In a recent study, ROI Research Inc. identified the automotive industry as that in which buyers”™ purchase decisions are most influenced by feedback on social media sites.
If Harman International Industries Inc. has anything to say about it, those purchase decisions will soon be influenced by social media capabilities within the automobile itself.
The audio systems giant is acquiring Aha Mobile Inc., which converts Web-based content ”“ including content from social media sites ”“ to streaming mobile radio for people driving their cars.
Stamford-based Harman did not immediately disclose what it paid for Aha Mobile, which is based in Palo Alto, Calif. In 2009, Aha Mobile received $3 million in funding from Venrock, a Silicon Valley venture capital firm.
For its fiscal year ending June 30, Harman had a $35 million profit as sales rose 18 percent to nearly $3.4 billion, coming off a 2009 fiscal year when it recorded a $422 million loss. In August, the company announced major new contracts to supply “infotainment” systems to Chrysler and its Fiat affiliate, and to Toyota Motor Corp., with the deals worth a combined $1.8 billion over their lifetime.
These days, automakers are looking for more than good audio sound.
“Delivering safe and convenient Internet access to mobile users is one of the biggest challenges facing the infotainment industry,” said Dinesh Paliwal, CEO of Harman, in a prepared statement. “In particular, the rapid growth of social networking through platforms such as Facebook, Twitter and others must be carefully managed in the automotive environment to prevent driver distraction.”
Aha Mobile launched its “Aha Radio” application for the Apple iPhone earlier this year, which helps mobile users share real-time, location-based traffic reports, entertainment and social network information.
The deal comes even as states stiffen penalties for motorists caught sending or reading text messages as they drive, with the National Safety Council estimating that 200,000 crashes are caused annually.
In June, Gov. M. Jodi Rell signed into law a bill that increases the penalty for the use of mobile devices while driving, while providing municipalities a 25 percent bounty collected from any summons they issue ”“ a clear signal to local police to aggressively stop texting while driving.
“We have annual truck driving championship,” said Michael Riley, executive director of the Connecticut Motor Transport Association. “I ask a question of everyone that comes, and the question is, ”˜What”™s the most dangerous thing you see out there?”™ And these guys ”“ almost 80 percent of them ”“ will tell me it”™s texting in cars and in trucks, too.”
Still, in a survey of people ages 14-29 published last month by Volkswagen AG and MTV Networks, respondents indicated they want to see social networking extended to the car.
And companies are responding ”“ Bump.com recently won wide notice for its service that allows a driver to punch in the license plate of a neighboring car in order to connect directly with the vehicle”™s owner over a social network.
Aha Mobile was founded only in 2008 by MIT graduate and Harvard Business School MBA Robert Acker, who claims status as the first-ever full-time employee at XM Satellite Radio, before that having worked as an engineer at Boeing Co.”™s satellite systems division. Acker would go on to RealNetworks, where he oversaw the company”™s Rhapsody music service and online music download store, then to Dash Navigation, which developed an Internet-connected GPS service.
