A new white paper examines how to achieve profitability in the consumer IoT market.
DALLAS, Jan. 2, 2025 — Parks Associates today released a new white paper, offering businesses a framework for assessing the long-term performance of consumer IoT solutions. Subscription services, such as video storage and professional monitoring, are crucial for offsetting ongoing cloud and support expenses. A significant 71% of video doorbell users pay recurring service fees, potentially covering alerts/remote monitoring, video storage, and/or professional monitoring. Smart cameras show a slightly lower service attachment rate of 66%.
Created in collaboration with a partner, the white paper highlights challenges in product development, provides cost-reduction strategies, and identifies key smart home monetization models that benefit both customers and ecosystem participants.
“Smart home providers utilize diverse strategies to create value and achieve profitability,” noted a Parks Associates Research Vice President. “This includes focusing on long-term revenue streams through subscriptions, cross-selling, upselling, and multi-sided value propositions leveraging data for multiple stakeholders.”
Beyond revenue, data from connected products offers strategic organizational value. Smart products maintain ongoing brand-user connections, providing insights into product usage, user demographics, and popular features. Analyzing user product integration reveals opportunities for strategic marketing partnerships, bundled offerings, or distribution agreements.
“As companies pursue long-term value and revenue from smart home devices, they must carefully evaluate the advantages and risks of their development strategies and the benefits offered by various partners,” the Vice President added. “Each approach presents unique advantages and challenges; understanding these is crucial for a sustainable business model.”
For interview requests or data inquiries, contact Mindi Sue Sternblitz-Rubenstein at or 972-490-1113.
About Parks Associates
Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting firm specializing in emerging consumer technology products and services. Established in 1986, Parks Associates delivers business intelligence and research services using proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.
The company’s expertise spans numerous sectors: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.
Each year, Parks Associates convenes thousands of leaders for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS
, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video.
Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
SOURCE Parks Associates
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