LG Electronics enters TV content platform market with its webOS software

South Korea’s LG Electronics Inc. is entering the TV content platform market by offering its web-based software to TV makers through a partnership with global content providers.

The electronics giant said on Feb. 24 that it will provide some 20 rival TV manufacturers with its webOS platform for smart TVs.

The TV makers, including RCA of the US, China’s Konka Group and Australia’s Ayon, will unveil smart TVs equipped with LG’s webOS platform, it said.

To attract more TV brands to use its smart TV platform, LG said it has also signed partnerships with streaming giants such as Netflix, YouTube and Amazon as well as forging business ties with technology solutions providers Realtek Semiconductor Corp. and Universal Electronics Inc.

“The openness, easy accessibility and user-friendly interface that webOS TVs offer are widely accepted in the TV market. LG is going to expand its business areas beyond hardware products into the software and content businesses,” said Park Hyoung-sei, president of LG’s home entertainment division.

SMART TVs TO DOMINATE MARKET

According to market researcher Omdia, smart TVs accounted for 84.8% of total global TV shipments in 2020, up from 71.6% in 2018. That portion is forecast to rise to more than 90% by 2024.

LG Electronics said 90% of its TV shipments last year were smart TVs, through which users can enjoy video content with an internet connection. The company shipped a total of 30 million TVs in 2020.

LG has been stepping up its software capabilities in its TV business in recent years.

Last month, the Korean company acquired a controlling stake in US-based TV data analysis startup Alphonso Inc. for $80 million to strengthen its software and service capabilities in its smart TV lineup.

FROM TV MAKER TO CONTENT PROVIDER

With the acquisition, LG Electronics hopes to transform from a TV manufacturer into a content provider.

LG operates its own streaming service, LG Channels, through which the company provides its smart TV buyers with thousands of films and other streaming content for free.

Chief Executive Kwon Bong-seok, who took the helm of the Korean home appliances giant in March 2020, has been actively pursuing acquisitions to grow the company as a digital solutions provider.

Write to Jeong-Soo Hwang at hjs@hankyung.com
In-Soo Nam edited this article.