“OK Google, give everyone a Google Mini.” It is a small price to pay for world dominance.
The idea is not so far-fetched. Multinational investment bank Morgan Stanley analyst Brian Nowak wrote, “Google-parent Alphabet should spend $3+ billion to put an A$48 Google Mini in every U.S. (argueably global) home. It is a small price to pay to fend off Amazon.”
Now, it is not about asking Alexa or OK Google the time or temperature. It is about the bigger revenue streams that smart speakers can generate. And that it the point of this article.
“The growth of voice shopping combined with Amazon’s expected install base advantage could threaten long-term growth in Alphabet’s high-monetising retail search category. Like the mobile transition when Alphabet gave Android to OEMs and began paying Apple to power Safari search. We believe Alphabet should give away a Google Home Mini to every U.S. (arguably global) household,” said Nowak.
Amazon 101 – it’s huge!
Alexa is not so much a smart speaker as a gateway to Amazon services
- Amazon online store (and that is huge covering not only its products but third-party sellers)
- Woot (‘One Day, One Deal’ not dissimilar to Catch-of-the-Day)
- Shop Bop (trendsetters site)
- Quidsi (Wag.com [pet supplies], Soap.com [household needs], Diapers.com [baby supplies], and BeautyBar.com [cosmetics]
- Zappos (one of the world’s largest online shoe retailers)
- Prime Reading (e-books and Audible audiobooks)
- AbeBooks (tracks down rare, out-of-print books)
- Good Reads (a community of 40+ million ‘book junkies’ and in the top 350 most trafficked websites in the world)
- CreateSpace (content publishing and distribution for filmmakers, music artists and authors to publish their work and distribute it on demand)
- Prime Video (including TV/movie production and content rental and sale)
- Twitch TV (video gaming, including walkthroughs of video games, broadcasts of e-sports competitions and other gaming-related events)
- Double Helix Games (titles such as Killer Instinct and Silent Hill: Homecoming.)
- IMBd (Internet Movie Database provides information on television shows, movies, actors and producers)
- Alexa (a smart speaker business aimed at opening access to all Amazon ventures)
- Kiva Systems (Amazon Robotics and drone delivery technology)
- Whole Food Market (a potential alternative to major food retailers)
- Amazon Fulfilment/Distribution
- And many, many more
Amazon has no peer, at least in the U.S.
In the media segment, Amazon competes with media game-changer Netflix; Time Warner Cable; Apple iTunes; Google Play Store/Music/Youtube Video; and thousands of media producers.