Amazon Mulls $5 to $10 monthly price tag for unprofitable Alexa service, AI revamp
Amazon Mulls $5 to $10 monthly price tag for unprofitable Alexa service, AI revamp
reuters.com
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.
Alexa has a tendency to give you the 'featured' product no matter how precisely and specifically you ask her for something. Even if you don't have to research and know exactly what you want, it's almost always easier to just go find your phone.
The real game changer for Alexa was always having a voice assistant that you can integrate with just about whatever you want that isn't tied to someone's phone. The idea of going into someone's house and just saying 'Alexa, turn on the kitchen lights' or 'Alexa, is it cold outside?' is where the Alexa magic lies, but Amazon never could figure out how to make that profitable on it's own, just doesn't contribute to the business case.
They are so dumb. Every house could use their products, they just need to charge normal prices. Everyone has light switches in every room. Imagine if most new houses came with "Alexa" switches and electric plugs.
They tried to make money on a few hobbyists who could set it up for themselves. They needed to go after the construction market. Charge half of what they were charging and sell a ton to every house in America. It's not an iPhone. It's a basic device to turn on the lights.
You're right, but the reason that hasn't caught on is that talking to your "smart" house is stupid. You can't possibly program every possible command or situation, and telling Alexa to dim the lights in your kitchen to 40% is slower than using a dimmer switch. Actual smart homes are automated to the point where you don't need to talk to your room.
I’ve had a few Alexas over the past five years or so, and I honestly don’t think I’ve ever used any of them to actually buy anything. They’re all glorified Bluetooth speakers for my phone.
Alexa makes an excellent weatherperson :)
Trusting Alexa/Amazon is insane. It wasn't insane X years ago (your value of X will vary), but it definitely is insane now
This is just it, it can barely handle manage my lighting system. How am I going to trust it to make purchases? Brought to you by the same people who can't keep fake reviews off their platform.
As someone with ASD, GAD, and MDD (all diagnosed if it matters), smart home devices are an essential service to me. I can quickly set redundant reminders to help me with personal routines, add stuff to my shopping and to-do lists, and quickly get my lights and music set to what I need them to be when I am experiencing an anxiety episode. I definitely understand that my data is good and harvested at this point, and I don't trust them to have done anything good with it. But these dots have made my life work since I bought my first one, and they've significantly reduced the anxiety I used to be riddled with.