Amazon ends bonus payments for Alexa developers
What's the story
Amazon has announced the discontinuation of its paid incentives for Alexa developers, marking the end of the Alexa Developer Rewards Program.
Initially reported by Bloomberg, the program is set to conclude by the end of June.
Alongside this, a similar initiative rewarding developers for using Amazon Web Services (AWS) in their Alexa applications will also be terminated.
This strategic shift comes as Amazon moves away from third-party applications or "skills" for its voice assistant, Alexa, due to generative AI's rise.
Developer impact
Impact on developers and future prospects
The Alexa Developer Rewards Program was initially introduced to assist developers in creating voice apps.
However, as per Amazo less than 1% of developers were actually utilizing this program.
Despite the termination of these initiatives, developers will continue to receive payments for in-app purchases made within their Alexa skills.
The company also mentioned new LLM-powered tools that will aid developers in building new experiences for Alexa.
Future vision
Vision for voice-first devices
Launched in 2017, the Alexa Developer Rewards Program was part of Amazon's broader vision to transform Alexa Skills into a thriving marketplace for a new wave of voice-first devices.
Developers who produced high-quality skills for Alexa and achieved engagement milestones in certain categories were rewarded with bonuses.
As the focus shifts toward AI assistants with generative AI capabilities, Amazon showcased an upgraded iteration of Alexa with ChatGPT-like AI features at its 2023 Devices and Services Event.
Financial shifts
Amazon's financial decisions and industry trends
Bloomberg notes that third-party apps were not generating substantial revenue for Amazon, leading to a decrease in funds allocated for Alexa developer payments in 2020.
This financial decision coincided with Amazon letting go of several hundred employees from its Alexa division last year.
In line with industry trends, Google also discontinued third-party voice apps for Google Assistant in 2022, indicating a broader shift in the tech industry's approach to voice assistants.