ADT

Moat components: 1) Intangibles and brand: ADT remains the most recognized U.S. monitored security brand with 6.1 million subscribers and longstanding insurer relationships, now extended by State Farm’s 2022 strategic investment, which also adds distribution and credibility. 2) Switching costs: multi‑year contracts (typically 2 to 5 years) with early‑termination fees, installed hardware, and integration into the ADT+ app raise migration friction; measured attrition is 13.1% TTM. 3) Cost advantage and scale: nationwide field techs, centralized monitoring, and Remote Assistance handling about 50% of service requests reduce truck rolls and costs. 4) Efficient scale: local markets support only a few full‑service players; ADT’s footprint and dealer network deter small entrants. 5) Network effects: minimal, though features like Trusted Neighbor and Google Home integration can increase stickiness.

Erosion risks: DIY players (Ring, SimpliSafe), smart‑home platforms, and telemarketing/privacy rules can pressure adds and retention; management offsets with product upgrades (ADT+, Origin AI presence sensing) and pricing discipline.