Is Tesla Removing Free Music Streaming (Streaming in North America and Spotify in Europe)?

Tesla currently offers free music streaming with every Tesla, although you’ll need Tesla’s Premium Connectivity package to stream over the vehicle’s cellular data or be on WiFi. In North America, Tesla includes what they used to call “Streaming,” and have just recently renamed to call LiveOne. However, in Europe, where LiveOne isn’t available, Tesla provides a free license for Spotify, which allows owners to stream the service for free without having to subscribe.

However, it looks like this may be coming to an end. We recently received an anonymous tip that Tesla would be ending this free benefit for its European customers. While we haven’t been able to confirm this just yet, it does seem likely. Let’s take a look at why we think this could be happening.

European Spotify Premium

Tesla’s European customers receive a free license of Spotify Premium right now – whether they’re subscribed to Spotify Premium or not. This means customers can listen to ad-free music, have unlimited skips, play music in any order, and be able to sort and queue songs for listening. However, the account is limited to listening in your Tesla, much like LiveOne in North America.

You’re also not given the credentials to the Spotify account, preventing you from using the same account on other devices. If a customer decides to subscribe to Spotify Premium on their own, they can still log in to their account in their Tesla and share the same Spotify account and playlists with other devices, just like you can in other regions.

Removal of Free Premium Benefits

Given the tip we received and some other recent information, we expect this change to happen. This appears in line with other changes to Tesla’s streaming services, including the changes to Slacker/LiveOne Radio in North America.

As Tesla adds additional music services like YouTube Music, Amazon Music, Apple Music, and SiriusXM in the future, it becomes more likely that Tesla vehicles have a music service someone may already subscribe to. This is especially true with the addition of Amazon Music, which is included with an Amazon Prime subscription. According to Statista, there are now over 180 million Amazon Prime members.

Subscribing to a music service has also become much more popular in recent years. In the United States alone, there are now more than 90 million music streaming subscriptions (Forbes), and that trend continues to grow year over year.

While Tesla likely only pays a small fraction of what a customer would pay for a Spotify Premium subscription, even if it’s just 50 cents per month, that amount would definitely add up with the more than 6 million Teslas on the road today.

Tesla certainly has the data to understand how many customers use the service that’s included in the vehicle and will use this to make the transition at the right time. At some point, it just doesn’t make sense to continue to pay for a service most customers don’t use.

Timeline

We were told that this change would happen this year, so it may not be much longer before we hear about this change officially from Tesla. What’s not clear is whether this would impact all customers or potentially only new customers. A lot may depend on their deal with Spotify and LiveOne and whether it’s based on a flat fee per vehicle or a monthly/yearly fee.

Based on industry changes alone, we would expect this to impact all customers. However, we’ll have to wait for official confirmation from Tesla, as until then, this should be considered a rumor.

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