Subscription revenue schemes exist in a lot of places - eg software products. As auto marketing veers more and more to "entertainment" and "technology" marketing, I can see this becoming more prevalent. And as software designers become a bigger voice in car design, it's not surprising that some may suggest this as a crossover from those other markets. The software itself may become obsolete and newer choices may appear over the life of the vehicle.
Arguably, if you want internet or satellite radio, it's cheaper to buy for the time you own the car than for all time, especially since any buyer or trade-in assessor may not value that feature. Somehow that all-time choice needs to be apparent in pricing, of course.
Any feature that is tied to safety or operability should not be subscription friendly.... these features should be treated as "built in" and should remain for the life of the vehicle. (And updated for free, if the manufacturer produces a new version of the underlying software)
BMW probably thought they could get away with the scheme as they are a higher end "prestige" brand, they probably figured people would shell out the money rather than switch brands. I can see that approach being far less popular with the "average driver" brands where buyers may have less brand loyalty and be more willing to shop around. Certainly, if one brand chose to go this route, I can see another brand offering an "all lifetime features" guarantee as a competitive feature, and likely getting more favour in the court of public opinion.
FWIW my dealer wants $400 for a memory chip with the latest version of the GPS maps - for a 10 year old vehicle. I'm willing to stick with the old maps.
- Paul