Xperi Releases New Report, “From In-Vehicle Entertainment to Integrated In-Cabin Experience”

Rhea-AI Summary

DTS, Inc., a subsidiary of Xperi Inc. (NYSE: XPER), released a report revealing that in-dash video increases vehicle purchase intent for 67% of Gen Z/Millennials, highlighting the growing importance of the vehicle as a third space and the demand for rich, personalized, and discoverable content in the vehicle cabin.

Insights

Market Research Analyst

The report from DTS, Inc. underscores a transformative shift in consumer preferences within the automotive industry, particularly among younger demographics. The significance of in-vehicle entertainment systems, including in-dash video, has surged, aligning with broader trends in media consumption and personalization. Automakers are now tasked with integrating advanced multimedia capabilities to meet these evolving demands, which could influence vehicle purchase decisions.

From a market perspective, this shift can catalyze a series of strategic partnerships and investments in infotainment technology. Companies that can offer compelling, user-centric experiences are likely to capture a significant market share, especially within the Gen Z and Millennial segments. The emphasis on non-traditional automotive features highlights the potential for diversification of revenue streams for automakers and technology providers alike.

Furthermore, the demand for high-quality, personalized content reflects a broader societal trend towards tailored user experiences. This can have ramifications for content providers, advertisers and data analytics firms, as the automotive space becomes a new frontier for digital engagement. The ability to leverage vehicle data to enhance user experience while maintaining privacy and security will be a critical factor in the successful deployment of these systems.

Automotive Industry Analyst

The integration of in-dash video and on-demand streaming services into vehicle dashboards represents a significant evolution in the automotive sector. This development is indicative of the industry's response to changing consumer expectations, where the vehicle is increasingly seen as an extension of one's digital lifestyle. The report's findings suggest a growing market for vehicles equipped with advanced infotainment systems, which could become a key differentiator in the competitive landscape.

As automakers prioritize these features, we may see an acceleration in the adoption of new technologies such as 5G to ensure seamless connectivity. Additionally, the focus on personalized and high-quality entertainment options could drive innovation in user interface design and software integration. The potential increase in demand for vehicles that offer such sophisticated in-cabin experiences may also impact supply chain dynamics, with a higher emphasis on electronic components and software solutions.

It's important to consider the implications for traditional automotive players and new entrants, as the convergence of technology and automotive sectors could redefine market positions. Companies that can quickly adapt to these consumer trends and collaborate with tech firms may gain a competitive edge, potentially affecting their market valuation and investor interest.

Consumer Behavior Specialist

The data presented in the report not only signals a shift in the automotive industry but also provides valuable insights into the changing patterns of consumer behavior. The vehicle as a 'third space' is a concept that reflects a broader societal development towards multi-functional environments. For Gen Z and Millennials, the expectation for a vehicle to provide an immersive entertainment experience is indicative of a lifestyle that values connectivity and media consumption.

This trend may have wider implications for consumer-facing businesses, as it highlights the importance of integrating digital experiences into various aspects of daily life. Brands that can anticipate and cater to these multi-dimensional consumer needs are likely to enjoy greater loyalty and engagement. The desire for personalized and high-quality content within vehicles also suggests that consumers are seeking a seamless transition between their home, mobile and automotive environments, which could influence product development strategies across multiple industries.

An understanding of these consumer preferences is essential for businesses looking to develop targeted marketing strategies and product offerings. The emphasis on discoverability and ease of access to content could also shape future service models and content delivery platforms, as businesses strive to meet the expectations of a media-savvy generation.

In-dash Video Increases Vehicle Purchase Intent for 67% of Gen Z/Millennials

SAN JOSE, Calif.--(BUSINESS WIRE)-- DTS, Inc., a wholly owned subsidiary of entertainment technology company Xperi Inc. (NYSE: XPER), today released a new automotive report, “From In-Vehicle Entertainment to Integrated In-Cabin Experience.” The report reveals that the personal vehicle is rivaling or outpacing other personal third spaces, which refers to a physical or virtual environment where one can relax or unwind. As the importance of the vehicle as a third space grows, consumers want more from their dashboard, valuing rich, comprehensive, personalized and discoverable content, including video. The report further explores the entertainment and features consumers want in today’s vehicle cabin.

Based on the results of a survey conducted by Censuswide, among 1015 U.S. adults who own/lease a vehicle, the report finds that for the majority (65%) – and for nearly 80% of those age 44 and under – in-vehicle entertainment is important. Two-thirds of those 25 to 44 say they want that entertainment to be personalized, and to have the highest quality audio with easily discoverable content constantly updated to meet digital advances and evolving needs.

In-dashboard video, including TV and on-demand streaming, is particularly important among younger demographics: over two-thirds of respondents between the ages of 17 and 44 are interested in it, with the same percentage saying that video capability would make them more likely to purchase a particular vehicle.

“The role of the personal vehicle continues to evolve into much more than just a way to get from point A to point B and, with that, consumers’ in-cabin entertainment needs are becoming more complex -- from deeply integrated content to easily discoverable, high-quality video,” said Jeff Jury, senior vice president and general manager, Connected Car at Xperi. “As consumers, especially Gen Z and Millennials, look for an experience that makes the vehicle cabin a customizable, content-rich and comfortable third space, today’s technology offers automakers a unique opportunity to adopt progressive in-cabin platforms that can adapt rapidly to meet the evolving needs and preferences of their customers.”

Key Survey Takeaways:

• 70% of respondents between 25 and 34, and over 50% overall, view their vehicle as a third space.
• 71% of those 25 to 34 (and 56% overall) say they want their built-in vehicle entertainment experience to be more than a mirror of their smart phone.
• The majority (65%) of respondents – and nearly 80% of those 44 and under – say in-vehicle entertainment is important to them.
• 67% of those between the ages of 17 and 44 are interested in having video, including TV and on-demand streaming available as part of their vehicle dashboard/screen entertainment choices.
• 67% of those between the ages of 17 and 44 also say that having high-quality video capability in the dashboard/screens in a specific vehicle model/brand would make them more likely to purchase that vehicle.
• Of those who say in-vehicle entertainment is important:
  • 81% say it is important to have a broad range of content (local radio, streaming, podcasts, audio books, etc.), and to be able to access relevant, easily ‘discoverable’ content (i.e., recommended in the dashboard) without looking for it, such as, local radio, streaming, podcasts, audio books, etc.
  • Two-thirds say it is important that the content is enhanced with rich visual/textual information (i.e., album cover images, biographical info) about the artist and song listened to.
  • 82% overall say being able to continue listening to a radio station digitally when the vehicle has gone out of broadcast range is important.
• 70% of all respondents say that an in-vehicle, built-in entertainment experience that automatically personalizes to their particular tastes/interests is important, with the largest number saying it is very important because they ‘don't have to fiddle with controls when they are driving.’

The survey, conducted by Censuswide and commissioned by DTS, was fielded between September 29, 2023 – October 3, 2023. Download the report here: https://dts.com/wp-content/uploads/2024/01/From-In-Vehicle-Entertainment-to-Integrated-In-Cabin-Experience-2024-final.pdf

Methodology:

The research was conducted by Censuswide, with 2021 Consumers who own/lease a vehicle (17+) across the UK and USA between September 29, 2023 – October 3, 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.

About Censuswide

The research was conducted by Censuswide, with 1015 Consumers who own/lease a vehicle (17+) across the USA between September 29, 2023 – October 3, 2023. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.

XPER-P

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108833823/en/

Allyse Sanchez

allyse.sanchez@xperi.com

Source: Xperi Inc

FAQ

What does the report by DTS, Inc. reveal about in-dash video and vehicle purchase intent?

The report reveals that in-dash video increases vehicle purchase intent for 67% of Gen Z/Millennials, emphasizing the importance of rich, personalized, and discoverable content in the vehicle cabin.

What percentage of respondents view their vehicle as a third space according to the survey?

70% of respondents between 25 and 34, and over 50% overall, view their vehicle as a third space.

What is the importance of in-vehicle entertainment according to the survey?

The majority (65%) of respondents – and nearly 80% of those 44 and under – say in-vehicle entertainment is important to them.

What percentage of those between the ages of 17 and 44 are interested in having video as part of their vehicle dashboard/screen entertainment choices?

67% of those between the ages of 17 and 44 are interested in having video, including TV and on-demand streaming available as part of their vehicle dashboard/screen entertainment choices.

What do consumers want in their in-vehicle entertainment experience according to the survey?

Consumers want a broad range of content, easily discoverable content, and rich visual/textual information in their in-vehicle entertainment experience.