Amazon (AMZN.O) is planning a major revamp of its decade-old money-losing Alexa service to include a conversational generative AI with two tiers of service and has considered a monthly fee of around $5 to access the superior version, according to people with direct knowledge of the company's plans.
Alexa was never supposed to make money by itself. It was supposed to do two things, collect information and lower the barrier to buying things.
They must have either collected enough data to lower the value of collecting any more, or they have realized that people got over the novelty of asking Alexa to order more dog food.
My guess is the latter, because buying anything from Amazon now requires 15 minutes of research to make sure it's actually what you want and not at some ridiculous marked up price. I wouldn't trust Alexa to pick the best result on the first try.
Between inserting ads into Amazon Video, scaling back on fast delivery, and this it looks like Amazon has maxed out their growth and are scaling back on their loss leaders that were used to get where they are.
A big appeal of assistant devices was the barrier to entry was extremely low. So low that they could be purchased in multiples and given as gifts and were easy for the recipients to set up and use. So low that Alexa integration was common on many types of devices at many pricepoints.
Setting one up and being asked to pay a monthly sub might not go so well. People are getting burnt out of constant subscriptions bleeding them dry. I really don't know how many would be willing to pay for something that was once free and was basically taken away from them.
this is also not including the growing amount of people that are goddamn sick and tired of hearing about AI constantly being shoved into everything
I never used to understand why Picard and the crew got upset with Data's long winded explanations until I got a Google Home. Now I understand very well.
People are missing the point. This was ALWAYS the plan. Get Alexa in hundreds of thousands of homes and get everyone to used to using it. Than charge money.
Even if only a quarter of the users pay, they'll make a ton of money.
I am quite interested in what Google and Apple will do about their voice assistant devices. The New Siri appears to be quite useful, if it can actually do what we saw in WWDC. But Apple hasn't mentioned anything about the HomePods.
Google Home/Nest has been stuck with the dumb version of Google Assistant, and has been getting worse. It has no integration with any other Google services, and there was no mention of Home/Nest in Google I/O.
If either HomePod or Nest gets released without requiring subscriptions, I might move away from Alexa devices.
I'd pay $20 or $30 a year, especially if it meant they'd actually, like, improve the service (which has been almost 100% the same for me for the last 4 years or so).