You are used to forking over money once to buy a TV set, smartphone, computer or smart speaker and that’s it.
By Shira Ovide
Amazon plans to introduce a remodeled version of Alexa next month with artificial intelligence features and charge you up to $10 a month for it. It would be first time in Alexa’s 10-year history that you will be asked to pay directly for the voice assistant. (Amazon founder Jeff Bezos owns The Washington Post.)
Samsung executives have said they could consider a subscription fee for AI capabilities in smartphones that cost up to $1,900.
And Apple’s half-baked AI features for the newest iPhone operating system? Apple is contemplating charging for them down the road, Bloomberg News has reported. (Apple said Monday that its newest iPhone operating system will be free. The company declined to comment further.)
Paying for the internet features in your devices isn’t new, but it’s been mostly limited to lesser used gadgets or optional add-ons such as the Oura health-tracking ring, Samsung TV set art (really), car safety services and iCloud storage.
What’s changing is the willingness of companies to charge you for features that are fairly essential to gadgets used by many millions of people. You might not like it, but it’s coming.
Why more gadgets charge you a subscription fee
There’s a cliché in the technology industry: Hardware is hard.
It costs a lot of money to develop a new phone, video camera or face computer before it hits store shelves. And if the device is unpopular or the company can’t persuade you to pay enough for it, the company might be toast.
But what if you paid for the product and a monthly fee, maybe forever? That changes the financial equation for companies — and you. Some examples:
- The $170 Hatch alarm clock offers a $4.99 monthly subscription. There’s a home kitchen sous vide cooker with a subscription app. Printer ink is sold as a subscription. (It’s bad.)
- If you buy Peloton home exercise equipment, you are probably also paying a subscription for the company’s online fitness classes. Tesla is among the car companies with subscription fees for driver assistance features.
