Amazon Launches Home Security Services

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Move over ADT? It is certainly what investors have feared for ADT, especially since Amazon acquired Ring.

Now, Amazon has launched their own home security services, including alarms, video surveillance and installation:

The Amazon employee reference is especially interesting since historically Amazon has used freelancers with mixed results (see our test). However, given the size of the home security (i.e., 1 out of every 5 US homes have systems already, it could justify such direct employees and be a major threat against ADT.

Amazon is offering 5 packages to start, with the security / video one starting at just $320 including installation, very low for conventional security offerings:

Plus, for that price, Amazon is committing to have an installer come to the homeowner's house twice:
Evidently no more keypad, Amazon aims to alarm one's security system via Alexa:

And Amazon is throwing in a modern version of the old 'Fake TV':

Self Monitoring Free But Monthly Monitored Pricing Undetermined

We assume that self-monitoring will be free, as it is for other consumer services like Simplisafe. However, for central monitoring we have not yet seen what monthly pricing will be. That, of course, will be a key element, given traditional providers charging $30+ per month.

Security Licensing

One major concern is licensing. In most US states, installing home security systems requires licensing. While Amazon's marketing lists 'Amazon employees' to 'take control of your home security' it is not clear how many and or where will be licensed appropriately.

Competitive Impact TBD

On the one hand, given Amazon's success and size, it is easy to conclude that ADT will go bankrupt and this is the end of the residential security market. On the other, Amazon is not always successful, and their CEO literally encourages failure, so it is possible that a few years from now, this is looked back on as a gimmick or half-hearted effort.

More To Come From IPVM

We plan to sign up for Amazon home security as soon as possible to test out the installation process and system functionality.

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