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"‘Car as a Platform?’ Carpotainment SMEs Are Rising"

Popular Carpotainment Service for Navigation, Payment, and Multimedia Enjoyment
Cars Transforming into Spaces Combining Information and Entertainment

"‘Car as a Platform?’ Carpotainment SMEs Are Rising" With the resurgence of COVID-19 limiting outings and travel these days, carpotainment (the fusion of automobile, information, and entertainment) is rapidly emerging as an alternative leisure activity. Illustration by O Seongsu

[Asia Economy Reporter Kim Heeyoon] #Shin Jihye (pseudonym), who often visits coin karaoke rooms on her way home from work, recently enjoys evening drives and uses karaoke services in her car after karaoke rooms were shut down due to the resurgence of COVID-19. Shin said, “Using the read-aloud karaoke service provided through the navigation voice recognition while driving, I listen to the lyrics of songs I don’t know well and hum along, which helps relieve stress.”


#Kim Byungjun (pseudonym), who is working from home due to COVID-19, watches movies in his car after dinner using a streaming stick. Kim explained that during the COVID resurgence, he was hesitant to go to the theater, the TV was occupied by his wife and children, and watching movies on the computer he had been looking at all day was uncomfortable. So, every evening he enjoys watching movies alone on the navigation screen inside his car.


With outings and travel restricted due to the COVID-19 resurgence, carpotainment (a fusion of car, information, and entertainment) is rapidly emerging as an alternative leisure activity.


According to industry sources on the 26th, cars, once just a means of transportation, are transforming into new entertainment fusion spaces amid the contactless culture brought on by COVID-19. As cars evolve into moving software platforms, both automakers and aftermarket companies are quickly developing and launching related products. In particular, vehicle displays, recognized as the ‘fourth screen’ following TV, PC, and mobile, are gaining attention not only for providing driving information but also as a means to enjoy various content.


"‘Car as a Platform?’ Carpotainment SMEs Are Rising" Streaming sticks that utilize multimedia functions through the vehicle's stock display screen are popular as they can be connected with smartphones to fully enjoy content inside the car. Video provided by Fine Digital

Streaming sticks popular for multimedia enjoyment like movies and music on vehicle displays

Streaming sticks that enable multimedia functions on factory-installed vehicle display screens allow users to fully enjoy content inside the car by connecting with smartphones. According to Fine Digital, “Since the recent resurgence of COVID-19, sales of streaming sticks have surged,” adding, “They are receiving positive responses mainly from consumers who want to enjoy music and movies alone in their cars.” The company’s ‘FineDrive AI 2,’ released at the end of July, can be installed in just one second by plugging into the vehicle’s USB port, and the app installed on the smartphone can stream content to the vehicle display. A Fine Digital representative said, “Real-time streaming of videos and music inside the car is freely possible, helping drivers enjoy driving more entertainingly.”


"‘Car as a Platform?’ Carpotainment SMEs Are Rising" The "Reading Karaoke" service presented by Kumyoung Entertainment is provided through SK Telecom's mobile navigation T map. Photo by Kumyoung Entertainment

‘Read-aloud karaoke’ service gains popularity amid karaoke business suspensions

With karaoke rooms shut down due to COVID-19, the read-aloud karaoke service embedded in navigation systems is also gaining great popularity. The ‘Read-aloud Karaoke’ service offered by Kumyoung Entertainment is provided through SK Telecom’s mobile navigation app T map. It operates with simple commands after launching T map, powered by SK Telecom’s voice recognition AI service. This service uses the text-to-speech (TTS) program to have famous celebrities read the lyrics or voice actors boost excitement before the song starts, creating a karaoke-like atmosphere inside the car. Currently, it includes over 10,000 songs. A Kumyoung Entertainment official said, “In the contactless era, more people are singing in their cars instead of karaoke rooms, and we have reflected this trend in the service,” adding, “Hundreds of new songs will be updated every month.”


"‘Car as a Platform?’ Carpotainment SMEs Are Rising" Cafe24 information displayed on the Genesis G80 navigation. Photo by Genesis

Vehicle models equipped with ‘CarPay’ in-car payment system gaining popularity

In the carpotainment era, cars also function as credit cards. The in-car payment system (ICPS) called ‘CarPay’ allows users to make payments conveniently without leaving the vehicle using credit cards registered in the car. Hyundai Motor Group partnered with six card companies, including Hyundai Card and Shinhan Card, to first support CarPay in the Genesis ‘GV80,’ then expanded the feature to Hyundai’s ‘Avante’ and Kia’s ‘Sorento.’ Additionally, in line with the contactless trend and the popularity of drive-thru services, Hyundai Motor Group has expanded CarPay-affiliated merchants nationwide to 1,233 locations (including 160 SK Energy directly operated gas stations and 1,073 parking lots contracted with Parking Cloud) and plans to apply CarPay to all future vehicle models to gain an advantage in the in-car payment competition. It is also reported that CarPay will be gradually installed in vehicles for overseas export.


"‘Car as a Platform?’ Carpotainment SMEs Are Rising" Mapers has added a variety of convenience features through an update to the iOS version of its navigation app 'Atlan,' including restaurant reservations, parking lot searches near destinations, and electric vehicle-specific functions. Photo by Mapers

Navigation systems now allow everything from booking to payment at popular restaurants directly from the vehicle

A service enabling drivers to book and pay at popular restaurants while driving has also been launched. Map software company Mappurs updated the iOS version of its navigation app ‘Atlan’ so users can check real-time information needed while driving directly within the app. Along with new features such as ‘Route Search’ for gas stations and electric vehicle charging stations and school zone avoidance route guidance, the app now offers the ability to book and pay at restaurants through the navigation system. A Mappurs representative said, “We introduced a ‘one-stop system’ that allows drivers to check restaurant information and make reservations within the app,” adding, “We plan to strengthen related services by expanding partnerships with dining platform companies such as ‘MangoPlate’ and ‘Poing.’”


Regarding the carpotainment competition among automakers and aftermarket companies, an industry insider said, “The concept of cars is expanding more and more, from autonomous driving to carpotainment,” and predicted, “Each company will develop various products and functions to enhance connectivity between vehicles and smartphones in line with the full-scale carpotainment era.”


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