Fresh research from Parks Associates has revealed that more than 40 percent of new security monitoring subscribers are signing with nontraditional providers — like cable and telco companies.
“Traditional security companies still claim over 75 percent of the monitored security market, but this growth in subscribers through these new channels shows a renewed interest in security offerings,” according to a press release from the organization.
What’s going on? For one thing, major changes in the home security marketplace — much of it related to the new connectivity technologies.
“Roughly one-fourth of U.S. broadband households own a functioning security system, and the smart home and IoT are creating new opportunities to grow the security market,” said Tom Kerber, director of research in Home Controls & Energy at Parks Associates. “New features such as the ability to self-install and to check and control their security solution through their smartphones are enticing consumers to buy these new services.”
In its “360 View Update: Competition in Residential Security,” the firm analyzes competition for residential security services between traditional players and new players from the telecom and pay-TV sectors.
Bundling is also examined, wherein competitive power is derived from bundling security services with video, voice, and/or data services.
“The telecom and cable operators are taking a substantial portion of the strong growth in the market thanks in part to their ability to include security in triple- and quad-play service bundles,” Kerber said. “Interactive service providers are experiencing dramatic growth, as the portion of new professionally monitored security subscribers that include interactive services and home controls continues to climb.”
