Company / division: Amazon
Ecobee Launches Thermostat with Alexa (May 3, 2017)
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YouTube and Netflix Dominate Teens’ Video Viewing (May 2, 2017)
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Alexa Gets Speech Synthesis Tools for Developers to Help it Sound More Human (May 1, 2017)
Amazon is giving developers of Skills (apps) for Alexa new speech tools which should help them create interactions where the assistant sounds more human through the use of pauses, different intonation, and so forth. Amazon already uses these for Alexa’s first party capabilities, but third party developers haven’t had much control over how Alexa intones the responses in their Skills. This should be a useful additional developer tool for adding a bit more personality and value, but I wonder how many developers will bother – new platform tools like this are always a great test of how engaged developers are and how committed they are to creating the best possible experience rather than just testing something out. I’ve argued from the beginning that the absolute number of Skills available for Alexa (now at 12,000) is far less meaningful than the quality of those apps, and many of them are very basic or sub-par, likely from developers trying something out as a hobby without any meaningful commitment to sustaining or improving their apps. On the other hand, the smaller number of really serious apps for Alexa should benefit from these new tools.
via TechCrunch
★ Amazon Reports Slightly Slower Growth, Lower Operating Margins in Q1 2017 (Apr 27, 2017)
Amazon today announced its earnings for Q1 2017. Revenues grew strongly, but as with Q4 the rate of growth was slower than it had been for most of last year. Operating margins also continue to fall, driven by a slight dip in AWS margins in the last couple of quarters and continued big losses in the International business. The feeling I have is that e-commerce growth is just a little slower than Amazon anticipated – several metrics it normally keeps within very narrow bands have crept out in the past couple of quarters. I take that as a sign that retailers like Walmart are fighting back more effectively, sacrificing margins in pursuit of higher growth, and that this is affecting Amazon’s growth rate (though it still remains far higher than any other retailer’s organic growth, online or otherwise). Following some additional disclosure in its 10-K last quarter, Amazon has now shaken up its reporting segments for the non-AWS business and provides a little more visibility into its subscription and fulfillment businesses. The subscription business – mostly Prime but also other smaller businesses like Audible – generated 5% of revenue. Fulfillment and related businesses generated 18% of revenues, and the growth of that third-party seller business on Amazon, which now accounts for 50% of units sold, continues to be an important driver of higher gross margins along with AWS. From the 10-K, I estimated that Amazon had roughly 70 million Prime subscribers at the end of last year, and though the quarterly numbers are a little harder to pass it looks like it may have seen decent growth this past quarter too. Prime continues to be one of Amazon’s greatest strengths as a driver of stickiness and revenue growth.
via Amazon
Amazon Readying Launch of Echo Device with a Screen (Apr 27, 2017)
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Amazon – Like Pandora – is Hoping Country is the Key in Music (Apr 26, 2017)
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★ Amazon Announces Echo Look, Which Adds a Camera and Fashion Advice to Echo for $20 (Apr 26, 2017)
Amazon has announced a new device in its Echo family called the Echo Look, which assumes a different form factor, adding a still and video camera to features of the standard device for $20 more. For now, the focus is fashion advice: the camera can take full-length photos or videos of the user, acting like a full-length mirror at a basic level but also offering fashion advice through machine learning tools trained by fashion experts. I say for now, because once you have a camera in an Echo device it could be used for many other things too – indeed, when reports and pictures of this device first surfaced people assumed it was a security camera, and there’s really no reason why it couldn’t be. And several of these devices together could be very useful for motion sensing and other tasks as part of a smart home system over time too. But Amazon’s also smart to start specializing the Echo a little, with a particular focus on women, as I would guess a majority of sales of Echo devices to date have gone to men. I’d bet we’ll see other more specialized devices in time, but also other uses for this camera as it gets software updates. And this also starts to get at a real business model for Echo, which so far hasn’t done much to boost e-commerce sales but could now drive clothing revenue through sales of both third party apparel and Amazon’s own growing line. And what Amazon learns from the Look and its associated app can be fed back into the core Amazon.com clothes shopping experience too, improving recommendations in the process. But of course all this comes with downsides: not only do you have a device in your home that’s always listening, but you now have a device with a camera, which could feasibly be hacked remotely to take pictures or video of you. And Amazon will store the images it captures indefinitely, creating a further possible source of problems down the line.
via The Verge
★ Amazon Launches Subscription Hub for Content, News, Apps and More (Apr 24, 2017)
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★ Amazon Has A Team Working on How to Leverage Autonomous Driving (Apr 24, 2017)
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Amazon Bans Almost All Ads in Alexa’s Third Party ‘Skills’ Apps (Apr 21, 2017)
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★ Amazon Scales Alexa Back-End by Opening Lex Voice and Text Service to All Developers (Apr 19, 2017)
So much of the focus of coverage of voice assistants and interfaces is on the dedicated consumer products which use them, and that’s natural: these are the most visible and measurable signs of a company’s success or failure in this space. And yet the scale of those dedicated voice product is still very small relative to smartphones, which carry their own voice assistants. And scale is vital if these products are to improve, because they require lots and lots of training to get better, and so the more users there are training them, the better they become. As such, I suspect the next phase of competition in this space is going to be about developer voice platforms at least as much as it is about first-party hardware and software, and we’re starting to see signs of this from the big companies in the space, including Google and Amazon. Today, Amazon announced that Lex, which is a back-end service that combines many of the technologies behind Alexa, is opening up to all developers. But critically, this isn’t just a voice platform – it supports text and voice processing, which means that many of the developers might use it in chat bots or other similar environments that have nothing to do with voice but still help train Amazon’s natural language processing tools. Google is doing similar things with its own voice processing technology, but it’s doubtful whether Apple will ever open its voice tools up in the same way. That’s not a huge deal, because it has massive scale in voice on smartphones alone, but it may make a bigger difference over time as these other platforms benefit not only from growing first party scale but increasing third party adoption and use too.
via Amazon
Amazon Isn’t the Only Reason US Retail is Suffering (Apr 18, 2017)
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Amazon to Provide its Echo Mic Array and Related Technology to Select Hardware Partners (Apr 13, 2017)
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Amazon FreeTime Tries to Help Parents Re-Engage with Neglected Kids (Apr 12, 2017)
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Burger King TV Ad Attempts to Trigger Google Assistant in Homes (Apr 12, 2017)
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Walmart providing discounts for customers who pick up online orders in store (Apr 12, 2017)
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Amazon’s Third-Party Sellers Hit By Hackers – WSJ (Apr 10, 2017)
The bigger you get in almost any technology business, the more hackers will try to find ways to infiltrate that business and skim off some of the money. That now appears to be happening at substantial scale with Amazon’s third party sellers, many of which are likely relatively unsophisticated from a computer security perspective. The hackers are engaging in at least two separate behaviors, in some cases merely redirecting sellers’ proceeds into different bank accounts, and in others taking over dormant seller accounts and posting fraudulent products. Though it sounds like Amazon is making both buyers and sellers whole, it could be doing more to prevent the issues from occurring in the first, place, not least by requiring two-factor authentication for seller accounts. Though there’s often reluctance to force 2FA on users in the consumer space, these aren’t consumers, and the amounts of money involved make that an entirely sensible precaution. Given how much of Amazon’s total sales goes through third party sellers at this point, this could become a massive issue if it doesn’t do more to lock things down.
via WSJ
Google Home Vs. Amazon’s Alexa: 54 Questions, 1 Clear Winner – Forbes (Apr 7, 2017)
This is a fun little comparison done by a user in the UK of the ability to the two major home smart speaker units to answer 54 questions. Google Home wins in the end, with 32.5 answered correctly, to 19.5 for Echo/Alexa. The questions were a mix of simple and challenging, and the user was in the UK and asked quite a few UK-specific questions, taking advantage of the fact that both devices recently launched there. But it’s a great illustration of both how Google has the existing skillset to do really well in this category, and also the fact that all these assistants have some way still to go to answer all the questions users might reasonably expect them to deal with.
via Forbes
Google Plots New Hardware to Take on Echo — The Information (Apr 5, 2017)
What do you do if you have two separate hardware products for the home which are selling modestly but not fantastically and have some common elements? You combine them, of course, and so Google is apparently considering a future device which would bring the features of its Home and WiFi devices together in a single unit. That would lower the combined cost and depending on the price potentially also increase the attractiveness relative to either the standalone Home or WiFi devices as they exist today. Given that a single unit of either item today costs $129, it’s entirely feasible that Google could combine the two in a new unit that would still be price competitive with the Amazon Echo while offering a lot more functionality, so this is an interesting angle. But Google Home’s main challenges continue to be less about price and more about name recognition and distribution – the Echo captured the early interest in this space and quickly became the market, heavily leveraging Amazon’s retail distribution channel, while Google continues to struggle to get adoption for its version. Though this move may help spur sales, I don’t think it’s going to lead to the kind of step change Google needs to be a more meaningful competitor.
via The Information
NFL and Amazon Reach One-Year Streaming Deal for About $50 Million – WSJ (Apr 4, 2017)
This is an interesting outcome to this bidding process, with perhaps the most interesting part being the price to be paid by Amazon, which is five times what Twitter paid for the equivalent rights last year. I had wondered if the NFL was going to let the winning broadcaster sell more of its own ads, which would have justified a higher price, but as that doesn’t seem to be the case it looks more likely that the higher price was the result of a bidding war. If I recall correctly, Twitter was said not to have been the highest bidder last time around, so it’s possible both that Amazon (and possibly others) bid more and that the NFL decided to go with the higher bidder this time. From Amazon’s perspective, the deal certainly fits with two existing initiatives: its increasing focus on TV and in particular live TV, and its slow but steady push into advertising. The big issue Amazon has with TV at this point is that its efforts are spread over two very different brands and channels, namely Twitch and Prime. At some point, the aggregation strategy that’s served its Channels business well will likely make sense in live TV too. But broadcasting live TV is a great opportunity to market Amazon hardware products to a captive video audience as well.
via WSJ