Spotify Will Brick Every 'Car Thing' It Ever Sold
Spotify to Disable All 'Car Thing' Devices: Fair?
Spotify has announced it will deactivate all its Car Thing devices on December 9, without offering refunds or exchanges. The device, launched in early 2022, was designed to enhance in-car listening but required both a Spotify Premium subscription and a smartphone connection. Following its discontinuation, users have urged Spotify to open-source the device to avoid waste, but the company has not responded to these requests. Instead, Spotify has advised owners to dispose of the devices according to local e-waste regulations.
How did the discontinuation of Car Thing impact Spotify's financials in their Q1 2022 earnings report?
The discontinuation of the Car Thing device negatively impacted Spotify's financials as reported in their Q1 2022 earnings4. Specifically, the decision to cease production of Car Thing resulted in a significant financial hit of 31 million euros (approximately $31.4 million at the time). This substantial write-off contributed to a decrease in the company's gross margins, indicating a direct financial consequence from the unsuccessful venture into hardware.
What are the key features of the Car Thing device, and what requirements must be met for it to function?
The Car Thing device is a dedicated player for Spotify's music and podcast library designed for in-car use1. It offers multiple control options such as voice control ("Hey Spotify"), a dial, touch screen, and preset buttons for physical interaction. The device connects to your phone via Bluetooth and is powered by the 12-volt port in the car. It can connect to the car stereo wirelessly via Bluetooth or wired with an aux or USB jack. The phone serves as the internet connection for accessing Spotify content, while the Car Thing acts as a controller and display.
To function properly, users need a Spotify Premium subscription, a smartphone with a mobile data connection or Wi-Fi, and a car with Bluetooth or an aux connection. The device is not a standalone unit and relies on the phone to stream music and podcasts.