The company has bought video doorbell-maker Ring for $1 billion, signaling a new security initiative.
(CCM) — Amazon is invading the home security market with the purchase of internet-connected video doorbell–maker Ring, according to a New York Times report. Amazon is believed to have paid around $1.1 billion for the Santa Monica-based company.
Amazon has already made a push into the home automation market by enabling its Echo products to control thermostats, lighting, and smart plug sockets made by third parties, but the acquisition of Ring suggests that Amazon wants more complete integration between Echo and security products. It may even be planning to make home security a part of its Prime membership subscription.
That would enable it to compete more effectively with security companies such as ADT, Comcast, and Alarm.com, according to the report. ADT's stock fell 4.6% when the deal became public.
Amazon already offers a service called Amazon Key which allows couriers to deliver parcels inside people's homes using internet-connected cameras and door locks. But in the future it may integrate facial recognition software into its Ring doorbells, James McQuivey, an analyst at Forrester Research, said in the report.
"I think it’s about going to the next level and having Alexa say, 'James, your fifth grader just walked in, and I locked the door behind them,'" he said. "It’s where these technologies have to go."
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