GenAI as customer lock in

Alexa Plus is $19.99 per month on its own or free for Amazon Prime members — a better deal, considering Prime costs just $14.99 per month or $139 per year.

Prime is the digital version of Costco or Sam’s Club. People pay a membership fee with the expectation of receiving more value through savings. Then a bunch of secondary benefits sweeten the deal.

By paying a fee, members are more likely to spend money to justify the initial fee to themselves.

Amazon’s primary retail customer is Prime. Everything else funnels there.

via The Verge