Spotify Technology SA SPOT has decided to refund customers who purchased its Car Thing dashboard accessory before deactivating the devices in December.
What Happened: The music streaming platform, which discontinued its Car Thing in 2022 has now announced plans to deactivate all remaining hardware products on Dec. 9, 2024. The company is offering refunds to customers who reach out to Spotify support and provide proof of purchase, reported The Verge.
The decision to offer refunds comes after a group of Car Thing customers filed a class action lawsuit against Spotify over the short-lived and now-defunct accessories.
Car Thing was a simple external screen/remote control for the Spotify app on a user’s phone, primarily targeting drivers whose cars lack Android Auto or Apple CarPlay.
Despite being a sales failure for Spotify, the device gained popularity when it was put on a fire sale, with users repurposing it for non-car uses like home desk setups and keyboards.
Why It Matters: This move by Spotify follows a challenging year, which saw the company increase its music streaming service’s price in 2023, with further increases rumored for 2024.
The company also underwent a round of layoffs, affecting 17% of its staff, and cutting off some popular music discovery tools.
Last month, Spotify reported its fiscal first-quarter 2024 revenue had grown by 20% year-on-year to $3.95 billion, surpassing the expected $3.85 billion. Earnings per share were $1.05, exceeding the anticipated $0.70.
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