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 subscription fee, retroactive to user purchases, to access certain features.

Amazon's response

If applicable, add the proposed solution to the issues by the company.


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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

Generally, consumer and analyst sentiment around has been mixed. Comments on this[4] Reddit post, among others, have been generally negative with users stating their discontent of paying Amazon to use a service they already bought.

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” [5] .

- 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. [6]

- 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. [7]

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".
  4. "Amazon wants to charge a subscription fee for Alexa eventually | Ars Technica".
  5. "Amazon Unveils AI-Driven Alexa+ to Compete with ChatGPT". 2025-02-26.
  6. Tuohy, Jennifer (2025-08-01). "Amazon eyes ads and upcharges for Alexa Plus".
  7. "Buy Rating on Amazon: Anticipating Revenue Growth from Premium Alexa Subscription and Margin Improvement". 2024-06-24.