PORT WASHINGTON, N.Y.—In a new survey that highlights an opportunity for cable and broadband operators sell both home security and video subscription services, the latest Home Automation Ownership & Usage Report from NPD’s Connected Intelligence is reporting that 41% of consumers who purchased security cameras, security systems, or smart doorbells at retail also chose to pay for a subscription service to access premium features.
With unit sales of these products expected to grow nearly 20% through 2023, according to NPD’s Future of Tech report, this creates an opportunity for companies selling security services, including smart home manufacturers and cable operators who offer smart home features over their broadband networks.
NPD’s latest data reveals that consumers who purchase these subscription service plans after buying their devices at retail are often individuals under the age of 35, who have a household income over $100K, are more likely to have young children, and are also more likely than non-subscribers to live in multi-unit buildings or townhomes. Additionally, subscribers are more invested in smart home technology, with 41% owning five or more different types of smart home devices, while only 25% of non-subscribers do.
“Smart home subscription services have long been seen as a path to profitability for smart home manufacturers, but creating offerings that are appealing to consumers – from both a features and financial standpoint – will be key to creating a loyal base,” said Jill Aldort, director, industry analyst for The NPD Group.
Of the consumers who subscribe to these services, 29% reported that 24/7 continuous video recording (CVR) is the most compelling reason to pay these additional fees. This is nearly double the 16% of respondents that cite access to an extended history of video clips as the top reason.
The NPD Group Connected Intelligence Home Automation Ownership & Usage Survey is based on consumer panel research that reaches over 5,000 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. The survey was fielded between March 17 – March 31, 2021.
