With smart speaker ownership on a post-pandemic plateau, Amazon has reportedly picked October to unveil a significantly upgraded version of its Alexa voice assistant. The time frame could make for a merry Christmas for radio, especially for in-home reach.
According to files obtained by the Amazon-owned Washington Post, the Alexa overhaul – codenamed “Banyan” and “Remarkable Alexa” – will be revealed ahead of an expected Christmas push for Echo device sales.
Echo smart speakers have become a major platform for AM/FM in the home, especially as over-the-air radio ownership declines. Cumulus Media’s 2023 Audioscape report shows that 40% of smart speaker owners no longer have a traditional radio at home, up from 28% in 2018, highlighting the increasing role of smart speakers in providing access.
Within the past few years, AM/FM streaming on smart speakers increased slightly from 23% in 2021 to 26%, even with decreasing sales.
Of course, any in-home expansion relies on consumers wanting to bring “Remarkable Alexa” into their abodes. The revamped assistant will feature advanced AI capabilities, including personalized news summaries and improved conversational abilities to make Alexa a more proactive and integral part of users’ daily lives. The Post reports the tool will also incorporate advanced shopping tools designed to boost e-commerce sales.
However, access to these enhanced features will require a paid subscription, according to internal talk. While the exact pricing details remain undisclosed, Amazon is considering a monthly fee of up to $10.
The Wall Street Journal reported earlier this year that the devices business has incurred tens of billions of dollars in losses due to development costs and limited revenue generation. In the audio sphere, this has maybe been most evident in the end of Spotify’s “Car Thing” device, which will be bricked in December.
With aggressive promotion and incentives for users to adopt new Amazon smart speakers likely, it could be a good time for stations to sharpen their Alexa skills and promote usage for listening.
