Consumers Interested in Broadband Security but Balk at Recurring Fees, Says Parks

Three-fourths of U.S. broadband households intend to acquire a security or privacy service in the next 12 months, blogged Parks Associates Tuesday. Thirty-eight percent ranked receiving such services with their broadband service at no additional charge as most desirable; 62 percent would pay an additional fee for the services via subscription, warranty or one-time fee. Consumers showed interest in security and privacy services including parental controls, malware detection and network activity monitoring, but they “still show a reluctance toward recurring fees”; just 27 percent would opt for a subscription model, said analyst Lindsay Gafford. Challenges to securing the smart home will intensify as consumers acquire more devices, creating business opportunities throughout the value chain for security solution providers, said Gafford. Parks found a “significant deficit between interest and adoption” with 63 percent of U.S. broadband households interested in an identity theft prevention service but only 19 percent using one: “The service potential is immense, and broadband service providers are entering this space by partnering with data security solution providers to provide value-added services for consumers,” said Gafford.