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.”
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