OYSTER BAY, NY -- Consumers have moved beyond physical DVD and Blu-ray media, and therefore so too must rear-seat entertainment, asserts ABI Research. 

The research firm says demand for applications to stream and download audio, video, games, news, sports and social media means the end of expensive OEM devices.

In addition, the majority of passengers will use their own smartphone or tablet devices in the back of the car rather than pay for an expensive embedded in-car solution. Therefore, OEMs must embrace bring-your-own-devices (BYODs) through either an accessory such as a mount or look to bundle OEM-branded devices with their new cars to add additional value.

"The logic of rear-seat entertainment makes a lot of sense, and why wouldn’t every parent, chauffeur, and back-seat passenger want this type of system in their cars? Arguably, the main reason that it never took off was cost. Typically, such a system would cost a consumer an extra $500 to $3,000; in addition, many have limited file compatibility and become outdated fairly quickly. Therefore, such systems were only ever offered in high-end brands and SUVs and never diffused to more mainstream brands, station wagons, hatchbacks, or sedans," ABI said.

The firm points out that OEM rear-seat entertainment has primarily been targeted at small children. Therefore, rear-seat entertainment only reached an estimated 2.9 million in 2014. 

"Arguably, rear-seat entertainment never reached its full potential," ABI said.