From Yahoo Finance, April 21:
At the New York Auto Show this week, car fans, journalists, and industry watchers were treated to a feast for the eyes, with all the new car designs and plush interiors on display.
Under the skin of these cars, however, is a different beast — and it’s not the engine. It’s all the data these cars generate.
McKinsey estimates a car produces around 25 gigabytes of data per hour, which is an astounding amount. And this data is worth big money.
“The car has really turned into a modern computer and one that many people use as often as their regular computers,” Narrative CEO Nick Jordan says in an interview with Yahoo Finance from the floor of the New York Auto Show. Narrative is a data commerce platform that helps companies buy and sell data from each other, and helps optimize the data’s value. Jordan likes to say data is the “new oil.”
“[The automakers are] evolving their business to think of it as a data collection mechanism and then figuring out ways to use that data, everything from the direct monetization of the data, to providing better in-car experiences, and then even working with partners like insurance companies to build a— you know, a more vibrant ecosystem,” Jordan says.
The data itself is worth something, but it can be worth a lot more if the automakers know how to exploit it. Jordan says it's a combination of collecting the data, and commercializing it to get to real value.
“In the earlier stages, where [the automakers] have a limited number of sensors, they're doing limited data collection, it's probably about $100 over the lifetime of a car,” Jordan says. “As they get better, estimates go up to about $700 over the lifetime of a car, and so if you're selling tens of millions of cars, you know, it's a multibillion opportunity and industry for them.”....
....MUCH MORE
No. Not your data, not your opportunity.
