New Internet home services is opening up new market opportunities for telecompetitors and other service providers, according to a new study from Parks Associates. In “The Market for Home Control and Security Systems,” Parks found that 14% of U.S. broadband households are “highly interested” in receiving security services from their ISPs.
In addition, the 16% of all U.S. households with professional monitoring services are also interested in new bundling and service options that include Internet-enabled systems, according to Parks. About 40% would switch providers if their current monitoring service provider doesn’t offer features such as email alerts, energy management and lighting automation functions.
The findings reveal the importance of bundled services and new IP features in terms of customer retention and subscriber growth, Parks analysts noted. “IP-enabled security features are opening the market for new offerings from communication providers, which could result in new security system adopters,” commented CEO Tricia Parks.
“The penetration rate for security systems has been stagnant throughout this recession, with new customers barely outpacing cancellations. If entry of new players can attract a portion of the U.S. households without any monitored security, it could help revitalize this market.”
AT&T, Comcast, Digital Life and Time Warner are among the companies entering the Internet security services market in a bid to attract new customers to the market and lure existing customers to switch providers, Parks points out. Providers’ reputations, offering lower fees and new benefits, as well as new bundling deals all add to their ability to do so.
“Service providers are working diligently to diffuse awareness and understanding of their new offerings,” added Parks’ director for Research, Home Controls & Energy Tom Kerber. “While that takes time and marketing money, providers such as AT&T and ADT Security are investing for the long-term future of home management and health services that enhance consumers’ daily lives.”