Tesla launched its "Full Self-Driving” software in July with a $199 monthly subscription.Subscription services have been explored by BMW, Mercedes and Cadillac.Drivers could add personal features such as heated seats or autopilot to their services.Ten Things in Tech: Keep up-to-date with the latest tech trends and innovations. Loading Click Sign up to receive marketing emails and other offers from Insider.As automakers create more luxurious and sophisticated features for their vehicles, drivers may be tempted to pay for subscription services similar to Netflix.Tesla started offering monthly subscriptions to its Full Self-Driving (FSD) software earlier this month. Initial launch of the driver assistance program was a $10k upfront fee. The driver assistance program is not fully autonomous and requires a licensed driver to operate the vehicle.A subscription to the FSD add on costs $199 per monthly and includes features such as autopilot and parking options.Many other carmakers seem to be following a similar model when it comes time to offer additional subscription features or add-ons for their vehicles.BMW released a software update last year that allowed for digital customization through subscription add-ons and on-demand functions like heated seats.Other subscription services have been stopped by the German car manufacturer. Customers expressed dissatisfaction at having to pay an extra fee for services that were already included in their vehicle purchase. The company then reversed its decision to charge $80 annually for Apple CarPlay in 2019.Axios spoke with Sam Abuelsamid, principal analyst at Guidehouse Insights, about how subscription services could prove to be a boon to carmakers.Abuelsamid stated, "If you can get someone hooked on a subscription then it's like Netflix." It doesn't matter if you use the feature, you tend to pay more for it."Subscription options have been explored by General Motors' Cadillac brand and Mercedes-Benz. Automotive publication The Drive reported Monday that Mercedes plans to offer rear-wheel steering for its electric QS for $576 per annum in Germany.The AutoBlog also reported that Cadillac began charging $25 per month to drivers for its Super Cruise technology. This extra monthly fee is added to the equipment's initial price, which can be as high as $2,500. If the driver decides to continue the service after the three-year free trial, the monthly fee will be added.Elon Musk, Tesla's CEO, said that it was "debatable" whether paying for additional services such as the $199 FSD Software during Tuesday's earnings call. Elon Musk stressed that the success of the subscription depends on whether the company can find a compelling price and make the service worthwhile."Right now, is it sensible for someone to subscribe to FSD? Musk stated that he thinks it is debatable. Musk said, "But once Full Self-Driving is widely used, the value proposition will become clear."Read Axios full report on the new subscription trend.
