Spotify (SPOT) and its media war with Apple (AAPL) is going on the road with the former introducing Car Thing, its response to its rival's CarPlay.
Spotify first announced its debut hardware product in April 2021, describing the device as a smart player that brings modern in-car entertainment to older vehicles.
The company beta tested the product on an invite-only basis for the next six months before having a limited public release in October at a price of $80.
Now, Spotify is selling the device to the general public for $90 a pop. The service requires a subscription to Spotify Premium, which starts at $10 a month and tops out at $16 a month for up to six accounts.
What Does Car Thing Do?
In short, Car Thing is a USB powered Bluetooth remote control for the Spotify app on your phone. The device can be mounted on your vehicle's dashboard, vents or on a bracket that goes into the unused CD slot in your vehicle stereo.
Once mounted and powered on, the device syncs with the Spotify app wirelessly and displays the information about your music or podcast on its screen.
You can use the display to swipe through your audio selections. The Car Thing also features a wheel control that can be twisted to scroll and tapped to make selections.
So basically Car Thing allows you to use Spotify, and only Spotify, hands free in your vehicle via voice commands and hands on via the the touch screen and knob.
Users just need to say "Hey Spotify" before giving the device a command to use the hands free feature.
Spotify says it isn't finished developing Car Thing as the device launches in the U.S. only.
Spotify Enters an Already Crowded Market
Apple and Google (GOOGL) are already in the car streaming device market with CarPlay and Android Auto.
Both Android and Apple's devices offer users multiple streaming service options, including Spotify. So people who already own those devices will find Car Thing unnecessary.
Spotify also has competition from Amazon's (AMZN) screenless Echo Auto device, which relies solely on voice command to work. And if you have a modern car that already supports Bluetooth or has an auxiliary input, using your phone would probably be more practical.
However, Car Thing is ideal for older vehicles that don't have those newer features.
Spotify Is At a Turning Point
Spotify had a rough start to 2022 after navigating through the Joe Rogan controversy earlier this year, but the company is expected to become profitable for the first time in its public history this year.
Spotify's entrance into producing hardware could be a big part of its strategy to increase profits past this year.
The company is scheduled to report its first quarter results next May, with analysts still expecting a loss of 25 cents per share. However, for the remainder of the year, Wall Street is expecting a profit.
