Amazon CFO: Voice-Activated Alexa a ‘Positive Surprise’

Amazon hit a fiscal Q4 home run in North America. One of the revenue drivers was the Echo Dot featuring voice-activated Alexa software.

With more than 30,000 skills, Amazon embeds Alexa in more than 4,000 smart-home devices from 1,200 third-party CE brands.

Proprietary Fire TV Stick and Echo were the best-selling products in 2017 across all of Amazon. Both devices enable users to search, stream and buy movies and TV shows using voice commands. Echo can now – finally – also send text messages.

“We are very happy with the results of Alexa, it’s a very positive surprise for us,” CFO Brian Olsavsky said on the Feb. 1 fiscal call.

The executive said Alexa use on Fire TV is up 900% from a year ago, with music consumption up 300% over the winter holidays.

“That’s far exceeding our expectations,” Olsavsky said. “The relationship with external companies is actually helping to accelerate the adoption of Alexa with customers.”

Separately, Amazon wants to emulate North American success internationally, notably in India, which includes 17% of the world’s population, or 1.32 billion people.

The e-commerce behemoth bowed Prime India in July 2016, followed by the global launch of Prime Video in December 2016. Olsavsky said Prime adoption in India was the fastest in Amazon’s history, featuring more than 25 million local products.

Amazon also launched Prime in the Netherlands and Luxembourg, adding the ability for customers in Belgium to shop in Dutch.

Finally, Amazon this year launches second seasons of “Goliath” and “Sneaky Pete,” followed by the third season of “The Man in the High Castle,” the fourth season of “Bosch,” and “Mozart in the Jungle.” Other original content includes new episodes from “The Tick,” “Tom Clancy’s Jack Ryan,” and “The Romanoffs.”

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