Dive Brief:
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Amazon has started selling a variety of smart-home security product and service bundles through its own site that package Echo devices with installation services for a flat fee, according to the Home & Business Services section of Amazon.com.
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The new packages are available in 11 states, according to a report from TechCrunch, which was first with the news.
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The five available bundles range in price from $240 up to $840. The lowest-priced tier includes indoor and outdoor smart lighting and an Echo Dot, while the priciest options comes with a Dot, outdoor smart lighting, a video doorbell, a camera, sirens, and motion and safety sensors.
Dive Insight:
These new smart home service packages have emerged roughly nine months after Recode reported that Amazon was mulling a push into technology service installation and consulting that would directly compete with Best Buy's Geek Squad. The multi-tier family of offerings it has now bear a resemblance such an offering, especially with in-home visits included with each package.
Yet, on other fronts, Amazon and Best Buy have been on very friendly terms lately, as the latter agreed to sell Amazon Fire TVs. That lends this move some awkward timing. It's also worth noting that Geek Squad has taken some hits in recent months, first with some layoffs last year and more recently with the accusation that its technicians took FBI money to snitch on their own customers. If Amazon really is gunning for Geek Squad, now could be the best time to act.
These bundles appear to draw together a number of products and capabilities Amazon already had been working on in one form or another. For example, Amazon has been adding to its keyless entry and smart video doorbell offerings with the recent expansion of Amazon Key and the acquisition of Ring. It also has been positioning its Alexa virtual assistant for a bigger role in smart homes through efforts like a partnership with home builder Lennar to build Alexa into new homes to power home security, lighting and energy features.
In addition to possibly firing a shot across the bow of Best Buy, the new packages also represent the latest additions to Amazon's growing family of home services, a category it entered back in 2015 and has continued to expand. The general channel of home services could be a nice new revenue opportunity for Amazon, but smart-home services in particular could prove successful as many believe the category is finally taking off in a big way.