LG Elec to expand ad-supported streaming service with TV OS

LAS VEGAS -- LG Electronics Inc., the leading global home appliance maker, plans to expand its free ad-supported streaming television (FAST) business to ramp up its presence in the media and entertainment industries while targeting a 50% jump in the number of TVs equipped with its operating system across the world.

LG on Wednesday unveiled strategies for its TV businesses, including its FAST service, which offers traditional television programming, studio-produced movies and webOS without a paid subscription, funded exclusively through advertising.

The South Korean tech giant aims to increase the number of webOS-installed TVs to 300 million units by 2026 from the current 200 million units. The OS is globally used by more than 300 TV brands, according to the company.

LG is set to boost its earnings from the FAST business through the increase as more TV viewers and higher viewing time typically raise the profits of the service.

The global FAST industry is quickly growing with the market forecasted to nearly double to $12 billion in 2027 from a predicted $6.3 billion this year, according to London-based tech research firm Omdia.

LG’s revenue related to webOS was estimated to have approached 1 trillion won ($760.2 million) for the first time last year due to the rapid growth in the FAST industry.

NEW PRODUCTS TO RAISE SALES

LG, the world’s No. 2 TV maker by sales, aims to raise TV sales with new products.

The LG Signature OLED T, an organic light-emitting diode (OLED) TV with a transparent display unveiled at the Consumer Electric Show (CES) 2024, won the Best of CES 2024 award from Engadget, the official partner of the prize at the world’s largest tech trade show in Las Vegas.

The world’s first transparent and wireless OLED TV has a glass-like display, which provides the clear image quality of OLED models. LG’s next-generation radio signal transmission technology removes all wires except a power cable.

Late last year, LGFF unveiled a 98-inch quantum-dot nano cell emitting diode (QNED) TV, a premium liquid-crystal display (LCD) model.

LG is confident in its ability to compete with Chinese makers such as TCL Technology and Hisense Group in the TV market.

“Chinese rivals’ market shares are high due to their strong local sales,” said Baek Sun-pil, vice president of LG’s home entertainment division, on the sidelines of CES 2024.

“Excluding China, LG has an overwhelmingly dominant position compared with these Chinese rivals. Their TVs have not been able to match the design and quality of LG TVs.”

Write to Ik-Hwan Kim at lovepen@hankyung.com
 

Jongwoo Cheon edited this article.