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
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.
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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.
Amazon never could figure out how to make that profitable on it's own
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 that is a real loss. Really, an Alexa that didn't require a personalized amazon account could still be huge if they could figure out how not to have to justify the costs of running the servers. I think that unwillingness to let Alexa be just a voice assistant is the key roadblock. In a similar vein, Alexa for business could have been a really big deal too if they could have worked it out a bit faster but now I think interest has mostly died out before it had a chance to be adopted.
I'm not a huge fan of the company and I think it's a coin flip as to whether they would just completely screw it up, but I wonder what would have happened if someone like Crestron had taken a real interest instead of just half-assing an integration.
Imagine if most new houses came with “Alexa” switches and electric plugs.
Oh boy a bunch of added expense to get the light switches swapped out with ones that don't spy on me.
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.
This. Running Home Assistant on literally anything stronger than a raspberryPi means you can automate damn near anything. And yea, it might be a pain in the ass to setup, but once it's done it basically runs itself.
And it's infinitely, overwhelmingly better than than asking Google or Alexa to do any of it.
I have a bunch of wireless light switches all over the house, it's stupidly convenient once you stop thinking they have to be stuck in thy wall.
Got a bunch of Google home minis I use for smart lights and music. Do you know if it's possible to jailbreak/degoogle them to use with my own setup?
Jailbreak no, but you can sync them with home assistant and run them through thst as a bridge. Opens up a lot more flexibility in how you want to use it.
Is it much different from Google home? Seems similar from what I could tell from a quick glance.
Think of it like a connective layer. You will still need to run your Home stuff through Google to function best, but you can then have it forward its actions and commands to fake listening devices on your network, that can make it work with anything you like, or do more than that.
It's powerful. I haven't delved fully into it yet, but it's also a great way to marry various smart home garbage together without being locked into a system. Use zigbee, z wave, matter, hue, and wifi blubs and devices all together seemlessly.
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 :)
I wouldn’t trust Alexa
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.
Won't keep fake reviews off their platform. It's not a matter of ability, but of will.
So frustrating.
Can they prevent review fraud without requiring SSNs and background checks and more? (High-dollar item manufacturers could always pay randos to buy their items and leave 4-5 star reviews, right?)
Amazon could kill MRJHABCU and ANWKCB and PPQHZQS brands that give themselves 5000 positive reviews overnight… overnight.
But then the remaining products, wouldn’t they get review frauded real good?
It's true you will never get rid of all of it but, just like crime, basic enforcement is a deterrence. They know who's buying, they know where they're shipped, they have a fair idea if they're returned. Just requiring reviews to be from purchasers after they've received the product, removing positive reviews for returns without replacement (or flagging them as returned), and a few other steps would make fake reviews either very expensive or very expensive for the results.
The fact is, Amazon makes most of their money on AWS, and I don't think they care to put in the real effort to make their marketplace trustworthy again. Without that, it will continue its downward spiral.
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.
I'm glad these devices have proved useful for people like yourself, even at the expense of your data. you take the bad with the good, as they say.
I'm guessing Alexa is going to see a massive upgrade and use their llama model as it's foundation, so the cost of running it is going to be a lot more.
I do agree it loses its novelty fairly quickly but that means people would be even less incentivized to buying a monthly subscription while also meaning the cost of running it would go lower as time goes on since people simply use it less.
I wouldn't be surprised if they come out with an Alexa+ version and keep the other one free. I also can't imagine the legal nightmare it would bring to tell people their devices are getting bricked if they dont pay monthly.