Arlo positions smart cameras as on-ramp to a security system

First came security systems, then came cameras. That was the way of the world for years until consumers awakened to smart cameras offering the convenience of self-installation, remote self-monitoring, smart notifications, and low-or-no monthly fees.

Now Arlo, one of the leading smart camera brands, is introducing a new Arlo Security System consumers can add-on to their cameras. Of course, newcomers to the brand could start with the new system, but the substantial installed base of Arlo customers clearly provides the low-hanging fruit for adopting the sensor-based system. The new system announced as a CES 2022 Innovation Award winner will come to market in Q2 of this year.

The product centers on a modular hub similar to the former Nest Secure, which includes a siren, smoke/CO alarm listener, backlit keyboard, and NFC technology supporting tap to arm and disarm with a smartphone. An eight-function multi-sensor serves use cases as diverse as motion, open/close, tilt, water leaks, temperature, light changes, and audio analytics to detect smoke alarms. The system will, of course, integrate with existing Arlo cameras.

Arlo has long marketed its cameras as a “wire-free security system.” The success of such marketing efforts is reflected in Interpret’s recent Smart Home Matrix™ research finding that 44% of smart camera owners and purchase intenders consider smart cameras as a security system. Traditional security monitoring providers have worried that the adoption of DIY cameras would serve as a lower-cost replacement to their services. However, speaking to that concern, Interpret research also found that among smart camera owners, only 14% agree that having cameras eliminates the need for a more conventional security system.

These findings suggest a strong DIY market exists for consumers who view smart cameras alone as a sufficient first step into a “security system,” but that in the long run they recognize the value of more layers of security, whether through additional sensors or professional monitoring.  This makes cameras the new on-ramp to home security services. Perhaps that’s also why Arlo has partnered with Calix to integrate their Arlo Secure camera systems into the Calix Revenue EDGE platform to provide a turnkey smart home product offering for internet service providers. This new solution reportedly has enabled some providers like Jade Communications in Colorado to double their monthly RMR in just two months for their subscribers who added the service. Adding the new Arlo Security System to this product mix couldn’t be far off.

Learn more consumer insights about Smart Cameras and Video Services in Interpret’s latest Smart Home Matrix: Consumer publication. Also, find video-shorts highlighting demographic shifts driving innovations like these in the smart home market.