In-car entertainment a major opportunity for automakers, report

A new report from Gracenote, the content data business unit of Nielsen, highlights growing opportunities for car manufacturers to deliver enhanced in-car entertainment experiences. By optimizing infotainment systems that make it easy for drivers to access and enjoy content, automakers can strengthen customer relationships and unlock new revenue streams.

The report shows that 94 percent of consumers across the U.S., Germany, Japan, and South Korea would consider switching from using their smartphones for in-car entertainment to a built-in system if the offerings improved.

This presents automakers with the potential to boost monetization through channels such as in-car advertising, referrals, and analytics data. Notably, 60 percent of respondents said infotainment systems influence their decisions when choosing which vehicle to buy or lease.

Consumers seek curated and seamless in-car entertainment

Drivers increasingly want connected entertainment experiences that go beyond basic phone tethering. According to the report, 82 percent of drivers are interested in curated entertainment packages, while only 45 percent know exactly what they want to listen to at the start of a drive—indicating demand for smarter content discovery and recommendations.

Additional findings show that 67 percent of vehicle owners want infotainment systems to organize all available content regardless of source, while 63 percent seek personalized recommendations based on listening behavior. Half of the respondents also want access to news summaries, live sports scores, and alerts, and 28 percent would like more news and talk programming in their vehicles.

In-car content could become a key brand differentiator

Trent Wheeler, Head of Product Innovation, Gracenote: “Consumers want to easily navigate the wealth of available audio, video and sports content from various sources in their cars – and automakers are responding. By delivering personalized entertainment experiences through their native infotainment systems, car brands can build new relationships with their customers and ultimately, jumpstart recurring revenue streams.”

The report, based on a survey of more than 4,000 consumers across four markets, underlines the importance of entertainment as a differentiator in the automotive industry.

Gracenote’s global metadata and content delivery capabilities support automakers in enhancing in-car experiences, helping them manage vast libraries of radio, music, podcast, sports, and streaming data to create cohesive infotainment ecosystems.

The full report can be accessed here

www.gracenote.com

Follow Marketing Report on LinkedIn