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The Wall Street Journal

Comcast Expands In Home Security In Hopes Of New Growth

June 08, 2011

Bill Ablondi, analyst with market research firm Parks Associates, said the market for professionally monitored security and home management services in the U.S. could grow from roughly $9.5 billion this year to more than $12 billion in 2015, and broadband providers that are poised to enter the business could grab about a fifth of the market by then.

Ablondi said the home security is a fragmented business with a wide variety of local players, and a large company like Comcast--with its marketing heft, vast resources and 22.8 million video customers at the end of the first quarter--could be a formidable competitive threat to incumbents.

"Internet technology has disrupted a number of business models, and it's heading for the home security business in a big way," Ablondi said. "A lot of the incumbents have good business models with nice recurring cash flows and handsome profit margins, so they may be slow to invest aggressively in the new technologies that are coming."

From the article, "Comcast Expands In Home Security In Hopes Of New Growth" by Nat Worden

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