The connected home is a growing market that expands well beyond security and includes remote access to heating control systems, lighting, locks, video cameras, wearables and more. Juniper Research projects the smart-home industry will grow to $71 billion in revenue by 2018, and IDC predicts that the Internet of Things market will balloon to $8.9 trillion by 2020.
Cable providers need to seize this opportunity, grow new streams of revenue and take advantage of the strong connection they already have with consumers in their homes.
The following are three reasons why cable executives need to reevaluate their connected-home strategy:
Fast Action Required: The home automation market is moving extremely fast, with new connected devices and solutions emerging seemingly every day. Cable companies can thrive in this fast-paced market by offering scalable architecture that allows for quick device integration from myriad new solutions that are becoming available almost daily in the market. Adding new devices in days — not months — is how cable companies can stay ahead of this ever-changing market and satisfy their customers with cutting-edge product offerings.
Increase ARPU: There’s a massive opportunity to add value to smart products by wrapping software and services around hardware to make them work together in a cohesive system. In the connected home, previously “boring” products like wireless routers, cable boxes, lighting control systems and locks can become the centerpiece for a wide range of recurring monthly services.
Cable providers that control this central experience can deliver (or simply receive commissions on) a wide variety of services that drive more long-term value from the hardware devices themselves.
Big Data Benefits: The number of connected devices on the market will reach 50 billion by 2020, according to Cisco. As the number of smart devices grows in usage among consumers, the amount of data collected by these devices will grow exponentially. Leveraging this data in ways that lead to smarter business decisions is a tremendous opportunity in all industries, but most notably among cable providers.
A home-automation solution enables cable operators to aggregate the data that flows through the central hub and coordinates devices. Access to this unprecedented level of data will lead to a better understanding of consumer behavior and predictions on new trends, which will inform executives on new offerings or services.
The time is now for the industry to get serious about the opportunities offered by the connected home and the Internet of Things, and those that seize this moment will provide significant value to their business over the long term.
Mike Harris is CEO of Zonoff, a software platform vendor targeting the connected home.