A decade ago, cable operators were eyeing the home security market as the next frontier for incremental revenue. But these days, they are prioritizing home automation over security as more people become comfortable with the service thanks to Google Home, Nest thermostat and other devices. Cox recently went from offering two tiers of service—a home security offering and a more expensive home security/automation offering and reversed it so that the basic entry package is now automation only and starts at $19.99/month. Cox’s Homelife Automation includes an indoor/outdoor HD camera with free motion-activated recording and secure live camera viewing. Also included are custom alerts sent to mobile devices (for example, when children get home from school), control of lights, smart door locks and thermostats remotely from mobile devices, 24/7 support via phone and professional installation. “We realize there is an emerging market that really aspires to smart home services, but may not want the professional 24/7 monitoring,” Cox Homelife svp said Kristine Faulkner . Overall US revenue in the smart home market is estimated at $18.9mln this year, with an expected annual growth rate of 14.8%, resulting in market volume of $32.8mln in 2022, according to research by Statista. Household penetration from 2018 to 2022 is expected to rise from 32% to 53.1% during that time. For Cox, the hope is to capture some of that market by zeroing in on chief consumer concerns: the expense of various devices; the anxiety over install of those devices and getting them to work together; and offering ongoing support. The MSO began to roll out the automation offering in late March following testing in Tulsa, San Diego and Rhode Island. Cox should complete the nationwide rollout in early June, with the remaining markets to get it primarily located in its southeast and central regions. While Cox does allow a customer to subscribe to just Homelife Automation, 98%+ today take other services (with the MSO believing the service is helping improve churn). The shift to automation over security isn’t a drastic change. “The emotional benefits consumers see in these services are very similar across monitored home security and home automation. Feeling protected, being safe, peace of mind really translate across both of these,” Faulkner said. “I think ultimately consumers want increasing choice over how much they want to control vs what they want monitored. I think we’ll continue to see business models evolve.” When it comes to integration, Cox has a certain amount of devices it’s working with today, including cameras, thermostat controls, door locks and lighting. “It won’t be every single manufacturer and device, but our quest is to really cover the key categories of interest,” Faulkner said. One of the things she believes the automation offering has going for it is that in some cases, it opens up options that consumers may not have previously thought about. “Most of the smart home options today largely depend on consumers buying individual devices, setting them up themselves and making them work seamlessly together,” she said. “There’s little help offered to those who want to create an ecosystem of those devices that work together. We recognize there’s a desire for simplicity, convenience and personalization in how they control their homes.” [Editor’s Note: This is our first article in a series looking at home automation. Our next installment will focus on Comcast’s efforts.]
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