Thursday, September 20, 2012

Bundled services and new IP features generating churn and new subscribers in monitored security

14% of U.S. Broadband Households Interested in Security Services from Broadband Provider

New Parks Associates research in The Market for Home Control and Security Systems finds 14% of all U.S. broadband households are “highly interested” in receiving security services from their ISPs. Further, consumers with professional monitoring, 16% of all U.S. households, are also interested in the new bundling and service options that come with Internet-enabled systems. About 40% would switch from their current monitoring provider if that company does not offer new features such as email alerts, energy management, and lighting automation functions, revealing the importance of bundled services and new IP features in customer retention and subscriber growth.

“IP-enabled security features are opening the market for new offerings from communication providers, which could result in new security system adopters,” said Tricia Parks, CEO, Parks Associates. “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."

Companies including AT&T Digital Life, Time Warner, and Comcast are entering the security market to lure first-time security-system users and prompt current customers to switch providers. Parks Associates research shows that communications providers’ reputations, lower fees, new benefits, and bundling deals all contribute to a consumer’s desire to switch services.

“Service providers are working diligently to diffuse awareness and understanding of their new offerings," said Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates. "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.”

Parks Associates research - Demand and Subscription, Connected Home Value-added Services

For more information, visit http://www.parksassociates.com or contact 972-490-1113, sales@parksassociates.com.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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