Security Dealer & Integrator

OCT 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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www.SecurityInfoWatch.com/10214991 D o-it-Yourself solutions will continue to be the proverbial thorn in the side for the traditional residential security integrator; however, recent research suggests that the old adage that a rising tide lis all boats should apply in this competitive market. Parks Associates released its Smart Product Market Assessment of Networked Cameras in September, which estimates 7.7 million standalone and all-in-one networked/IP cameras will be sold in the United States for residential purposes in 2018 – equat- ing to $889 million in revenues. "IP cameras are key security-related devices and provide peace of mind to consumers. As such, these devices are consistently among the most popular smart home devices," Parks Research Analyst Dina Abdelrazik said in a statement. "Currently 9 percent of U.S. broadband households own one, but advances in image recognition and ease of self-installation, combined with a strong user experience, are driving increased adoption, with retail chan- nels (online and in-store) starting to dominate sales." Before the residential business own- ers let out a deep sigh and move on, realize that the key metric here is the penetration rate – 9 percent is quite low compared to the traditional 22-25 percent residential security rate that most accept as fact. at means thou- sands (if not more) security customers are still without a video surveillance solution for their home. "e opportunity to upgrade exist- ing subscribers and add video surveil- lance is significant," says Tom Kerber, Sr. Director of IoT Strategy for Parks. ere's more good news here: Even if the vast majority buy the hardware either online or from a brick-and- mortar retailer, the video surveillance devices are creating far stickier secu- rity customers. "Video provides unique value to consumers. Once consumers check in to see a live view of their home from anywhere in the world, it is hard to give up that experience," Kerber says. "Attrition for security subscribers with cameras – including outdoor cameras and video door bells – can significantly improve retention. "e attachment rate of video cam- eras and home control products to new security systems continues to climb, as does the incremental RMR from video services," Kerber adds. e Parks report also points out that the majority of consumers still value recommendations and setup assistance. In fact, 7 out of 10 consum- ers planning to buy a networked/IP camera said they would consider rec- ommendations from an insurance or security company to be "important or very important." New parents and pet owners in particular make for strong target customers. Not Just Video It gets better. Complimentary (and most oen, DIY) smart home tech- nologies, such as voice control, are enhancing video surveillance and security capabilities in the smart home – further pushing the needle north- ward on adoption trends. e latest example is from Amazon, which has announced it is adding a few new features to the Echo (Alexa) system to turn it into a audio listen- ing device for home security security purposes. David Limp, Amazon's SVP of devices and services, explained at the product reveal in September that "Alexa Guard" will be able to listen for the sound of broken glass, or for a smoke or carbon monoxide alarm. If it hears those sounds, the device will send a notification to a phone – or more significantly for our industry, to a professional monitoring service. In fact, just before GSX, ADT announced it will support Alexa Guard within the Pulse system (Read more about it on page 14 of this issue). e bottom line is that savvy resi- dential security integrators have seen the light when it comes to DIY and the smart home – that is, as an opportu- nity rather than a threat. ■ Editor's Note BY PAUL ROTHMAN Paul Rothman — Editor-in-Chief @SecurityDealer www.facebook.com/SDIMag SecurityInfoWatch.com/sdifast50 www.linkedin.com/ company/16179507 DIY Not? Residential integrators may be losing on direct purchases of video, but there are still positive signs in the market MOTORIZED LATCH RETRACTION MORTISE LOCKSET sdcsecurity.com/Z7600MLR1 Security Door Controls • Door stays latched, even when unlocked • Use on fire-rated doors to maintain integrity www.SecurityInfoWatch.com/10214991

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