Amazon to charge non-Prime consumers to use Alexa

2026-03-15T18:50:34Z

81.27.86.66: fixed spelling of author's name as stated in article by-line

{{Incomplete|Issue 1=about half finished}}
{{IncidentCargo
|Company=Amazon
|StartDate=March 2025
|EndDate=
|Status=Active
|ProductLine=
|Product=Alexa
|ArticleType=Service
|Type=
|Description=
}}
[[Amazon]] has introduced Alexa Plus (Alexa+), an upgrade to the Alexa voice assistant that uses generative artificial intelligence.<ref name=":0">{{Cite web |last=Panay |first=Panos |date=26 Feb 2025 |title=Introducing Alexa+, the next generation of Alexa |url=https://www.aboutamazon.com/news/devices/new-alexa-generative-artificial-intelligence |url-status=live |archive-url=http://web.archive.org/web/20260126202916/https://www.aboutamazon.com/news/devices/new-alexa-generative-artificial-intelligence |archive-date=26 Jan 2026|access-date=1 Dec 2025 |website=Amazon}}</ref> The Alexa voice assistant is also available on Amazon's range of smart speakers, such as the [[wikipedia:Amazon_Echo|Amazon Echo]].

==Background==
Until 2025, Amazon Alexa had been using a revenue model centered around the sale of [[Internet of things|Internet of Things]], with over half a billion units sold.<ref>{{Cite web |last=Garfinkle |first=Alexandra |date=2023-05-17 |title=Amazon has sold more than 500 million Alexa-enabled devices, drops 4 new Echo products |url=https://finance.yahoo.com/news/amazon-has-sold-more-than-500-million-alexa-enabled-devices-drops-4-new-echo-products-140013808.html |url-status=live |archive-url=https://web.archive.org/web/20250724093539/https://finance.yahoo.com/news/amazon-has-sold-more-than-500-million-alexa-enabled-devices-drops-4-new-echo-products-140013808.html |archive-date=24 Jul 2025 |access-date=1 Dec 2025 |website=Yahoo! Finance}}</ref> In March of 2025 they introduced an Alexa+ subscription model to mitigate the $25 billion USD loss from Alexa devices over four years (2017-2021).<ref name=":0" /><ref>{{Cite web |last=Harding |first=Scharon |date=2024-07-23 |title=Alexa had “no profit timeline,” cost Amazon $25 billion in 4 years |url=https://arstechnica.com/gadgets/2024/07/alexa-had-no-profit-timeline-cost-amazon-25-billion-in-4-years/ |url-status=live |archive-url=http://web.archive.org/web/20260222210237/https://arstechnica.com/gadgets/2024/07/alexa-had-no-profit-timeline-cost-amazon-25-billion-in-4-years/ |archive-date=22 Feb 2026|access-date=1 Dec 2025 |website=Ars Technica}}</ref><ref>{{Cite web |last=Harding |first=Scharon |date=26 Sep 2024 |title=Amazon wants to charge a subscription fee for Alexa eventually |url=https://arstechnica.com/gadgets/2023/09/amazon-wants-to-charge-a-subscription-fee-for-alexa-eventually/ |url-status=live |archive-url=http://web.archive.org/web/20251023114139/https://arstechnica.com/gadgets/2023/09/amazon-wants-to-charge-a-subscription-fee-for-alexa-eventually/ |archive-date=23 Oct 2025|access-date=1 Dec 2025 |website=Ars Technica}}</ref> In March of 2025, Amazon Echo [[Amazon Echo changes terms of voice usage|changed the terms]] of voice usage, removing the "Do Not Send Voice" feature at the same time as Alexa's capabilities were expanded with generative AI features.<ref>{{Cite web |last=Arntz |first=Pieter |date=18 Mar 2025 |title=Amazon disables privacy option, will send your Echo voice recordings to the cloud |url=https://www.malwarebytes.com/blog/news/2025/03/amazon-disables-option-to-store-echo-voice-recordings-on-your-device |url-status=live |archive-url=http://web.archive.org/web/20251227092646/https://www.malwarebytes.com/blog/news/2025/03/amazon-disables-option-to-store-echo-voice-recordings-on-your-device |archive-date=27 Dec 2025|access-date=1 Dec 2025 |website=Malwarebytes}}</ref><ref>{{Cite web |last=Harding |first=Scharon |date=17 Mar 2025 |title=Everything You Say to Your Echo Will Soon Be Sent to Amazon, and You Can’t Opt Out |url=https://www.wired.com/story/everything-you-say-to-your-echo-will-be-sent-to-amazon-starting-march-28/ |url-status=live |archive-url=https://web.archive.org/web/20250325015954/https://www.wired.com/story/everything-you-say-to-your-echo-will-be-sent-to-amazon-starting-march-28/ |archive-date=25 March 2025 |access-date=1 Dec 2025 |website=Wired}}</ref>

==Adding a subscription cost==
Amazon has rolled out it's "Alexa+" subscription model, costing non-Prime users $19.99USD per month to access and use their Alexa devices, in comparison to the $14.99USD monthly cost of an Amazon Prime subscription.{{Citation needed|date=1 Dec 2025}}

This change comes at a time where many companies are [[List of products and services with post-purchase license change|adding a subscription fee, retroactive to user purchases]], to access certain features.

== Amazon's Response ==
{{Update needed|date={{subst:December}} {{subst:2025}}}}

==Consumer Response==
Consumer and analyst sentiment around has been mixed.{{Citation needed|date=1 Dec 2025}}

===Analyst Reactions===

*Tom Forte of Maxim Group sees Alexa+ as Amazon's shot at challenging ChatGPT rather than improving Alexa. If executed well, “maybe we’re talking less about OpenAI vs. Anthropic and more of Alexa vs. ChatGPT.”<ref>{{Cite web |date=2025-02-26 |title=Amazon Unveils AI-Driven Alexa+ to Compete with ChatGPT |url=https://www.gurufocus.com/news/2716607/amazon-unveils-aidriven-alexa-to-compete-with-chatgpt |url-status=live |access-date=1 Dec 2025 |website=GuruFocus |archive-url=https://web.archive.org/web/20260206081722/https://www.gurufocus.com/news/2716607/amazon-unveils-aidriven-alexa-to-compete-with-chatgpt |archive-date=6 Feb 2026}}</ref>

*MarketWatch & TheVerge states that the Alexa+ model is bolstering Amazons' ability to monetize a platform they have lost billions on via subscription tiers and targeted ads, recognizes that there could be a larger play here to make Amazon a big game contributor to the AI/LLM arms race. <ref>{{Cite web |last=Tuohy |first=Jennifer Pattison |date=2025-08-01 |title=Amazon eyes ads and upcharges for Alexa Plus |url=https://www.theverge.com/analysis/717763/amazon-alexa-plus-ai-ads-revenue-subscription-plans?utm_source=chatgpt.com |url-status=live |archive-url=https://web.archive.org/web/20250802232240/https://www.theverge.com/analysis/717763/amazon-alexa-plus-ai-ads-revenue-subscription-plans |archive-date=2 Aug 2025 |access-date=1 Dec 2025 |website=The Verge}}</ref>

*Business Insider suggests Amazon’s multi-year Alexa restructuring and layoffs set the stage for a premium tier. Premium Alexa could unlock significant new revenue if a fraction of users subscribe. <ref>{{Cite web |date=2024-06-24 |title=Buy Rating on Amazon: Anticipating Revenue Growth from Premium Alexa Subscription and Margin Improvement |url=https://markets.businessinsider.com/news/stocks/buy-rating-on-amazon-anticipating-revenue-growth-from-premium-alexa-subscription-and-margin-improvement-1033500019?utm_source=chatgpt.com |url-status=live |archive-url=https://web.archive.org/web/20251201105724/https://markets.businessinsider.com/news/stocks/buy-rating-on-amazon-anticipating-revenue-growth-from-premium-alexa-subscription-and-margin-improvement-1033500019 |archive-date=1 Dec 2025 |access-date=1 Dec 2025 |website=Business Insider}}</ref>

==See also==

*[[Amazon Echo changes terms of voice usage]]
*[[Amazon]]

==References==
{{reflist}}

[[Category:Amazon]]
[[Category:Articles requiring expansion]]
[[Category:Incidents]]

Consumer Rights Wiki - User contributions [en]

Amazon to charge non-Prime consumers to use Alexa