Advertising is constantly entering our halls. And it doesn’t matter if you’re watching a TV channel, navigating your Smart TV’s interface, playing YouTube, or looking at the buttons on your remote control… Ads will almost always be present and it looks like they will continue to be very close with us due to the current operation of this business.

Manufacturers and service providers for smart TVs know that the ad-based business model works, and everything is as it seems, according to LG Electronics CEO William Cho. your business strategy will focus more on this aspect.

An advertising-based business model

In an official statement, Cho announced a new direction for LG Electronics focused on transforming the hardware business. towards a platform-as-a-service business model providing continuous benefits only from the moment of purchasing their products.

This means that LG’s may be more dependent on ad revenue and services that provide the user with a range of options that enable the company to generate revenue through advertising-based platforms.

“First of all, from the end of this year, LG’s TV business will undergo a major transformation based on the webOS operating system, which powers more than 200 million smart TVs worldwide. Including LG OLED TVs and LG QNED TVs, They have expanded their TV business portfolio into a “media and entertainment service provider” by expanding content, services and advertising in different competitive products.

This strategy is also influenced by its plan to invest approximately $39,500 million in R&D with the aim of reaching $79,000 million in sales revenue by 2030, a significant growth compared to its revenue in 2022 (about $51,100 million).

One of its plans to achieve this goal is to expand the webOS platform to more television manufacturers, a strategy starting in 2021, and it is already possible to see televisions with webOS not manufactured by LG in other countries.

The company will also invest in the aforementioned LG Channels, which have free channel service integrated into their televisions. According to the company, this platform increased from 20 million to 48 million users this yearIt is available in 29 countries.

“The company will invest more than KRW 1 trillion over five years to strengthen content competitiveness and accelerate the growth of LG Channels, an ad-based free streaming platform. LG Channels exceeded 20 million users in 25 countries last year, reaching 48 million in 29 countries. Quantitative To achieve growth, LG will expand customer touchpoints by increasing the rollout of its webOS platform to third-party TV brands and expand its webOS application to other product lines.”

Focusing its business model on platforms based on recurring advertising and services could also lower LG’s hardware cost, which in the future means: can offer televisions at more competitive prices and make up for this loss with your ad revenue.

While seeing how projects like Telly’s and its ad-free television offering come to light makes us understand how lucrative this business is for companies, all of this is still conjecture.

Image | xataka

via | flat panelsHD

Smart Home on Xataka | Samsung has announced its massive new LG W-OLED panel TV. This is what the fantastic QD-OLED competing alternative looks like