2012 RESIDENTIAL MARKET REPORT WHEN OPPORTUNITY
industry includes a host of meaningful activities (see sidebar). T ese changes will push more change; more change will result in new opportunities and risks for dealers. Besides new players, the business structures of some major players have changed. In terms of evolving off erings, major players in residential
C
monitored security are adding or have added a menu of connected home services that enhance security, new categories using IP that off er new benefi ts, or both. Questions abound for the security ecosystem and for connected home services — and so do corresponding viewpoints …
At the consumer level: • Do consumers value the connected home features now being off ered as adjacencies to professionally monitored security?
32 / SECURITYSALES.COM / NOVEMBER 2012
hanges to the residential security ecosystem seem swift, at least in retrospect. From a mature, steady business environment with business pro forma 'as usual,' the recent past for the security
• Will those consumers pay monthly fees over and above current monthly fees already paid for monitored security?
• Will the monthly fees now paid for monthly security remain at their current average rate of near $40? Or will competitive pressure cause a decline in monthly fees?
• Is there a market for connected home bundles without monitored security? How big is it? Will some percentage of current subscribers cancel monitoring contracts (when they can) to obtain lower rates for connected home services?
• Will consumers switch to a communications provider that can off er a fully integrated home entertainment, security monitoring and control solution? Can entertainment options be used to 'push' home management, energy and security?
At the manufacturer level: • How big a threat are giants such as AT&T;, Comcast and others to the traditional providers?
• What eff ect will the rapid rise of Vivint and the Blackstone PHOTOGRAPHY ©ISTOCKPHOTO.COM/ALEXSL
The residential security landscape is being rocked by a seismic wave of IP connected features and services. Gain perspective of how each segment of the channel is being jolted by this major shakeup and eventual shakeout. Also take heed of the telling statistics and tips to capture new revenues to keep your business on solid ground. by Tricia Parks