided to abandon its controversial plan to charge a monthly fee for heated seats in some of its models. The company faced a backlash from customers and media outlets, who accused it of being greedy and unfair.
The subscription service was part of BMW’s Digital Key Plus program, which allows customers to unlock and start their cars with their iPhones. The program was launched in the US in August 2023, and was expected to roll out in other markets soon. Customers who opted for the program would have to pay $80 per month to activate the heated seats feature, even though the hardware was already installed in the cars.
BMW said it was trying to provide an extra service by allowing customers to activate the feature later, if they wanted to. However, many customers were not happy with the idea of paying extra for something they already owned. Some compared it to buying a TV and then having to pay extra to use the remote control. Others said it was a classic example of a company trying to squeeze more money out of its customers.
BMW also faced criticism from consumer advocates and media outlets, who questioned the legality and ethics of the subscription service. Some argued that BMW was violating the warranty and consumer rights laws by disabling a feature that was part of the original purchase. Others said that BMW was damaging its brand reputation and customer loyalty by alienating its customers.
On September 7, 2023, BMW made an announcement stating the cancellation of its heated seats subscription service. The company also assured customers who had already made payments for the service that they would receive a refund. This information was revealed by Pieter Nota, a BMW board member responsible for sales and marketing, during an interview with Autocar at the IAA Mobility conference in Munich. Nota explained that the heated seats subscription was part of the automaker’s wider exploration of microtransactions, but it did not yield the desired success.
“We thought that we would provide an extra service to the customer by offering the chance to activate that later, but the user acceptance isn’t that high,” Nota told Autocar. “People feel that they paid double – which was actually not true, but perception is reality, I always say. So that was the reason we stopped that.”
People initially became aware of BMW’s attempt to restrict access to heated seats through a payment system when the feature started appearing in the company’s digital stores across different countries. The cost for a monthly subscription to enjoy heated front seats was approximately $18, with additional options available for yearly ($180), three-year ($300), or “unlimited” access ($415).
BMW’s heated seat subscription plan was an example of how carmakers are trying to monetize software features in their vehicles, as cars become more connected and digitalized. However, as this case shows, not all features are suitable for subscription models, and customers may not be willing to pay for them. Carmakers will have to be careful about how they implement such services, and ensure that they are transparent and fair to their customers.
Relevant articles:
- BMW drops plan to charge a monthly fee for heated seats, The Verge, Sep 7, 2023
- BMW Has Stopped Its Subscription Service For Heated Seats After Widespread Backlash, Carscoops, Sep 8, 2023
- Burned By Its Heated Seat Subscription Plan, BMW Changes Paywall Strategy, MSN, Sep 8, 2023
- Dodgy BMW Heated Seat Deal Given Bums Rush, Channel News, Sep 8, 202