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LG Electronics plans to earn additional income from its customers by using advertisements and subscription offers for its home appliances and televisions. The move is part of a plan to increase the South Korean tech giant’s revenue from $51 billion last year to $79 billion by 2030. Part of this growth strategy is to offer webOS (the operating system for LG smart TVs) to other brands of TV manufacturers and other products.
William ChoThe CEO of LG announced a few days before his company’s decision to become a provider of smart life solutions. This Korean brand seeks to diversify its current business portfolio and create a business model focused on customer interaction. In fact, LG’s new strategy introduces a platform-based service business model that makes it earn additional and continuous profits from segments such as content and services, subscriptions, and solutions in the product portfolio.
written by VergeLG plans to achieve its vision of becoming a company that provides smart life solutions; An action that connects and expands different customer experiences. Chu “We will create a completely new LG by reinventing the way we work and communicate to achieve this goal,” he says.
LG has announced that its smart TV business will be the first division to become a media and entertainment service provider using the new strategy. Later this year, the company will make changes to the webOS TV software that will allow the expansion of content, services and advertising on products such as OLED and QNED TVs. According to the announcement of the Korean brand, the webOS platform is currently running on more than 200 million smart TVs worldwide. This company also plans to offer the mentioned software in the next five years in TVs of other brands as well as other products other than its own devices.
Subscriptions will also play an important role in LG’s range of home appliances. According to the South Korean tech giant’s press release, the company aims to increase the development of LG ThinQ UP devices, which customers can use to upgrade the performance of the products even after purchasing them. Last year, LG Smart Home Services introduced a line of upgradable ThinQ appliances designed to be updated with new features through the ThinQ app. Currently, some car manufacturers also use a similar business model and receive money from their customers in exchange for activating some features.
It is hard to imagine that LG’s proposed changes will be welcomed by consumers. As The Register points out, the large number of services using subscription models in recent years has raised concerns about subscription fatigue, a term used to refer to consumers who are faced with too many subscription service offerings.
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