Tesla is reportedly trying to build its own music streaming service

Tesla is reportedly trying to build its own music streaming serviceTesla has continued to one-up its achievements as a successful proprietor of safe, green and increasingly autonomous electric vehicles. But it might venture out from the niche its carved for a much more saturated market: Streaming audio. Music industry sources told Recode that Tesla has been in talks with major labels to create a proprietary service that it would bundle with its cars.

However ready Tesla might be to jump headfirst into the plan is unknown, as are any details beyond possibly offering multiple tiers of service beginning with a Pandora-style online radio. Without more than these rumors, though, it's hard to see why Tesla would jump into a saturated market when it could just license Spotify or Apple Music.

Starting a whole new side business seems foolish, especially in a niche where a service like Tidal can have major financial backing and artist exclusives yet still struggle to stay afloat. Or where Pandora, the first huge internet radio service, just launched its streaming on-demand service back in March to tepid applause. As Recode points out, Tesla's new offering would have an uphill battle against the current titans: last they checked, Spotify claimed to have 50 million subscribers, while Apple Music alleged its userbase at 27 million.

Source: Engadget

Tags: automobiles

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