We had to figure it was only matter of time that a carmaker would consider the revenue potential of in-car entertainment systems.
General Motors looks like it might be one of the first to try and cash in on the idea.
GM CEO Dan Akerson said the partnership with AT&T to add 4G connectivity by 2015 for streaming videos to back -seat passengers could include a couple of revenue generating opportunities, reports Left Lane News.
The automotive industry site reports that Akerson said GM will collect a $20 fee from AT& T for every connected vehicle it sells and the carmaker will also split the revenue generated from shared services.
The ability to stream 4G technology into a car, which will allow for faster data mobile speeds for many in-vehicle features, presents a number of new business opportunities, said the CEO.
“With a 4G pipe into a car, you can change the business model almost entirely,” explained Akerson, reports Left Lane. “You may be able to have a real revenue generating opportunity into the car with – when you come up for example, what happens when the logo shows on your screen and its brought to you by Allstate?”
While GM doesn’t appear to have any specific plans tied to advertising on their in-car entertainment components just yet, Akerson’s comments suggest that the idea might already in development.
Then again, it shouldn’t come as a surprise considering how ads for everything from insurance to soft drinks now permeate just about every digital device we own in some form or fashion.
However, the idea of a Pepsi ad popping up in the back-seat of your Buick Enclave does present an interesting dynamic for drivers and passengers alike who often feel that they are already bombarded with too much advertising.
What do you think – should carmakers like GM allow companies to stream ads into vehicles?
Photo Credit: Left Lane News