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Amazon Mulls $5 to $10 monthly price tag for unprofitable Alexa service, AI revamp (www.reuters.com)

submitted 5 months ago by [email protected] to c/technology

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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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[–] [email protected] 20 points 5 months ago (2 children)

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.

[–] BarbecueCowboy 12 points 5 months ago

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.

[–] [email protected] 3 points 5 months ago

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.