Xperi Launches First UK In-Car Entertainment Report, Consumers Call for a Personalised Entertainment Dash

Rhea-AI Summary

New research from DTS, Inc., a wholly owned subsidiary of entertainment technology company Xperi Inc. (NYSE: XPER), reveals that in-car entertainment is of utmost importance for 67% of UK adults. High-quality video capabilities are a deciding factor in vehicle purchases for 37% of consumers. 42% of respondents believe vehicle entertainment should offer personalized preferences, high-quality audio, and easily discoverable content.

Insights

Market Research Analyst

The data from the DTS, Inc. report reflects a significant trend towards the prioritization of in-car entertainment systems in consumer vehicle purchasing decisions. The emphasis on high-quality video capabilities and personalized content as critical factors for a substantial portion of the UK market indicates a shift in consumer expectations. From a market research perspective, this suggests that vehicle manufacturers should focus on differentiating their in-car entertainment offerings to cater to these evolving preferences. The younger demographic, in particular, is more inclined to value advanced infotainment features, which could lead to a generational shift in vehicle design and marketing strategies.

Furthermore, the importance of content discoverability and rich details implies that consumers are seeking a more engaging and informative in-car experience. Vehicle manufacturers that can integrate these elements into their systems may gain a competitive edge. This trend also opens up new avenues for partnerships with content providers and tech companies, potentially leading to innovative business models and revenue streams within the automotive industry.

Automotive Industry Analyst

The insights from the report indicate that the automotive industry is at a pivotal point where in-car entertainment could become a primary selling point, especially among younger consumers. This could influence not only the consumer's choice at the point of sale but also impact the resale value of vehicles equipped with advanced entertainment systems. As the journey towards autonomous vehicles progresses, the role of the in-car entertainment system is likely to grow even more critical, effectively transforming the vehicle into a 'third space' for work, leisure and social interactions.

The emphasis on personalization and high-quality video capabilities suggests that manufacturers need to invest in robust hardware and software solutions that can support these features. This could lead to increased manufacturing costs, but also the potential for higher margins if consumers are willing to pay a premium for these advanced systems. The shift towards such systems could also affect the traditional supply chain and partnerships, as car companies might need to collaborate more closely with technology and content providers to meet consumer demands.

Consumer Technology Analyst

This report highlights a convergence between the automotive and technology sectors, with in-car entertainment systems increasingly resembling the functionality of smart devices. The demand for personalization and quality content delivery mirrors the broader consumer technology trend where users expect their devices to know their preferences and suggest content accordingly. The automotive sector could potentially adopt similar algorithms and user interface designs that have been successful in the consumer electronics space.

Moreover, the report indicates potential for growth in the in-car app market, akin to the smartphone app ecosystem. Developers may find new opportunities to create in-car specific applications, ranging from entertainment to productivity, which could enhance the user experience. The integration of such apps could also lead to data collection opportunities for car manufacturers, enabling them to refine their products and services further. However, this also raises questions about data privacy and security, which manufacturers will need to address to maintain consumer trust.

• Nearly half (42%) of UK adults insist in-car entertainment systems need to go beyond being a mirror of their smartphone
• High-quality video capabilities are a deciding factor in vehicle purchases for over a third (37%) of consumers

LONDON--(BUSINESS WIRE)-- New research from DTS, Inc., a wholly owned subsidiary of entertainment technology company Xperi Inc. (NYSE: XPER), today reveals that in-car entertainment is of the utmost importance for 67% of UK adults — a number that soars to 84% for those aged 17-44. This underscores the growing significance of vehicle entertainment systems for those looking to purchase or lease a new car in the near future.

Delving deeper, The Evolution of In-Car Experiences report finds that the in-car entertainment experience must go beyond mirroring a smartphone. For 42% of respondents, vehicle entertainment needs to offer them personalised preferences, the highest quality audio, and easily discoverable content.

In fact, a majority (59%) emphasised the importance of having content curated to their individual preferences or past choices in their ideal in-car entertainment system, increasing to 71% for those aged 25-34 and 74% for 35-44 year olds. These findings highlight the increasing significance of tailored personalisation and seamless discovery mechanisms, underlining the evolving expectations of users.

“In-car entertainment systems are taking centre stage in shaping the modern connected car experience, especially as the journey towards autonomous vehicles continues,” said Gereon Joachim, vice president automotive sales & strategy, Xperi. “The findings underscore the importance of vehicle manufacturers providing an extraordinary in-car infotainment experience that establishes a personalised connection beyond a car purchase.”

Joachim continued, “Each generation is placing more importance on entertainment than the last, demanding that a vehicle transcends mere transportation to also deliver an immersive, tailored, captivating third space.”

“To meet consumer demands, vehicles must provide the same personalised, versatile experience we are all used to at home, bringing together curated independent connected radio, audio, games and video in the dash,” further said Joachim. “This shift not only heralds exciting opportunities for monetisation but also opens up endless new markets for car companies.”

Further highlights from the Evolution of In-Car Experiences report:

• Extraordinary in-car infotainment experiences will sell cars: High-quality video capabilities are a deciding factor in vehicle purchases for 37% of UK consumers — notably higher among younger demographics—65% of 25-34 year olds and 61% of 35-44 year olds

• Content must be discoverable: Easy access to content on the dashboard, such as podcasts and audio books, is crucial for 64% of respondents

• Rich details are key: More than half (58%) express the importance of having details such as album cover images and biographical information displayed on the dash increasing to 75% of those aged 35-44 and 70% aged 25-34

Methodology from Censuswide

The research was conducted by Censuswide, with 1006 Consumers who own/lease a vehicle (17+) across the UK between 29.09.2023 – 03.10.2023. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.

About Xperi Inc.

Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS®, HD Radio™, TiVo®), and by its startup, Perceive, and IMAX Enhanced, an IMAX and DTS partnership, have been integrated into billions of consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences. Xperi has created a unified ecosystem that reaches highly engaged consumers driving increased value for partners, customers and consumers.

©2024 Xperi Inc. All Rights Reserved. Xperi®, TiVo®, DTS®, HD Radio™, Play-Fi®, Perceive® and their respective logos are trademark(s) or registered trademark(s) of Xperi Inc. or its subsidiaries in the United States and other countries. All other trademarks and content are the property of their respective owners.

About DTS, Inc.

Since 1993, DTS has been dedicated to making the world sound better. Through its pioneering audio solutions for mobile devices, home theater systems, cinema and beyond, DTS provides incredibly high-quality, immersive and engaging audio experiences to listeners everywhere. Now, DTS is also powering imaging and sensing technologies as well. For more information, please visit www.dts.com.

XPER-P

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124509544/en/

Allyse Sanchez

allyse.sanchez@xperi.com

Source: Xperi Inc

FAQ

What is the importance of in-car entertainment for UK adults?

In-car entertainment is of utmost importance for 67% of UK adults, with high-quality video capabilities being a deciding factor in vehicle purchases for 37% of consumers.

What percentage of consumers believe vehicle entertainment should offer personalized preferences?

42% of respondents believe vehicle entertainment should offer personalized preferences, high-quality audio, and easily discoverable content.

What are some key highlights from the Evolution of In-Car Experiences report?

High-quality video capabilities are a deciding factor in vehicle purchases for 37% of UK consumers. Easy access to content on the dashboard, such as podcasts and audio books, is crucial for 64% of respondents. More than half (58%) express the importance of having details such as album cover images and biographical information displayed on the dash.

What was the methodology of the research conducted by Censuswide?

The research was conducted by Censuswide, with 1006 Consumers who own/lease a vehicle (17+) across the UK between 29.09.2023 – 03.10.2023. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.