LG Electronics has unveiled plans to boost its revenue and transform itself into a “smart life solution company” by focusing on advertising and subscription offerings for its home appliances and televisions. The company aims to increase its global annual revenue from $51 billion in 2022 to nearly $79 billion by 2030.
LG’s growth strategy includes expanding the reach of its webOS operating system, which powers LG smart TVs, to external TV brands and other product groups. This move will allow LG to generate more profits through content and services, subscriptions, and solutions across its product portfolio.
LG CEO William Cho explained that the company aims to connect and expand customers’ various spaces and experiences, moving away from its current position as a leading home appliance brand to become a smart life solution provider. Cho emphasized the need to reinvent the way LG works and communicates with consumers to achieve this vision.
The company’s TV business will be the first to transition to the new business model. LG plans to introduce changes to its webOS TV software, enabling the expansion of content, services, and advertisements on products such as OLED and QNED TVs. Currently, the webOS platform is running on over 200 million smart TVs worldwide. LG also intends to extend the webOS software to external television brands and non-TV hardware within the LG product family over the next five years.
In addition to its TV business, LG will introduce subscriptions and further evolve its range of household appliances, known as LG ThinQ UP. These appliances can be upgraded with new functions through the ThinQ app. LG aims to create a “Home as a Service platform” by offering personalization options, subscription services, and support for smart home services.
While LG’s plans may seem promising, there are concerns about the increasing trend of subscription offerings. The rise of subscription models across various industries has led to “subscription fatigue” among consumers, who feel overwhelmed by multiple subscriptions. The US Federal Trade Commission has proposed stricter regulations to address nonconsensual billing and the intentional difficulty of canceling subscriptions.
Despite potential challenges, LG Electronics is committed to transforming itself into a smart life solution company by leveraging advertising, subscriptions, and platform-based services to enhance its customers’ experiences. The company’s ambitious growth strategy aims to drive revenue and establish a new brand identity in the market. With its focus on innovation and customer engagement, LG hopes to meet the evolving needs of consumers in the digital age.
