Comcast is betting on ‘smart home’ offerings like remote-controlled cameras and door locks to ramp up its budding home security business.
The cable operator is pushing to diversify, and has also entered the mobile space, completing its nationwide rollout of its Xfinity Mobile offering earlier in August.
Comcast told Reuters that it’s turning to home automation and hopes to sign up customers who also subscribe to broadband and cable services.
The company launched its Xfinity Home security service in 2012, and according to second quarter earnings, has seen subscribers doubled to more than 1 million over the last two years.
Comcast has continued beefing up its Xfinity Home offerings since launch, over the past year adding new security camera capabilities as well as a voice control feature that lets customers arm and disarm their home security systems and control connected lighting. Additionally, Comcast bought out its home security equipment supplier IControl Networks Inc., in March for an undisclosed price.
Senior Vice President and General Manager of Xfinity Home Daniel Herscovici told Reuters that low churn is an advantage of the home security industry because customers are less likely to change providers.
The push comes as traditional pay-TV subscribers continue to drop off. Comcast reported losing 34,000 video subscribers in the second quarter of 2017. By contrast, smart home product sales are on the rise, with Parks Associates forecasting companies will sell almost 55 million smart home devices in 2020.
Comcast plans to roll out a pilot program in three markets, where it will offer a video camera for an additional $10 per month, bundled with its broadband offering, a company spokesman told Reuters. Customers can buy up to six cameras for $99 each and then pay a monthly fee.
The offering is meant to appeal to customers living in apartment buildings and condos who don’t require a full home security system but want to keep an eye on their homes.
If the pilot program is a success than it will reportedly expand later this year.
