EV automaker reportedly in talks with record labels
Tesla may create its own music-streaming service, according to a new report from Bloomberg. Citing Recode, the report indicates that the California-based EV automaker is in talks with record labels to start a service similar to Spotify. However, it’s not clear whether Tesla will fully commit to such a service, according to a person familiar with the matter who spoke to Bloomberg anonymously. Music streaming services such as Spotify and Pandora have been pushing to get into the automotive space and are new competitors to traditional and satellite radio services.
Currently, Tesla offers Spotify in global markets like Europe and Australia, but in the U.S. and Canada, it only has Slacker. “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,” said a Tesla spokesperson in a statement. However, the spokesperson didn’t address the question of whether the automaker is working with record labels.
This isn’t the first time an automaker has hinted at creating its own media streaming service as LeEco and Faraday Future also had intentions to start a similar service. In addition to investing in automobiles, LeEco also has a smartphone and video streaming service business, but the Chinese company’s financial health casts doubt on its ability to enter the automotive space.