Amazon is considering introducing advertisements to Alexa+ during multi-turn conversations to drive revenue and assist with user discovery. CEO Andy Jassy hinted at a potential subscription model that could include ad-free options. Currently, Alexa+ costs $19.99 monthly or $14.99 for Prime members. The service recently began rolling out after overcoming technical difficulties, aiming to provide a more human-like experience with improved functionalities. Despite numerous Alexa-enabled devices in use, Amazon's Devices & Services unit reported significant financial losses, prompting the exploration of new income strategies.
Andy Jassy mentioned in a recent earnings call that as people engage in more multi-turn conversations, opportunities for advertising could emerge to aid discovery and generate revenue.
Alexa+, priced at $19.99 per month, may see the introduction of an ad-free subscription tier amidst speculation about advertising in the service.
Despite there being 500 million Alexa-enabled devices, Amazon's Devices & Services unit lost $25 billion from 2017 to 2021, indicating a strong motivation to explore new revenue avenues.
Following a challenged development process, Alexa+ launched with enhanced features aiming for a more human-like interaction compared to its predecessor.
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