December 16, 2019
For years now Amazon has been attempting to put voice-activated Alexa software in every home via its Fire TV streaming media players and Echo speakers and earbuds.
Now the e-commerce giant wants to increase monetization of original content distributed through Alexa.
Amazon reportedly commands 30% in revenue from every third-party device incorporating Alexa software. The company would like to increase so-called “skill revenue” from content delivered via Alexa that includes music, video, news and podcasts.
The company has partnered with Spotify for music and is eyeing news and other informational-type content that would be sold through Alexa.
Amazon generated about $1.4 million in Alexa “skill” revenue in 2019 — about 25% of the forecasted $5.5 million, according to The Information, which cited sources familiar with the situation. “Skill” revenue refers to monies generated by add-on features applied to Alexa software from third parties.
For example, Amazon just introduced its first celebrity voice, Samuel L. Jackson, where consumers — for 99 cents — can hear Jackson’s voice on select commands. Google Assistant offers actress Issa Rae and singer John Legend to their voice-activated Nest devices.