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Amazon's $2.5B FTC Settlement Spotlights Subscription Traps as Smart Speaker Market Booms

Amazon's hefty FTC settlement shines a light on subscription traps. Meanwhile, the smart speaker market is booming, with Amazon at the helm, and companies are fighting for dominance in the connected home.

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1 min read
This picture is clicked inside the room. In this picture, we see a table on which laptop, speaker,...
This picture is clicked inside the room. In this picture, we see a table on which laptop, speaker, monitor, keyboard, ball, mouse, scanner and papers are placed. In the left bottom of the picture, we see a table on which electronic goods are placed. Behind that, we see a wall on which charts and posters are pasted.

Amazon's $2.5B FTC Settlement Spotlights Subscription Traps as Smart Speaker Market Booms

A recent $2.5 billion settlement between the Federal Trade Commission (FTC) and Amazon has highlighted the risks of consumers feeling trapped in subscriptions. Meanwhile, the smart speaker market continues to grow, with Amazon leading the pack at 60 per cent of recent buyers.

Amazon's vast ecosystem, which includes media, commerce, and utilities, reaches 46 per cent of US households through devices like smart speakers, streaming media players, and tablets. Samsung's ecosystem, anchored by smartphones and smart TVs, reaches 50 per cent of households. Microsoft's ecosystem, primarily through computers and Xbox consoles, reaches 64 per cent of households.

Other major brands are also expanding their ecosystems. Apple, with a reach of 61 per cent of households, is the most robust among them. Google's ecosystem, centered on smart speakers and displays, reaches 29 per cent of households. Additionally, companies like Sharp, focusing on high-resolution display products, and Greene Concepts, connected to platforms supporting consumer product goods manufacturing, are expanding their ecosystems in consumer electronics and related technology areas.

With 51 per cent of US internet households owning a smart speaker and/or display, the market for these devices continues to grow. As consumers embrace these technologies, companies are investing in operating systems, data services, and cross-device engagement to deepen user loyalty and capture recurring revenue. However, as the Amazon-FTC settlement shows, transparency and trust are crucial for sustaining consumer engagement in these ecosystems.

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