Smart Home Channel Strategies and Business Models PARKS ASSOCIATES
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1 Smart Home Channel Strategies and Business Models PARKS ASSOCIATES 1
2 Smart Home Channel Strategies and Business Models MODERATOR Tom Kerber, Director of Research Home Controls & Energy, Parks Associates Kevin Petersen President AT&T Digital Life Brian Seemann President Resolution Products, Inc. Curt Schacker VP and Managing Director, Connected Products EVRYTHNG Steve Shapiro Vice President, Industry Relations ADT Marcus Scheiber CEO & Co-Founder ROC-Connect, Inc. Christopher Williams Sr. Director Product Strategy and Development Time Warner #CONNSummit15 PARKS ASSOCIATES 2
3 Barriers to Smart Home System Adoption - Awareness Smart Home Familiarity (Q2/14) % of Respondents 20% 10% 0% 10% 20% 30% 40% 50% 60% 70% Very familiar (Rating 6-7) Not familiar (Rating 1-3) 10% 11% 8% 9% 62% 62% 72% 69% 80% Smart home services Smart home products Where to buy smart home services Source: American Broadband Households and Their Technologies Q N=10,000 broadband households, ±0.98% 2014 Parks Associates Where to buy smart home products.com #CONNSummit15 PARKS ASSOCIATES 3 3
4 Barriers to Adoption - Interoperability 70% Importance of Interoperability (Q2/14) % Reporting "Very Important" (Rating 6/7 with 7="Extremely Important") 60% 50% 40% 30% 20% 10% 0% 51% 1st device purchased (n=736, ±3.61%) Source: American Broadband Households and Their Technologies Q N=10,000 broadband households, ±0.98% 2014 Parks Associates 58% 2nd device purchased (n=573, ±4.09%) 60% 3rd device purchased (n=520, ±4.3%).com #CONNSummit15 PARKS ASSOCIATES 4 4
5 Two Paths to Market Products #CONNSummit15 PARKS ASSOCIATES 5 5 5
6 Two Paths to Market Smart Home Devices as System or Stand Alone (Q2/14) % of Owners 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 32% 34% 39% 41% 41% 44% 45% 47% 48% 49% 54% 55% 55% 9% 8% 9% 11% 9% 10% 7% 12% 10% 12% 10% 8% 13% 58% 58% 52% 48% 50% 46% 48% 42% 42% 39% 36% 37% 32%...stand alone devices, not part of any system...part of a home control system that controls multiple devices...part of a home security system Door locks Security camera Combination sensor Water leak detectors Carbon monoxide detectors Smoke detectors Door bells Lights Garage door openers Outlet/plug Programmable thermostat Blinds or drapes Power strip Source: American Broadband Households and Their Technologies Q N=10,000 broadband households, ±0.98% 2014 Parks Associates.com #CONNSummit15 PARKS ASSOCIATES 6 6 6
7 SPEAKER Kevin Petersen President AT&T Digital PARKS ASSOCIATES 7
8 AT&T Digital Life Growing the Smart Home and Beyond Transform the End to End Experience Integrate security and automation capabilities $115B Global smart home market* Retail distribution points Utilize AT&T Core Strengths Open Platform with countless possibilities 118M 82M+ AT&T US Wireless Subscribers Households in Digital Life footprint * Sources: Strategy Analytics, 2014, Parks Associates, AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
9 SPEAKER Curt Schacker VP and Managing Director, Connected Products PARKS ASSOCIATES 9
10 What smart homes can learn from a can of Coke IoT Smart Products Platform SMARTER APPLIANCES CONNECTED SERVICES REAL-TIME RULES PERSONALIZED REWARDS PRODUCT TRACKING HEY FRIDGE, ORDER MORE CREAM FOR THIS RECIPIE COOKING INSTRUCTIONS SENT TO THE MICROWAVE AVG TEMP FOR ALL ROOMS CHECKED RPM DOWN NEXT SCAN UNLOCKS GAME LEVEL 5 HOW FAR I VE TRAVELLED, WHAT I M MADE OF Value Proposition Ecosystem Business Model EVRYTHNG Limited
11 SPEAKER Marcus Scheiber CEO & Co-Founder ROC-Connect, Inc. PARKS ASSOCIATES 11
12
13 SPEAKER Brian Seemann President Resolution Products, PARKS ASSOCIATES 13
14 Convergence in the Smart Home Why Resolution is in the Game. Professional Security Proven Recurring Revenue Model Hardened Security Proven Relevance Established, Proven Wireless Struggling to Expand Mkt User Interfaces Static & Dated IoT Automation Struggling to Monetize Soft Security Innumerable Products Uncertain Relevance Wireless Standard Shakeout Consumers Energized User Interfaces Evolving
15 SPEAKER Steve Shapiro Vice President, Industry PARKS ASSOCIATES 15
16 The ADT Smart Home = The Safe Home Customer Network of Nearly 7 Million, including more than 1 Million ADT Pulse Customer Delivers professionally installed and monitored security Answers approximately 19M alarms each year Offers home automation and control with ADT Pulse interactiv services with security at the core, providing flexibility for remo System arm / disarm Lighting and appliance control Door lock and garage door control Custom notifications and scheduled events Temperature and energy monitoring Video monitoring and video clips Holds strategic partnerships with companies such as McAfee, Life360 and IFTTT for enhanced solutions and service With more than one million ADT Pulse interactive security customers, we believe that the smartest smart homes must also be safe. Simply put, our view is that safety and security is something that you should not compromise on. Arthur Orduña, senior vice president and chief innovation officer for ADT Steve Shapiro VP of Industry Relations January 6, 2015 ADT
17 SPEAKER Christopher Williams Sr. Director Product Strategy and Development Time Warner PARKS ASSOCIATES 17
18 SPEAKER Christopher Williams Sr. Director Product Strategy and Development Time Warner PARKS ASSOCIATES 18
19 Smart Home Channel Strategies and Business Models MODERATOR Tom Kerber, Director of Research Home Controls & Energy, Parks Associates Kevin Petersen President AT&T Digital Life Brian Seemann President Resolution Products, Inc. Curt Schacker VP and Managing Director, Connected Products EVRYTHNG Steve Shapiro Vice President, Industry Relations ADT Marcus Scheiber CEO & Co-Founder ROC-Connect, Inc. Christopher Williams Sr. Director Product Strategy and Development Time Warner #CONNSummit15 PARKS ASSOCIATES 19
20 THANK YOU FOR MORE INFORMATION: Tom Kerber Director, Research, Home Controls PARKS ASSOCIATES
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