Smart Home Product Integration Key to Driving Recurring Revenue Growth, Says Parks
Smart home product integration will be key to driving recurring monthly revenue (RMR) growth, which has stalled for security companies, blogged Parks Associates Monday. More than three-quarters of new security subscribers have interactive services, paying $9 a month on average,…
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said analyst Tom Kerber. Just 23 percent of current security subscribers have an integrated smart home device, which can add $15 to system costs, Kerber said. Initiatives such as Vivint’s Flex Pay are meant to overcome consumer resistance to high upfront costs by offering financing options for security-as-a-service solutions and smart home products such as lights, locks and thermostat, he said. Additional findings: Half of current subscribers will buy add-on verification for $10 per month, more than 20 percent of subscribers are “very interested” in vehicle monitoring and tag tracking services, and just 37 percent of new subscribers have an integrated smart home device.