Summary
- Tesla has an amended agreement with Slacker for the availability of LiveOne in its vehicles
- The agreement takes effect on October 1, 2024
- LiveOne 2.0 is launched for subscribers to access music on all devices
- Tesla will no longer subsidize LiveOne products for customers as of December 1, 2024
- LiveOne CEO believes the partnership will drive growth and increase revenue streams
Article
Tesla is making changes to the availability of LiveOne, a service powered by Slacker, as the company has announced an amended agreement with the automaker. LiveOne is a streaming platform integrated into Tesla vehicles that houses Slacker, a popular radio option for owners. The amended partnership with Tesla includes key highlights such as replacing the streaming button with LiveOne in perpetuity, launching LiveOne 2.0 for access to music on all devices, allowing subscribers to convert to premium services, potentially increasing Average Revenue Per User (ARPU) by 3x, discontinuing Tesla’s subsidy of LiveOne products for some customers as of December 1, 2024, and offering discounted LiveOne music packages to all Tesla customers.
Tesla has informed owners that LiveOne powered by Slacker Radio will no longer be included with Premium Connectivity subscriptions starting December 1, 2024. Owners who wish to continue listening to LiveOne’s curated stations on their Tesla and other devices can subscribe by following the provided steps. LiveOne CEO Robert Ellin commented on the amended partnership, stating that the conversion opportunity offers significant upside by providing Tesla owners the chance to upgrade and access content on all devices at discounted priority pricing. Despite the drop in LiveOne shares by over 25 percent on the news, Ellin believes that the changes will drive growth, unlock new revenue streams, own data, and increase ARPU, adjusting revenue guidance for FY2025 to $120M-$135M and $8-15M adjusted EBITDA.
For any comments, concerns, or questions regarding the changes to LiveOne availability, readers can contact Joey at joey@teslarati.com or reach out on Twitter @KlenderJoey. Tips and news tips can also be sent to tips@teslarati.com. Tesla’s reshaping of LiveOne availability represents a significant shift in the relationship between the automaker and the streaming platform, with new opportunities for growth and revenue generation for both companies. The amended agreement aims to provide Tesla owners with enhanced access to music and content through LiveOne, while also incentivizing subscribers to upgrade to premium services for a better user experience.
The changes to LiveOne availability reflect a strategic decision by Tesla to evolve its offerings and partnerships to better meet the needs and preferences of its customers. By replacing the streaming button with LiveOne in perpetuity, launching LiveOne 2.0 for cross-platform access, and offering discounted music packages, Tesla is positioning itself as a leader in providing integrated entertainment options in its vehicles. The discontinuation of LiveOne subsidies for some customers may be a move to streamline costs and encourage direct subscriptions, which could result in increased revenue for both Tesla and LiveOne.
The amended partnership between Tesla and LiveOne opens up new opportunities for growth and revenue generation, with an emphasis on driving subscriptions and upgrading users to premium services. While the changes may have initially caused a drop in LiveOne shares, the long-term potential for increased ARPU and revenue is significant. By offering discounted pricing and access on all devices, LiveOne aims to retain and incentivize Tesla owners to continue using its services, creating a mutually beneficial relationship between the two companies. The conversion of subscribers to premium services and the discontinuation of subsidies represent a strategic shift in how LiveOne and Tesla engage with their customers, with a focus on driving growth and enhancing user experiences.
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