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AT&T to buy DIRECTV for $48.5b

May 18, 2014

Both companies have home security/home automation offerings—AT&T has Digital Life and DIRECTV bought LifeShield Security last year. And according to Tom Kerber, director of research, home control and energy for Parks Associates, a Dallas-based market research firm, the acquisition of DIRECTV “just makes AT&T that much more of a powerful competitor” when it comes to the connected home.

Kerber believes there will be bundling opportunities for AT&T in the deal. He pointed to a survey that Parks Associates did earlier this year showing how cablecos and telecoms are using that feature to their advantage. The survey showed that “23 percent of professionally monitored security systems acquired in the last 12 months were bundled with broadband TV, mobile or phone service.”

“So basically,” Kerber continued, “it’s the cable or telecom industry bundling security with their core services. … They’re essentially gaining some pretty good share of the new [security] systems; they’re not necessarily taking share from existing accounts but in the [new] growth, they’re taking a good bit.”

From the article, "AT&T to buy DIRECTV for $48.5b" by Tess Nacelewicz.

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A significant correlation exists between ownership of a security system and having an installed home controls system, according to Home Systems: Home Controls, a new report from Parks Associates....

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