Amazon Ring Launches $10 Monthly Professional Alarm Monitoring

By: IPVM Team, Published on Jun 15, 2018

Amazon's Ring has announced an alarm system with 24/7 professional alarm monitoring for $10 per month, a fraction of the $30+ per month traditional alarm monitoring providers charge.

Is this the beginning of the end for the security industry's most lucrative business segment? Is hard hit ADT in even worse shape now? In this note, we examine the impact of this pricing, its sustainability and the risks.

Ring ******* **** ********

*** **** ** **** better **** **** ************ alarm ********** *** $** a *****. **'* **% off **** **** ****** a ****, **** $*** annually, * ******* *** compared ** $*** * **** commonplace **** *** ***** monitoring. ****, ****'******* ****' ************ ********* ****** ********* and **% ****** ***** Ring ********.

*** ******** ******* ****** their *** ******** ****** kit, **** *******, *** the ************ **********, ** Ring ******* ** ***** promotional *****:

$10 ******* ******* ********

*** **** ** $** monthly *** **** **** traditional ***** ********** ******, it ** **% ***** than *** ***** ****************'*$**.** *** ***** ********.

*** **** **** *****? Probably, ******. ********* ******* station **********, **** ******** backup, *** ********* ** found *** **** **** $10 *******. *******, **** is **** ********* ********* cameras, with ********* *** ******* of **** **** *** own **** ** ****.

*** **** **** *** **** / ****** ** (*) customer *********** ******** **** be ********* (************) ***** than *** ****** **** who *** ***** ******* alarm ********** *** (*) Amazon *** *** **** as *** ******* **** leader ** ***** (****** Amazon's ***'* ***** "**** ****** ** ** ***********") ** ******* ****** ***** reach **** ********'* ***** to **** **** ** other *****.

Negatives - ********* *** ********* *******

** ***** *** ********* negatives *** ***** ******:

(*) *********: ** ** discussed ** ****** ****** **** ******** Services, ********* ** ** issue, ** **** ************* require ********* *** ************** monitored ***** *******. **** too *** **** * common ******** / ********* of **********, ****** ********** has ********* ** ******.

(*) ********* *******: *** combination ** ************ ***** monitoring *** ********* ***** at **** $** * month (** $*.** **** purchased ********) ****** ********* about********* *******, ********* ******** **** ******* ****** **** **** *****. ** some *****, ***** ** anti-trust ****** ***** ** pursued ***** ******, ** its ********* ********* ** grow, *** **** *** ******** but ************, *********, **********.

Vote / ****

 

Comments (22)

While I think ADT has advantages moving upmarket and adding more advanced features, given how determined 'Silicon Valley' is to move into this market, even if ADT executes perfectly upmarket, they are going to get picked off again and again from the growth of Amazon / Ring, making revenue growth difficult and undermining profits.

And while the historical comparison to the MSOs and then DIYs like Simplisafe point to the traditional providers surviving, the Amazon/Ring threat is far tougher, given their (1) much greater reach and (2) much lower pricing. Agree/disagree?

Do we know what Amazon does for the “monitoring” fee?

By 'does' for the monitoring fee, do you mean how much it costs? If so, no. 

As I mentioned in a comment further down in the thread, a Ring support person claims that Ring's own employees will be monitoring but not sure if that is true.

The problem is, of course, that this lowers the public perception of what monitoring "should" cost. It's going to be a lot harder to sell $25/mo monitoring now, especially if a legacy security company has trouble articulating exactly why and how they're better than Ring. 

Man, I'm so glad I'm not in residential security. 

Agreed, it will make it harder to sell if prospects say "Well, why can't I just get this from Amaring for $10?"

Are you tired of the modular alarm companies? 

Amazon will do for alarms what it has done to independent and corporate booksellers.

This is only a fraction of the comet that is to come.

Matter of fact my book is showing up to its locker today. 

Bye Bye Central Station, love you, bye bye...toodle loo!

The security dealers who get RMR will probably see their payment rates cut, as well, as the traditional central stations cut their rates to compete.  Maybe Amazon will also add a program to compensate those who refer monitoring to them?

Another thought...hosting services provided by Brevo, Feenics, etc, might someday be supplanted by Amazon, et al, as well?  After all, it's only software.

After clicking the link to the 'Protect Plus' plan in the OP, I have a question based on what they show as differences between that plan and their 'Protect Basic' plan.

It appears as if the video offerings in both plans are the same (see bottom chart) - except the 'Basic' plan is per camera ($3), while the 'Plus' plan is unlimited cameras ($10).

While the 'Basic' plan specifically states 60 days storage of video clips, the 'Plus' plan does not specify number of days of storage - but the chart at the bottom has the same check marks in all of the video categories for both plans.

There are other differences but they are just discount/warranty related.

Question:

Can I get monitored alarms if I only have one camera and choose the 'Basic' plan - for only $3/month?

Can I get monitored alarms if I only have one camera and choose the 'Basic' plan - for only $3/month?

No, from the faq:

Didn't Amazon raise their prices on Amazon prime last month?

How many times has Netflix raised their prices in the last 5-7 years?

It should be easy for the average security dealer to show bigger companies raise their monthly fees on a more consistent basis.  They may start at $10 a month but will prolly end up at $14.99 someday.

Another concern is that more cities and states are requiring video verification to send police at all or to send within a reasonable time. Is Amazon verifying video? 

it would seem that with the Ring setup that they would be the best positioned to do so, no?  It's all their own components and storage aint it?

I want to know who's doing their monitoring or if they're doing it themselves. $10 is really cheap. My costs are higher than that when you consider monitoring, cellular radio and app fees.

I just got off the phone with Ring customer support, where the support person declared that all the alarm monitoring would be done by Ring employees.

Obviously, I am skeptical of that, given (1) it's a support person who could have bad information and (2) how much cost it would take to get this setup.

That noted, Rhodes has pre-ordered the alarm system so as soon as it arrives we will be able to verify and test.

This main panel wasn't UL listed for residential alarm signaling at ISC West, let us know if it is now. 

Residential customers will not care about the UL listing anymore than they will care beyond the $10 per month.

This disruption has been coming for a long time now and all of the old school tricks will have to be relearned.

Let's see:

1. Register as an alarm monitoring company in each state that requires it. CHECK

2.Offer self install option so you bypass the licensed installing company hurdle.CHECK

3. Add video verification to comply with local ordinances. CHECK

4. Ship replacement parts when needed. CHECK

5. Provide phone support to guide them when needed. CHECK

6. UL listed? Who cares unless you have an insurance mandate it has no value to the consumer. Wrong banner to wave at this point.

 

Did the industry shoot themselves in the foot when they sold security comprising of 2 doors, 1 motion, 1 keypad, 1 siren, and a panel with a $39.95 or higher monthly multiple with a 5 YEAR contract? Yes

They emphasized that the value was in the RMR not the equipment or the quality of the install. Here we are now full circle.

They established that the customer sees the install number and that is all security is worth to them. This solution is well within that price range and has a significantly lower monthly.

Same customers believe you can have a brand new iPhone for $99.00 too.

 

Blame marketing for the brilliant devaluing of what we do and how we execute the work of providing true security as opposed to tinker toy security with recurring revenue and half baked security.

Commodity based logic that in turn bites the hand that feeds it.

Unitize the installation so you insure the lowest quality execution of the work executed is the quickest fashion to start the revenue stream.

invest nothing in training and development of your technical team as they also have no value to companies either.

No followup on the quality control measures to determine if the technical team is destroying the reputation of the company with each and every install they do by installing in such a fashion as to create excessive false alarms which in turn creates a hostile relationship with law enforcement and then they create false alarm ordinances to address that too.

Absolutely no sympathy whatsoever for what the industry has done to themselves.

In 38 years I have seen more examples of this than I thought possible within a single industry, but it is now habit.

 

 

Great, now someone else can look at the alarm cause and see it was just my stupid cat changing positions during the day, and not someone stealing my stuff. Haha

If Amazon has now become a major competitor of ADT, it seems odd that ADT is advertising for them.

ADT - Ring Doorbell

I think for sure that; alarm monitoring stations, alarm dealers, and most manufacturers will need to lower their pricing to compete and for many that will spell doom. But I also believe from my limited experience in alarms that they still require service and what will be gained by the consumer may be eaten up by the tech. 

And then there is the Trump factor, not sure but if Ring is built in China it could be subject to special super duties, if enough industry people lobby him - as I understand Trump is not a great fan of Amazon either. Trump could save this industry and get a special IPVM humanitarian award - what you think John, can you swing that 

From ESX SIW recap:

Peter Giacalone. “While the industry has faced that time and again, it has never faced it from a source as great and powerful as Amazon – that is the most significant challenge to traditional companies.”

Have noted with interest recent radio commercials by Alarm.com, where a frustrated end user calls them and asks for assistance with the DIY alarm system and video doorbell he bought on line and now cannot get them working. 

The response is that alarm.com only works through qualified installers using commercial grade equipment.  It will be interesting to see if Alarm.com gets positive results from this approach.

I cannot wait for Amazon vehicle, boat, truck fleet security! 

The new vehicle Alexa, hands-free!!

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