Amazon to Charge Non-Prime Consumers to Use Alexa
| Basic information |
| Founded
|
1994 |
| Type
|
Public |
| Industry
|
Conglomerate |
| Official website
|
www.amazon.com |
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Consumer-impact summary
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People have bought into the Internet of Things (IOT) over many years and have purchased both control devices and controlled devices and until now Amazon has been happy collecting the device profits as payment for the IOT services they offered through their Alexa devices. The problem Amazon created was they wanted to get at consumer data so instead of letting Alexa actually just turn devices off/on they kept trying to grow Alexa services to gain more undisclosed customer snooping rather than limiting it to controlling devices.
Amazon is rolling out what they are calling Alexa+ just like the streaming channels did some time ago when they saw cutting-the-cord as their new profit centers full of consumers who would jump at the chance to not miss their favorite show by paying subscription based fees to not only access this week's show but being able to gain access to the reruns. Turns out there's more allegience to the show than the channels and without providing the old tried and true method of providing advertised TV entertainment not everyone has been willing to pay for the 24 hour-a-day Suzie Homemaker channel.
Alexa+ will be free to Prime members although I'm not sure what the "+" actually gets them. For non-Prime members Alexa+ will cost $19.99 a month an oddly higher fee than buying into their $14.99 per month Prime membership. I would expect this might increase Amazon's brand loyalty getting Alexa consumers to cough up for a Prime subscription or maybe it works against them?
If Amazon can't pull this off it's a change that could ripple through the related markets not only impacting Amazon and the Alexa brands but the manufacturers of devices that work with Amazon's Alexa could very take a significant hit. There was just an issue this past week (06/2025) with Sengled, a company that makes Alexa controlled lightbulbs, where the devices suddenly stopped working. I'm guessing the dispute was over Amazon keeping all that money for themselves?
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