• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

2

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

2

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
TechFortune 500

Inside Comcast’s Plan to Build the Smart Home

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
August 29, 2017, 7:55 AM ET
Add Fortune on Google for similar content.

Comcast may be best known as a cable company, but it is banking on remote-controlled door locks and cameras as well as other “smart-home” offerings to accelerate its growing home security business.

The push to diversify comes at a time when more U.S. consumers who are dropping traditional cable television packages, or cutting the cord, in favor of cheaper alternatives. Comcast and its rivals want to offer more services in the home to increase their revenues and create more loyal customers.

Comcast is already seeing traction at its Xfinity Home security service, which launched in 2012. Subscribers have doubled to more than 1 million in the last two years, according to quarterly results released in July.

But selling security services to consumers, which Comcast says is more than a $9 billion market, is just part of the strategy.

The company is now turning to home automation—think standalone features such as cameras and thermostats that can be controlled remotely—for consumers who reside in apartments and condominiums.

The U.S. smart-home market, which encompasses devices ranging from door locks to sprinkler systems that can be programmed to various schedules, is expected to grow to $47 billion annually by 2020, according to research firm Strategy Analytics.

Daniel Herscovici, senior vice president and general manager of Xfinity Home, told Reuters that the home security industry offered certain advantages such as low churn, or attrition, since consumers rarely switch providers unless they move. The cost of signing up customers is low since Comcast is able to sell to people who also subscribe to broadband and cable services.

The company first focused on home security because it was too early in 2012 to talk about connected devices, he said. Now it is also turning to automation.

“We haven’t reached anywhere near our full potential,” he said in an interview.

Overall, the home security and automation market is a natural extension for broadband providers who are looking for additional ways to leverage its existing infrastructure and workforce to sell more services to new and existing customers. Comcast has said that 55% of Xfinity Home customers become new Comcast subscribers.

But Comcast and others still face a shrinking market in traditional pay-TV services. Six of the largest U.S. pay TV firms lost a total of 723,000 customers in the second quarter in what J.P. Morgan analysts called the industry’s worst ever quarterly results during the period.

The big question for Comcast is whether a monthly subscription model—one that provides a recurring revenue stream beyond the initial sale of equipment—can take off in a market where consumers have the option of paying once for items like cameras without the extra perks that come with an additional fee, analysts said.

Comcast aims to find out with a pilot program in three markets to offer a video camera bundled with its Xfinity Internet for an additional $10 a month, a company spokesman said. Customers can purchase up to six cameras for $99 each and then pay the monthly fee, which includes installation, cloud storage for video recordings and the ability to create and share video clips.

The offer is meant for condo owners and apartment dwellers who don’t need full home security systems, but still want to keep an eye on where they live. If successful, the pilot will likely expand this year, a Comcast spokesman said.

Vivint, a home automation company owned by Blackstone Group, says it has succeeded selling monthly service plans for $39.99 and $49.99. The product includes features such as an app that allows consumers to control all smart-home functions from their phone, and professional monitoring that dispatches emergency services when needed and customer support.

Part of the appeal to the consumer is that they can select devices to be integrated into a single system via a curated platform, Vivint executives said.

According to Strategy Analytics, Comcast has roughly 10% of the market for interactive security, the category of home security that offers remote monitoring and arming of systems, compared to market leader ADT Corp’s 20%.

Comcast (CMCSA) plans to get a bigger slice of that market share. In March, it bought out its supplier of home security equipment, IControl Networks, for an undisclosed amount. The deal gives Comcast more control over research and development capabilities and provides it with a new revenue stream as a wholesaler to other companies in the market.

Blake Kozak, principal analyst at market research firm IHS, said Comcast has an advantage because it is already in the home, with services like a remote control that responds to voice commands and the X1 set top box.

“They have a lot of things going for them in terms of creating an ecosystem for the consumer and getting them to engage,” he said.

About the Author
By Reuters
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Getting past the pilot: Why so many AI test projects have trouble scaling
SuccessBrainstorm Tech
Getting past the pilot: Why so many AI test projects have trouble scaling
By Alexei OreskovicJune 24, 2026
3 hours ago
‘Godmother of AI’ and tech entrepreneurs draw investors by pivoting from chatbots to ‘world models’ saying AI has to read the room, not just books
AIRobots
‘Godmother of AI’ and tech entrepreneurs draw investors by pivoting from chatbots to ‘world models’ saying AI has to read the room, not just books
By The Associated PressJune 24, 2026
5 hours ago
‘We are in agony’: Today Show host Savannah Guthrie begs public for help as reports surface her missing 84-year-old mom might be dead
North AmericaMedia
‘We are in agony’: Today Show host Savannah Guthrie begs public for help as reports surface her missing 84-year-old mom might be dead
By The Associated PressJune 24, 2026
5 hours ago
Asia’s defense boom is rewiring the global arms supply chain
Commentaryarms, weapons, and defense
Asia’s defense boom is rewiring the global arms supply chain
By Chris OberoiJune 24, 2026
5 hours ago
Institute's Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California.
RetailSpaceX
Elon Musk was the world’s first trillionaire for 12 days
By Eva RoytburgJune 24, 2026
6 hours ago
President Donald Trump pictured in September 2025 signing an executive order that overhauled the H-1B visa program.
EconomyImmigration
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
By Tristan BoveJune 24, 2026
8 hours ago

Most Popular

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
19 hours ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
11 hours ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
19 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
13 hours ago
Current price of gold as of June 23, 2026
Personal Finance
Current price of gold as of June 23, 2026
By Danny BakstJune 23, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.