Broadband subscribers are becoming more aware of the security threats coming from the Internet and are showing interest in data privacy, parental controls, and malware protection, among other features. According to recent research from Parks Associates, broadband subscribers would like to see their ISP bundle it with their Internet service.
Three quarters of U.S. broadband households plan to buy a security service within the next year, according the research. More than one third (38%) said the best option would be to have those services offered free of charge when bundled with a broadband service.
The report goes on to say that consumers are showing greater levels of interest for all types of data privacy and security solutions. However, the percentage of consumers who are interested and those who are planning to adopt are quite different — 63% are interested in a solution preventing identity theft, but only 19% actually use identity theft solutions.
While interest in security and private services is high, “consumers still show a reluctance toward recurring fees – only 27% of data security/privacy intenders would opt for a subscription model,” said Lindsay Gafford, Parks Associates research analyst, in a prepared statement. “The challenges to securing the smart home will intensify as consumers acquire more devices, creating ample business opportunities throughout the value chain for security solution providers. Vendors can differentiate by providing security expertise and flexible solutions that keep pace with changing security requirements.”
Among other findings from the research:
- 63% of US broadband households use at least one data security service for any purpose.
- 40% of consumers do not take any action to protect themselves from unauthorized access to their connected devices.
- Only 15% of consumers strongly believe they receive a lot of benefit in sharing access to their data.
Adding a security product to broadband could add some significant value to an ISP’s service, helping differentiate it from competitors. The key is how to properly price broadband service that includes an Internet security offer, while still maintaining desirable profit margins.