Amazon conquered many houses Echo smart speakersproviding useful services such as connected home management and voice control. Despite their popularity, these devices are not yet I did not get the expected income for the company. Most users Use Alexa mainly for basic functionsLike setting timers or asking simple questions, these do not generate additional revenue for Amazon.
In fact, these uses do not encourage the purchase of additional servicesThis limitation on the use of advanced features, such as subscriptions to Alexa Premium skills or paid music streaming services. reduces profitability potential Echo devices for Amazon.
Amazon Invests in Premium Subscription to Stop Alexa from Losing Money
To address this, Amazon plans to launch “Extraordinary Alexa,” an enhanced version of its voice assistant with advanced features based on artificial intelligence. This version will be available for: Monthly subscription between $5 and $10 (approximately 4.50 to 9 euros). This paid service aims to diversify Amazon’s revenues in addition to its existing offerings.
Amazon’s innovations “Alexa ExtraordinaireIn a market where competition is fierce, it is necessary to stand out. Companies like Google with its Gemini AI and Apple with its ChatGPT integrated into Siri have already launched these services, often at no extra cost. Therefore, Alexa’s advanced features will need to prove their added value to convince users to subscribe to this new subscription.
Amazon is banking on this new version of Alexa to convert its free users into paying subscribers, a strategy that could be crucial for: compensate for material losses the trouble experienced by the company’s smart devices sector 25 billion dollarsor around €22.7 billion between 2017 and 2021. “Alexa the Extraordinary” is scheduled to launch later this year, and its success will determine the future of the company’s connected devices division.
Source : Wall Street Journal
