LG Electronics to transform TVs into a platform business and grow service revenue

LG Electronics is concentrating its capabilities on a platform business based on TV operating systems (OS) because this is a strategy to reduce dependence on hardware and expand service-based revenue.

In the US market, content centered on platforms, such as the “Dog World Cup,” is reportedly receiving a strong response. This consumption pattern is turning TVs from simple hardware into content hubs.

Hardware-centered home appliance businesses experience significant fluctuations in revenue depending on market conditions. The article introduced operating systems and platform-based services as a solution for reducing this volatility.

LG Electronics said it would strengthen its software, content, and service capabilities. The company plans to expand platform revenue from TVs through services such as app stores and subscriptions.

The platform business includes recurring revenue streams such as app distribution, content partnerships, and subscription revenue. The article reported that these revenues complement hardware seasonality.

LG Electronics explained that it emphasizes user experience and securing content in platform competition. No specific partnerships or figures were presented in the article.

The report shows that the global TV industry is shifting its focus from competition over product performance to competition over operating systems and services. LG Electronics said it is pursuing a strategic transition in response.