Premium Internet Revenue Opportunities
May 21st, 2019According to Number of Tesla vehicles delivered worldwide from 3rd quarter 2015 to 1st quarter 2019 (in units) from Statistica, Tesla has had the following deliveries in the last 3 quarters:
63,000 Q1 19| 90,700 Q4 18 | 83,500 Q3 18 = 237,200
Tesla will begin charging ~$100/year for Premium Internet as of June 2018 for any owners who have non-premium interiors or have had their 1 year of free Premium Internet expire.
This opens up a new revenue stream which is growing as more expiry's occur and more non-premium vehicles are sold.
The conversion rate is still a mystery, however Tesla has done an amazing job hooking people in with the year free trial. No Premium Internet, No Streaming Music. No web browser on the road. Will it impact Sentry Mode? What about the ability to connect to your car from your mobile app? I think that losing any of those features will convert some. Losing all would convert most.
As more and more free trials expire Tesla will eventually be enticing those 237,200 owners to pay the extra $100/year resulting in a cash injection into the company of upto $23.7M/year and growing.
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ABOUT THE AUTHOR:Software Developer always striving to be better. Learn from others' mistakes, learn by doing, fail fast, maximize productivity, and really think hard about good defaults. Computer developers have the power to add an entire infinite dimension with a single Int (or maybe BigInt). The least we can do with that power is be creative.
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