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.
This is going to flop.
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