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Residential Security Monitoring Recurring Revenue Market 2016 Opportunities, Challenges, Strategies & Forecasts

Thursday, January 12, 2017 8:58
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Home security monitoring services offer basic and enhanced services to homeowners.  Basic security services have wired and wireless sensors installed on windows and doors to detect unauthorized and forced entry.  The sensors trigger alarms that notify a central station that then notifies the homeowner and the police if appropriate.  Services operate 24/7, even during power failures, and can contact the fire and paramedic units.  Revenue reported herein is for the ongoing monitoring service. 


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High end home security monitoring services offer video surveillance.  Mobile security solutions allow managing the security system from electronic devices.  Personal emergency response may be part of the security package, where medical help can be summoned if needed.  Energy management, environmental hazard monitoring, warning of water pipe bursts, and flooding generate alerts as wireless sensors trigger alarms that notify a central station.  As with the basic service packages, the hardware is a large upfront cost that the customer initially pays only a small fraction of.  Ongoing monitoring service is the recurring monthly revenue (RMR) that the companies receive.  Thus, customers must be maintained for long periods of time to generate profits on each customer.  Customer service and automatic payment methods are important for the profit margins of each company.  Thus, maintaining customer is the most important part of this business.  


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Analysis can be customized by location and type of facility, such as residential, small business, or commercial.  In the US additional breakdown of the revenue is offered by metropolitan statistical area (MSA).  This edition of the index is limited to residential revenue from US dwellings.  Residential monitoring includes single family and multifamily dwellings, but not small business.  Analysis of additional regions worldwide or alternate type of facility can be provided upon request. 


Companies Mentioned:



ASG Security

AT&T, Inc.

Comcast Corporation

Central Security Group

Gardian Protection Services

Monitronics International

Protection One, Inc.

Stanley Black and Decker


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