Growing Connection

Working with DIYers can provide another source of revenue, and make sure the job is done right

  • By Robert Ogle
  • Mar 01, 2016

The industry is starting to see a growing connection between existing home security and home automation providers and their DIY counterparts. Major security companies who have spent years building their brands are beginning to grow their businesses by acquiring or partnering with DIY providers and products.

At first, it seems counterintuitive that established “incumbent” companies would seek DIY acquisitions or partnerships. Along with powerful non-security players like Google, Samsung and Amazon, DIYers have traditionally set their sights on disrupting the security industry, offering security and smart-home solutions to customers who, for whatever reason, have traditionally been unwilling or unable to work with existing providers.

TALKING ABOUT DEALS

A number of deals in recent months show that existing security companies are firmly entertaining the notion that offering or integrating DIY alternatives can help grow their customer base and RMR. Monitronics Security was one of the first to recognize the trend with its purchase of LiveWatch in March 2015.

As a standalone subsidiary of Monitronics, LiveWatch sells a variety of wireless security and smart-home products direct to consumers under its Plug & Protect brand. The systems are ordered online, preconfigured, and sent to the customers. They “install” and activate the systems, and Live- Watch is available for support and advice.

Unlike many other DIY systems, LiveWatch offers live around-the-clock monitoring as well as self-monitoring alerts to mobile devices and emergency contacts using its proprietary ASAPer service.

Jeffery Gardner took the reins as CEO of Monitronics in September 2015, and quickly understood the importance of LiveWatch as part of a broad spectrum of customer options. On one hand, Monitronics has always had a robust dealer program in which integrators can offer products and services from a wide selection of well-known brands. LiveWatch covers the other side: People who want protection and home automation without going through a traditional dealer.

“It’s a good time to be in that space,” Gardner said. “Our industry is evolving so fast that there’s not a lot of time to ride the status quo. Live- Watch gives us a foothold and a strong engine for growth in the DIY market, and it’s always better to be the disruptor than the disrupted. We have to be able to lead change in the industry instead of just reacting to it.”

GOING LIVE

LiveWatch is separate from Monitronics’ dealer network, and Gardner is quick to underscore the network’s importance. “As things evolve, I’m very committed to our dealer program,” he said. “Regardless of anything we do to change Monitronics, it’s not going to get in the way of building a stronger dealer program. That’s been the foundation of this company for a long time, and we’re not going to lose sight of that as we plan for the future.”

Another game-changer for security industry incumbents has been the evolution of DIY technology as well as the involvement of larger companies who are getting involved. DIY had been largely available through a couple of big box chains and a scattered selection of devices and ideas, financed either through venture capital or through crowdfunding websites like Kickstarter and Indiegogo.

Google’s purchase of Nest in January 2014 for $3.2 billion marked a huge turning point in that paradigm, increasing the sense of urgency for other major brands to keep up. Now we’re seeing all sorts of strategic alliances, most recently between alarm.com and Apple; alarm.com and Amazon; Samsung and LG (which is going heavily into the DIY market), Panasonic and Honeywell, and (of course) Nest with a growing list of new partners and distributors, including energy companies.

Now the word is out: Whether it’s established security providers or huge companies that are competing for the high ground in home automation and security, ignore the DIY concept at your own peril.

“Monitronics is a good business, and it’s easy to say that we shouldn’t change things and that everything’s fine,” Gardner said. “But you have to be innovative and you have to adapt to the marketplace. That’s why the best companies today are very good about constantly evolving faster than the competitive environment that’s evolving around them.”

This article originally appeared in the March 2016 issue of Security Today.

Featured

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

  • Survey: 48 Percent of Worshippers Feel Less Safe Attending In-Person Services

    Almost half (48%) of those who attend religious services say they feel less safe attending in-person due to rising acts of violence at places of worship. In fact, 39% report these safety concerns have led them to change how often they attend in-person services, according to new research from Verkada conducted online by The Harris Poll among 1,123 U.S. adults who attend a religious service or event at least once a month. Read Now

  • AI Used as Part of Sophisticated Espionage Campaign

    A cybersecurity inflection point has been reached in which AI models has become genuinely useful in cybersecurity operation. But to no surprise, they can used for both good works and ill will. Systemic evaluations show cyber capabilities double in six months, and they have been tracking real-world cyberattacks showing how malicious actors were using AI capabilities. These capabilities were predicted and are expected to evolve, but what stood out for researchers was how quickly they have done so, at scale. Read Now

  • Why the Future of Video Security Is Happening Outside the Cloud

    For years, the cloud has captivated the physical security industry. And for good reasons. Remote access, elastic scalability and simplified maintenance reshaped how we think about deploying and managing systems. Read Now

Most   Popular

New Products

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame.

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.