Tesla is reshaping the availability of LiveOne, a service powered by Slacker, as the company announced an amended agreement with the automaker.
LiveOne is a streaming platform that is integrated into Tesla vehicles and houses Slacker, a popular radio option for owners.
However, the company announced today that it has an amended partnership with Tesla, which takes effect today. It listed six key highlights:
1. Effective Oct 1, 2024: Tesla replaces streaming button with LiveOne’s in perpetuity
2. LiveOne 2.0 launches, providing subscribers access to music on all devices
3. 1.9 million subscribers can convert to Premium/Plus services
4. Potential 3x increase in Average Revenue Per User (ARPU)
5. As of Dec 1, 2024, Tesla will no longer subsidize LiveOne products to some of its customers, however, LiveOne will offer all Tesla customers discounted LiveOne music packages
6. Tesla will continue to pay LiveOne monthly for grandfathered users in perpetuity
A Teslarati reader sent us this message from Tesla, which communicated with owners that things would be changing with LiveOne and the Premium Connectivity subscription:
“Starting December 1, 2024, your LiveOne powered by Slacker Radio account will no longer be included with your Premium Connectivity subscription. If you’d like to listen to LiveOne’s curated stations in your Tesla and on your other devices beyond this date, you can subscribe by following the next steps:
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- Open the LiveOne app, previously the Streaming app, from the bottom bar (requires software version 2024.32.4 or later)
- Tap on the Account tab
- Scan the QR code and update the account information
Your Premium Connectivity subscription allows you to stream music, podcasts and audiobooks from your favorite media apps. Tap the icon of your preferred app on your vehicle’s touchscreen and log in to your account. “
LiveOne CEO Robert Ellin also commented on the amended partnership, stating that this conversion has “enormous upside” and will help with discounted priority pricing:
“The conversion opportunity has enormous upside by offering Tesla owners an opportunity to upgrade and have access on all devices at discounted priority pricing. We’ll drive growth, unlock new revenue streams, own our data, and increase ARPU. To be conservative, due to the timing of our conversion rate, we are adjusting FY2025 revenue guidance to $120M – $135M and $8-15M adjusted EBITDA.”
LiveOne shares have dropped over 25 percent on the news.
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