Music industry sources say the carmaker has had talks with all of the major labels about licensing a proprietary music service that would come bundled with its cars, which already come equipped with a high-tech dashboard and internet connectivity. Label sources aren’t clear about the full scope of Tesla’s ambitions, but believe it is interested in offering multiple tiers of service, starting with a Pandora-like web radio offering. The bigger question: Why doesn’t Tesla simply integrate existing services, like Spotify or Apple Music, into all of its cars from the start — especially since Tesla already does a deal with Spotify for Teslas sold outside the U.S.? “We believe it’s important to have an exceptional in-car experience so our customers can listen to the music they want from whatever source they choose,” a Tesla spokesperson said. “Our goal is to simply achieve maximum happiness for our customers.”
The idea of Tesla creating its own streaming music service is somewhat confusing since it there are many streaming services that Tesla could possibly work with to integrate into their cars (ie., Spotify, Pandora, Apple CarPlay, etc). However, perhaps Tesla has been facing resistance or major complications in getting the right agreements with these companies and they feel like they need to create their own service to ensure their owners can get a top-notch music service. It also can pave the way for Tesla to sell other media (like movies) in the future as their cars go fully autonomous.