Security Systems News

APR 2016

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

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security industry. To help sort it all out, Security Systems News caught up with Tom Kerber, who leads Parks Associates research in the areas of home controls, energy management and home networks. In terms of the overall impact on the industry, Kerber noted that Parks Associates' initial research shows that "almost half of the new subscribers are getting their ser- vices from the cable and telecom operators. Again, this is based on a small sample size, but those are really dramatic numbers and a signifcant move for the industry." While Parks Associates said that interactive services are hav- ing a positive impact on RMR, the research frm is taking a close look at whether that trend will continue over the next several years. "In our last two data points, and we are talking about 2,000 to 3,000 consumers in Q2 and Q4, RMR did show a slight fattening off," Kerber said. "We are going to look at other data sources to try to confrm this, but we may have to adjust our estimates down a bit to show that number fattening, not declining, but a fattening out of RMR potential." He explained that while inter- active services can be found in the majority of professionally moni- tored household security sys- tems today, there are "a lot more dynamics going on than there have been in past years," he said. One is the ever-increasing presence of cable and telecom operators on the residential side, who are claiming that they have lower creation costs and a com- petitive advan- tage, because they're selling t o e x i s t i n g customers in m o s t c a s e s . They also say their massive m a r k e t i n g budgets give them an advantage as well. Kerber added that the good news overall is that the industry is growing. "These new entrants are doing their part in growing the market overall, and by doing so, lifting the other players as well." Another major trend impact- ing the industry is the growth of self-installed systems or DIY, as well as self-monitored systems, Kerber said. "That is of particular inter- est, and we are fnding that for someone who has had a security system installed in the last year, almost a quarter of them said that they installed it themselves. Now, this number is based on a small sample size (more than 200 peo- ple who have had their security system installed in the last year), so you can't take it to the bank, but that is much more than it has been historically, and it is of interest for further research and analysis." With increased competition, Kerber asserted that traditional dealers today need to offer what new customers want, such as interactive services, home con- trol options, and even a DIY or self-installed option, if they want to compete for the new business. "The more traditional dealers have to fnd out how to work that into their business plan—to offer customers a lower-cost install option," he said. SSN Parks Associates' Kerber talks new entrants, trends ISC WEST Continued from page 37 Loud pointed out that ISC West provides an ideal forum for the industry to come together. "On the technology side, we have some great partners, and we are defnitely going to walk the show foor all three days, from 10 a.m. all the way to close. We have found so much, and gotten so much out of that show over the years, including many of the partners that we use today, from technology to soft- ware," he said. SSN Continued from page 1 Tom Kerber www.securitysystemsnews.com April 2016 SECUriTY SYSTEMS NEWS Residential systems 38

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