Thanks to the increased popularity of mobile devices and video streaming services, cable companies are suffering from slow growth lately. Comcast, one of the main U.S. cable companies, has chosen to turn its business focus to the growing home security sector, to address the problem.
In an interview with Reuters, Comcast said it will bring more offering to jumpstart the company’s home security division, to meet the challenge that American consumers are dropping traditional cable television packages.
“The home security industry offered certain advantages such as low churn, or attrition, since consumers rarely switch providers unless they move,” Daniel Herscovici, the senior vice president and general manager of Xfinity Home at Comcast, told Reuters.
Comcast entered the home security market when it rolled out Xfinity Home in 2012. It offers various subscription packages of connected home gadgets and services for home owners. According to the quarterly report published in July, the home service has doubled its number of subscribers to reach one million in the last two years.
Moving forward, the company plans to offer a video camera bundled with its Internet service for an additional US$10 cloud service fee per month. Cameras will be sold for US$99 each and the monthly fee covers installation, cloud storage for video recording, and video clip creation and sharing.
The offer targets condo owners and apartment dwellers who don’t need full home security systems but still want to have some protection on where they live. If successful, the program will expand this year.
It’s not hard to imagine that broadband providers will enter the home security and automation market. It’s a natural way to leverage their existing infrastructure and workforce to sell more services to new and existing customers. Up to 55% of Xfinity Home customers have become Comcast subscribers.
Meanwhile, Comcast recently revealed a deal with solar panel solution provider Sunrun. The collaboration aims to bring Sunrun’s solar roof to Comcast’s customers.
Another U.S. operator AT&T is reportedly exploring the possibility of its home automation business Digital Life, which is still a small part of the company’s overall business.