Home services – packages that include some combination of home automation, home monitoring, and home security – have a long way to go before they rival any of the other elements in the residential bundle in terms of revenue. But the potential is there and initial indications are highly encouraging.
There is still only a small subset of broadband providers that offer some combination of home services. AT&T, Bright House, Comcast, Cox Communications, Time Warner and Verizon in the U.S., and Rogers Communications in Canada are among the few.
No one is breaking out revenue figures, let alone subscriber figures – companies rarely do for developing markets. But as early in the market as it is, and as few companies are currently participating in it, total U.S. revenue from IP connected home service bundles can be expected to grow to exceed $1 billion by 2014, according to a projection by Parks Associates. Even split five or 10 ways, that’s not chump change for a brand new market.
Stuart Sikes, president of Parks Associates, said services and products for smart homes have been available about 15 years but haven’t been able to find a wide market until the recent technological developments. “This is about to explode,” he said. “Our problem is not technology. Our challenge is figuring out how to monetize and compel the consumer to spend money on the services.” “We’re seeing a lot of convergence in this space,” Warren said. “I expect the Googles and Apples and Microsofts will get in, start working through the Xbox or whatever. In 5 or 10 years, we’ll see that there were two or three companies that got it right and will have a big advantage over everyone else.”
From the article, "Home automation wherever you are..." by Brian Santo.
