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Amazon to charge non-Prime consumers to use Alexa

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Amazon has introduced Alexa Plus (Alexa+), an upgrade to the Alexa voice assistant that uses generative artificial intelligence.[1] The Alexa voice assistant is also available on Amazon's range of smart speakers, such as the Amazon Echo.

Background

Consumers have widely embraced the Internet of Things (IoT) over many years, purchasing both control devices and controlled devices. Until 2025, Amazon had been pursuing a revenue model centred around the sale of their IoT units, culminating in sufficient sales, with over half a billion units sold[2], for the IoT services offered through their Alexa platform. However, this precedent was changed in March of 2025,[1] when Amazon sought to restrict consumer choice and sell more consumer data, and introduce an Alexa+ subscription model to make up for a $25 billion USD loss from Alexa devices over four years (2017-2021)[3]. In March of 2025, Amazon Echo 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.

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.

This change comes at a time where many companies are adding a usage subscription fee to already purchased devices, and reflects a broader change in sales models internationally. Ultimately, these changes pitch consumers to be able to functionally use less, or none, of devices that they have already purchased, decreasing actual consumer ownership of such devices.

Amazon's response

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Lawsuit

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Claims

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Rebuttal

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Outcome

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Consumer response

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See also

References

  1. ↑ 1.0 1.1 Panay, Panos (26 Feb 2025). "Introducing Alexa+, the next generation of Alexa". Amazon.
  2. ↑ Garfinkle, Alexandra (2023-05-17). "Amazon has sold more than 500 million Alexa-enabled devices, drops 4 new Echo products".{{cite web}}: CS1 maint: url-status (link)
  3. ↑ Harding, Scharon (2024-07-23). "Alexa had "no profit timeline," cost Amazon $25 billion in 4 years".
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