Arlo, a prominent player in the smart home security market, has implemented another price hike for its cloud storage subscription service, Arlo Secure, impacting users who rely on the cloud to store recordings from their Arlo cameras. This adjustment marks a continuing trend of increasing subscription costs, raising concerns about the long-term affordability of maintaining an Arlo-based security system. The price increases affect both single-camera and unlimited-camera plans, now uniformly branded as “Secure Plus.” The single-camera plan, previously costing $7.99 per month, now stands at $9.99 monthly, while the unlimited-camera option has risen from $17.99 to $19.99 per month. This steady upward trajectory of subscription fees underscores a shift in Arlo’s business model, potentially prioritizing recurring revenue over initial hardware sales.
The price escalation is particularly noticeable for single-camera users, who have witnessed a dramatic increase in monthly costs over the past couple of years. The current $9.99 per month fee represents more than triple the $2.99 originally charged for single-camera cloud storage. This incremental escalation, first to $4.99 and then $7.99 earlier this year, signals a significant departure from Arlo’s initial pricing strategy and may deter potential new customers who are sensitive to recurring subscription costs. While annual billing offers a slight discount, bringing the effective monthly cost down to $7.99 for single-camera and $17.99 for unlimited-camera plans, the overall trend remains upward, potentially impacting customer loyalty and brand perception.
Arlo’s justification for the price increase centers around the introduction of new AI-powered features and an extension of cloud storage duration. These enhancements, rolled out in September, aim to provide users with more sophisticated and personalized security monitoring capabilities. Among the new features are personalized object recognition, allowing users to name specific people and vehicles detected by the cameras, and event-based notifications, triggering alerts for events like sprinkler activation or garage door openings. Furthermore, Arlo has doubled the cloud storage period from 30 to 60 days, providing a longer historical record of events. While these improvements add value to the Arlo Secure subscription, the question remains whether the increased cost is commensurate with the added benefits, particularly for users with basic security needs.
The strategic timing of the price increase following the launch of new features suggests a calculated move to tie added value directly to higher subscription fees. This approach, while common in the software-as-a-service industry, can be perceived as a compulsory upgrade for existing users who may not require or utilize the new AI-powered functionalities. The price hike might disproportionately impact users who are satisfied with the existing features and are now forced to pay a premium for functionalities they may not need or want. This could lead to customer dissatisfaction and potentially drive some users to explore alternative smart home security solutions.
Furthermore, the transition to a single “Secure Plus” branding for both single and unlimited camera plans simplifies the plan structure but also masks the significant price difference between the two options. While this simplification might streamline marketing efforts, it could also obscure the cost implications for users with a limited number of cameras. This lack of transparency might lead to some users inadvertently subscribing to a more expensive plan than necessary, further exacerbating the impact of the price increase.
While the price increase presents challenges for users dependent on Arlo’s cloud storage, Arlo does offer alternative solutions, albeit with limitations. Some users have been offered the option to retain their previous subscription rate by switching to an annual billing plan, mitigating the immediate impact of the price hike. Additionally, Arlo users can avoid cloud storage fees altogether by leveraging local storage options like Arlo Base Stations and SmartHub devices. However, this localized approach comes with a trade-off, as it restricts access to certain subscription-dependent features, such as package detection, effectively creating a tiered service model that incentivizes subscription uptake. This strategy reinforces the perception of cloud storage as the preferred option, potentially pushing users towards the more expensive subscription model despite the availability of free local storage.
