
Digitally locking hardware makes it cheaper 🤡
Audio Summary
AI Summary
The speaker begins by apologizing for recent unavailability due to restructuring their business, which has consumed a lot of time. They then shift to discussing an email received from a viewer, aiming to turn it into a conversation rather than just responding, acknowledging that they are open to being wrong.
The email discusses a video by Steve Lato concerning Honda charging for garage door openers by subscription. The email sender suggests that this model, using heated seats as an example, could be a win-win. They argue that if heated seats cost $600 and are installed in all cars, those in warmer climates like Texas pay for a feature they don't need. If the manufacturer installs them in all cars for $40 each, but charges $250 if installed piecemeal, and 80% of buyers want them, then putting them in every car is the cheapest option. The sender believes that if only those who want heated seats pay for them, it could be beneficial, provided the terms are clear upfront.
The speaker responds by first clarifying that the original story about Mazda (not Honda, as mentioned in the email) charging a subscription for garage door openers, which Steve Lato discussed, was false. They explain that they fact-check topics rigorously, often against the Consumer Rights Wiki's sourcing standards, and this particular story didn't meet those standards, making it unsuitable for a video.
The speaker then addresses the core issue, which they believe Steve Lato initially missed, but later admitted in a follow-up video: the plausibility of such a story. The speaker notes that the fact that people readily believed a story about subscription-based car features highlights a concerning cultural shift. They contend that the email sender's argument—that this model makes cars cheaper—is flawed because car prices are consistently increasing, not decreasing. If this argument were applied broadly, people wouldn't truly own many of the things they've paid for, even physical hardware, which the speaker finds unacceptable.
To illustrate this, the speaker provides analogies: a stove with locked burners unless an extra payment is made, or an air conditioner with a high-flow mode that requires additional payment despite the hardware being fully paid for. While acknowledging these are software issues, not hardware, they serve to highlight the absurdity of paying to unlock functionality in already purchased items.
The speaker points to Tesla's Autopilot as a real-world example. Autopilot used to be included with the car, with full self-driving being an upgrade. However, full self-driving's price continuously increased despite its limitations, and basic Autopilot is now bundled into full self-driving, which has become a subscription. The speaker emphasizes that Tesla did not lower car prices when these changes occurred; instead, they made more money by charging for features previously included. They challenge listeners to name a car manufacturer that lowered the base price of a vehicle after making features subscription-based, noting that prices generally stay the same or increase.
The speaker argues that historical progress shows that when things improved, the benefits were universally adopted. For instance, color televisions became standard once economically viable, without an extra charge to "unlock" color. They believe this argument about paying for specific features to reduce overall cost doesn't hold up in industries where prices are not decreasing.
Finally, the speaker opens the discussion to the audience, asking for examples where implementing digital locks or subscription features has genuinely led to cheaper devices or vehicles. They express their observation that cars are becoming less reliable and more expensive for what they offer, rather than cheaper and better. The speaker reiterates that the problem isn't just that a story might be wrong, but that such stories are now so believable, reflecting a societal shift where once-ridiculous concepts are now plausible. They invite viewers to comment on whether they perceive car prices decreasing due to increased digital features and locks, or if prices are consistently rising.