Amazon's plan to launch a paid version of Alexa faces technical issues and internal politics.
Amazon is revamping its Alexa voice assistant as it prepares to launch a new paid subscription plan this year, according to internal documents and people familiar with the matter. But the change is causing internal conflict and may lead to further delay.
True but the problem is that they see 1,000,000s of people using the free version and think they are leaving money on the table by not charging and assume ~50% will happily pay for it when the conversion rate from free to paid is usually closer to 1% than it is to 50%.
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It works sometimes, when the thing is genuinely useful.
Or addictive. The first hit’s always free! Get people hooked on Alexa and then tell them it actually costs $10/month to turn your lights off
True but the problem is that they see 1,000,000s of people using the free version and think they are leaving money on the table by not charging and assume ~50% will happily pay for it when the conversion rate from free to paid is usually closer to 1% than it is to 50%.