THE ARC OF INNOVATION

In 2004, Jonathan Frase began his journey to develop a business that would eventually become one of the leading providers of proactive video monitoring. Initially, he had built a career in the aviation industry, but his entrepreneurial spirit led him to leave that path and join the family business Frase Protection, a security system installation company based in Memphis The company offered a wide variety of security, fire, and smart home services to businesses and residents in the rapidly growing Memphis area and even operated its own monitoring center

But Frase found that managing the staffing for overnight shifts in the monitoring center proved challenging. By 2016, he recognized the need for a more efficient solution and began exploring options to outsource the firm’s monitoring services. His search led him to National Monitoring Center, the leading provider of security monitoring services in North America. Little did he know that choosing to partner with NMC would open the door to future business growth and long-term recurring monthly revenue

In addition to its suite of security and alarm monitoring services, NMC, owned by Netwatch Group, provides Netwatch’s top-tier remote video monitoring offering, known as proactive video monitoring By investing in Netwatch’s PVM services, partners gain the chance to offer advanced AI-driven monitoring solutions designed to enhance modern risk mitigation and crime prevention efforts With its monthly subscription model, there is also a potential for significant RMR growth But Frase was unsure that this offering could deliver on its promise

The COVID-19 pandemic in 2020 was a turning point for many businesses, and Frase Protection was no exception. As commercial properties were vacated due to stay-at-home orders, the need for effective security became more urgent than ever. Frase recalls participating in an elite dealer roundtable in May 2020, where discussions centered around the pandemic’s impact on the security industry One story, in particular, stood out: Todd Bedford, President of Lifeline Fire and Security, described how his business was using Netwatch’s PVM technology to protect vacant commercial properties, which had become targets for crime and vandalism

“This was a lightbulb moment for me, ” Frase said “Hearing Todd’s experience made me realize that AI-powered video monitoring wasn’t just another product to add to our lineup it was the future of security for high risk properties I understood then that embracing PVM was about leading the industry into a new era, where AI-driven insights could prevent incidents before they even happen And I knew that we needed to add PVM to our offerings right away. ”

Frase then set forth integrating PVM into Frase Protection’s offerings, and issued a big challenge to his sales team: sell PVM to six clients within six months.

“This was no easy task,” he said “PVM was a more complex product to sell when compared to the security systems they were accustomed to offering But I was confident in my team’s potential and believed that it could revolutionize the business ”

The challenge paid off By the second half of 2020, Frase Protection had successfully sold PVM to several businesses and more sales were on the horizon This set off a shift in focus In 2021, Frase created a new division within the company, ArcEye Property Defense, dedicated exclusively to providing PVM. This move marked a strategic effort to separate the PVM business from its traditional security installation operations. Frase even leased additional office space to accommodate the new division.

The results were remarkable. In 2022, Frase carved out ArcEye Property Defense as a separate company and RMR grew to $102,000, driven by the success of their PVM offerings But the growth didn’t stop there By December 2023, RMR had more than doubled again, reaching $225,000 This rapid expansion propelled ArcEye to the 78th position on the SDM 100 list, a well-respected ranking of the largest security companies in North America by SDM Magazine For a company that had started as a small, family-owned security business, this achievement was nothing short of extraordinary

But the journey was not without its challenges. Frase and his team had to overcome significant obstacles along the way. One of the biggest challenges was educating clients about the value of PVM Many property owners had never heard of AI-powered video monitoring, and those who had were often skeptical about its effectiveness Convincing these potential clients to invest in a new, higher-priced security solution required not only persistence but also a shift in mindset within the company Frase admits that, initially, even his own team struggled to fully grasp the technology’s potential It was only after seeing the results firsthand that they began to truly believe in its value

Despite these challenges, Frase’s commitment to PVM never wavered The company ’ s success can be attributed to several factors First, they became more than just a vendor to their clients they became partners This was important, Frase said, because he realized that, for PVM to be successful, his team needed to provide a higher level of service and support than they had with traditional alarm systems

"This meant staying in constant communication with our clients, truly understanding their specific security needs, and offering tailored solutions to meet these requirements,” said Frase “This partnership approach helped us build trust and allowed us to grow alongside our clients as they expanded their own operations "

Another key to ArcEye’s success has been its ability to adapt and innovate The company has embraced new technologies that complement PVM, such as on-demand services and alternative communication paths like 5G, which are essential for sites with limited bandwidth They have also leveraged remote working arrangements to expand their manpower without significantly increasing overhead costs By partnering with a firm that provides remote workers, Frase Protection has been able to efficiently manage their tech support and service tickets, allowing them to focus on what they do best: providing topnotch security technologies to their clients

Looking to the future, Frase sees limitless potential for growth The market for PVM is still in its early stages, with less than 10% penetration in many sectors This means there is an enormous opportunity to expand their reach and continue to innovate

"I'm excited about the future because we have the potential to help commercial properties in high-crime areas, where traditional security measures just haven't delivered the results needed,” he said “By offering a more effective solution, we can help these businesses protect their assets and give their owners the peace of mind they deserve "

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