What Will Be The Impact Of Home Security Megamergers?

Published: Thu, 17 Mar 2016

Tyco/Johnson Controls, and then Apollo/ADT. It may be early, but this has already been a busy year for merger activity in home security. The biggest players are merging, and there is no telling what will come next, as this kind of activity tends to beget more of the same. This article by Spencer Ives at Security Systems News discusses a poll where industry insiders are asked for their perspectives on the topic.

Although their views are primarily driven by the impact these mergers will have on their businesses, there are still some interesting implications for consumers. The respondents were generally favorable on the impact of these mergers, but there were also a healthy number of detractors. In either case it seems like customers may be losing out. Those in favor of the mergers argued that the large companies involved would be consumed with consolidating operations and so customer service would suffer, which offered them a business opportunity. Those against were concerned that monopolistic power may be accumulating, which they ultimately saw as detrimental to the competitive dynamic in the industry. This can mean a lot of things to consumers, but the primary outcome is likely higher prices. One respondent claimed that a larger player tends to 'blanket' the market with cheaper offerings.

So whether it be compromised service or higher prices, it doesn't sound like consumers have a lot to gain here. Yet another reason for people to look at a new way to do home security. Korner offers home security for under $100, you can set it up on your own in minutes, no contracts, and it's portable so you can take it with you when you move.

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