Auddia Inc. (NASDAQ:AUUD) has announced the integration of its faidr mobile application with Apple CarPlay and Android Auto. This development allows users to mirror their smartphone entertainment options on their vehicle's infotainment system, enhancing accessibility and convenience for ad-free AM/FM radio and podcast streaming.
The significance of this integration cannot be overstated. According to Wards Intelligence, more than 90% of new vehicles as of mid-2023 are equipped with Apple CarPlay or Android Auto. This widespread adoption underscores the importance of smartphone mirroring technologies, which a McKinsey & Co study found to be a crucial factor for a significant portion of car buyers. Specifically, 25% of EV buyers and 38% of combustion car buyers in the U.S. indicated they would not purchase a vehicle without these features.
Moreover, the Radio Advertising Bureau (RAB) reports that when Apple CarPlay or Android Auto is available, AM/FM radio is the top choice for audio listening, accounting for 46% of the time spent. This is followed by SXM at 19% and music player streaming at 18%. These statistics highlight the potential reach and impact of faidr's integration with these platforms.
Michael Lawless, CEO of Auddia, emphasized the user benefits of this integration. While customers could previously listen to faidr via Bluetooth, the new functionality provides a more seamless, hands-free experience. "The automatic connection and hands-free interface of accessing phone controls through the dash is easier, more convenient, and safer when performed through smartphone mirroring technologies like Apple CarPlay and Android Auto," said Lawless. He added that this integration significantly extends Auddia's reach within the U.S. radio streaming space.
Looking ahead, Auddia plans to pursue direct integrations into vehicle infotainment systems to cater to consumers whose vehicles do not support smartphone mirroring technologies. This move is part of a broader strategy to expand faidr's accessibility across various platforms, including smart speakers, desktop, and home entertainment systems.
Jeff Thramann, Executive Chairman of Auddia, outlined the company's two-pronged growth strategy. The first part focuses on delivering differentiated audio listening experiences, such as ad-free AM/FM radio and podcast options. The second part aims to make these unique experiences available across a wide range of platforms. "As we execute both parts of this strategy, we expect to see increasing numbers of users coming to faidr at ever lower customer acquisition costs, resulting in an increasing rate of subscription conversions and associated revenue," Thramann stated.
In a further boost to its innovative offerings, Auddia plans to launch an AI-assisted music-only AM/FM service in Q4. This new feature will allow consumers to listen to their favorite stations without ads or DJs, focusing solely on music.
Auddia's continuous efforts to enhance the faidr listening experience and expand its availability across different environments reflect a significant advancement in the audio streaming landscape. The integration with Apple CarPlay and Android Auto is a crucial step in making high-quality, ad-free audio content more accessible to a broader audience.
