- BMW iX3 needs a subscription to use its 360-degree camera.
- Driving Assist Pro also requires a monthly subscription.
- Company admits heated seat subscriptions were a mistake.
BMW learned a hard lesson in 2022 when it tried to charge a subscription fee for heated seats, prompting swift and widespread backlash. While the company walked that decision back within a year, it’s still firmly committed to the broader idea of subscription-based features.
In the case of the all-new iX3, BMW will ask its customers to subscribe to features such as the 360-degree camera and the Driving Assistant Pro package, which includes hands-free driving on highways and semi-autonomous features for urban settings, much like Tesla’s approach with its own systems nowadays.
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This comes even as BMW concedes that offering heated seats as a subscription option was a mistake, and the fact that all new iX3s will have the hardware for advanced-driving assistance systems and the 360-degree camera.
Other features, such as real-time traffic updates and adaptive suspension, are also sold as subscriptions depending on the market. In Australia, adaptive suspension can be activated after purchase for A$29 (US$20) per month, with a one-month free trial to get drivers acquainted.
Why BMW Still Believes in Subscriptions
“The criticism we got was from the seat heating, so this was probably not the best way to start with it,” BMW head of product communications Alexandra Landers told Australia’s Drive. “However, we decided for the technology, everything is on board, but for the additional other systems, we also have costs for running. You have cloud use, and that is cost.”
“If you use it, we have to pay for it. It’s not everything important [to every customer], but the technology is important [to have in all vehicles], and we still believe in the option offer structure that you do not have to decide from the start if you want this ADAS [safety] system.”
Landers added that having subscriptions can be useful for owners who may change their mind about having a certain feature during their ownership. “For example, if they’re sitting in a traffic jam, and think ‘Oh, maybe I should have bought [ADAS] two years ago’. And then they can, you know, add it online.”
BMW will tie downloadable over-the-air software updates to its subscriptions. For example, as ADAS systems are improved, updates could be introduced to paying subscribers.
Some features, however, will reach certain regions before others. BMW confirmed that semi-autonomous driving functions will first roll out in Germany before expanding to other markets.
Performance Stays Unlocked
That said, BMW has ruled out certain types of paid upgrades entirely. Customers won’t be able to unlock more power or battery range through remote updates, as the automaker believes base vehicles should deliver full performance from the start.
“Because this is the thing we say, you buy a car with maximum power, and we are not a tuner. You just felt that 345 kilowatt (463hp), so why restrict it and then have [customers] pay [more] for it? That didn’t make sense for us as an offer strategy.”
Will Buyers Push Back?
It remains to be seen how customers will respond to the subscription offerings for the latest BMW models, particularly the new iX3. While locking the advanced semi-autonomous driving system behind a paywall isn’t unique in the industry, as Tesla does with its supervised Full-Self Driving suite, requiring a subscription for features like a 360-degree camera, is bound to be controversial.
