LG to offer subscriptions for appliances and televisions
- Reference: 1689276666
- News link: https://www.theregister.co.uk/2023/07/13/lg_smart_life_solutions_strategy/
- Source link:
“LG will innovate with a platform-based service business model that continuously generates profits, such as content and services, subscriptions and solutions, to the hardware-oriented businesses, which generate sales and profits at the time of purchase,” the company [1]said on Wednesday.
LG called this a “customer engagement” centered business model that relies on appliances already present in customers' homes, such as 200-million strong fleet of its smart TVS currently already in use. Those tellies, including the premium end OLED and QNED TVs, will soon have content, services and product ads expanded in an attempt to turn the company into a media and entertainment service provider.
[2]
LG has already offered a taste of its intentions: in 2022 it [3]revealed a scheme called “Evolving Appliances For You" that promised software upgrades to home appliances. The company offered the example of a family that moves to a different home, and different climate, and upgrades its clothes drier with routines suited to local conditions.
[4]
[5]
The entrance to subscription media comprises part of what CEO William Cho [6]described on Wednesday as a transformation for LG to a “smart life solutions company,” a goal he’s hoping to hit by 2030.
LG's subscription-fueled growth plan comes amid an explosion in such services. IBM [7]found 300 percent growth in subscriptions in the decade to 2022.
[8]
But there are also signs consumers are tiring of subscriptions: the term "subscription fatigue" has emerged to describe the frustration consumers feel when their credit card statements reveal growing numbers of monthly membership payments.
Regulators have also noticed some sharp subscription practices, especially deterrents to cancellation. The US Federal Trade Commission (FTC) recently [9]considered stronger regulations of the business model.
[10]You're too dumb to use click-to-cancel, Big Biz says with straight face
[11]LG debuts thin malleable screens made from contact lens material
[12]LG promises to make home appliance software upgradeable to take on new tasks
[13]LG makes a TV roughly the size of a queen-sized bed
LG is undeterred by such controversies. And seemingly also unworried that punters might push back. But tally-ho, revenues must significantly increase, despite 2022 pulling in LG’s highest annual revenue ever. LG [14]attributed that success to “strong demand for premium home appliances and automotive parts.”
There’s only so many premium home appliance a company can sell, it seems, so LG is intent on trying to capitalize on that market in a different way.
It also wants to turn its electric vehicle business into a component part provider worth more than $20.9 billion by 2030, which it seems confident it can do given it expects its backlog in its vehicle components unit to reach $104.5 billion by the end of the year.
[15]
LG's strategy announcement comes after it “boldly” exited its loss-making mobile phone and solar panel business to “focus on future high-growth areas.” ®
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[1] https://www.lgnewsroom.com/2023/07/key-elements-of-lgs-bold-vision-to-transform-lg-into-smart-life-solutions-company/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZLB0CkbFYr6@9hZkNEJoaQAAA1U&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2022/01/25/lg_upgradeable_appliances/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZLB0CkbFYr6@9hZkNEJoaQAAA1U&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZLB0CkbFYr6@9hZkNEJoaQAAA1U&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.lgnewsroom.com/2023/07/lg-ceo-announces-bold-vision-to-transform-lg-into-smart-life-solutions-company/
[7] https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/subscription-business-model
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZLB0CkbFYr6@9hZkNEJoaQAAA1U&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2023/07/12/ftc_cancel_subscriptions/
[10] https://www.theregister.com/2023/07/12/ftc_cancel_subscriptions/
[11] https://www.theregister.com/2022/11/09/lg_debuts_thin_malleable_screens/
[12] https://www.theregister.com/2022/01/25/lg_upgradeable_appliances/
[13] https://www.theregister.com/2022/08/29/lg_oled_tv/
[14] https://www.lgnewsroom.com/2023/01/lg-announces-2022-financial-results/
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZLB0CkbFYr6@9hZkNEJoaQAAA1U&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[16] https://whitepapers.theregister.com/
Re: Wrong
I agree.
Although they are stating they will "offer" subscriptions, i can foresee that they may not offer some new features to those who don't subscribe.
When OLED's first came out from LG they were curved screen. I wrote to LG askign when they will produce flat screen OLED TV's and they stated at the time they will forthcoming, yet it took 1 year. Their marketing dept obviously got it wrong as most TV's are flat screen. (Currys only sell curved monitors)
Corporate greed really does create stupid ideas.
Rent seeking
Everyone is now rent seeking, leeching their victims, I mean, customers.
Just put your favourite stick into the HDMI and ignore the Smart TV of the day, be it LG, Samsung, TCL or whatever..
Re: Rent seeking
But how long before companies make that usage painful by infiltrating it with ads? At some point newer TVs will become too annoying and there will be a vibrant market for used TVs on eBay/Craigslist/etc.
Better yet if someone can root an LG TV and allow installing a minimal OS that supports using HDMI ports. I don't even care if stuff like the tuner won't work when you do that. All I need is HDMI, volume control, and to select between a few picture presets - i.e. just like the monitor I'm using while typing this post!
Netflix's bubble valuation really screwed consumers over, because every company envious of their stock price decided they needed to figure out a way to get subscription revenue. So now cars, TVs, and even appliances are being crudded up by this crap. Maybe if the EU passes some laws to reign it in there will be a way to put a device in "EU mode" when you buy it in the US...one can dream!
Re: Rent seeking
I completely agree. My current device is a BenQ 4K projector - my previous was an acer 1080p - projectors are just about the last display you can buy that is "dumb"
Re: Rent seeking
favourite stick into the HDMI
The streaming services available on many (most?) of those sticks are already infested by adverts. I've given up on subscription services, for the little amount of TV I watch I record linear TV so I can skip the ads when I watch it later. If that becomes impossible, I'll just give up on TV. 95% of it is crap anyway.
Re: Rent seeking
Everyone is now rent seeking, leeching their victims, I mean, customers.
Exactly. Real innovation and benefit for the buyer is dead.
Planned obsolescence wasn't enough. Now it's subscription everything AND planned obsolescence.
Thanks, I don't need it that bad.
Spawn of Satan
This is why my TVs never get to connect to the internet. They are just dumb display devices. And at the rate things are going they definitely never will.
Re: Spawn of Satan
Absolutely! Same here, and the PVR doesn't get a connection either.
A platform-based service business model that continuously generates profits
Chaebollocks to that.
“Evolving Appliances For You” and the return of Orwells' Telescreens
‘“Evolving Appliances For You" that promised software upgrades to home appliances. The company offered the example of a family that moves to a different home, and different climate, and upgrades its clothes drier with routines suited to local conditions.’
Wouldn't it be better if I had control of my own devices and could update the routines on my own.
Re: “Evolving Appliances For You” and the return of Orwells' Telescreens
'The company offered the example of a family that moves to a different home, and different climate, and upgrades its clothes drier with routines suited to local conditions.’
Err, why does a Brabantia rotating clothes drier need "routines", whatever they are. You peg the clothes out, they blow around for a while, tehn you bring them in and put them on an airer to finish them off if necessary. No appliances, no evolution.
Hell no
I do not want any Korean advertising culture in my home. Korea is what motivated me to host my own mail server long ago so I could block hundreds of daily spams coming from LG's cesspit of a network. LG has toned it down slightly for the US but they still don't understand that we don't want pop-up ads flashing on TVs that we purchased. We don't want to opt-in to activating spyware that delivers nothing but more ads.
If you have an LG TV and you want a horrific dose of what LG has in mind, tune to channel "IP0". It's a vivid pop-culture advertising vomit with flickering video glitches. It's worse than the dark corners of Roku where you'll find dozens of channels streaming VHS tape rips mixed with scam ads.
It's a shame LG dropped their cellphone and solar divisions because their hardware is pretty good.
I bought an OLED TV from them 2 years ago
On first start, ths flagship 'Smart' TV demanded I agree to their egregious terms and conditions allowing perpetual, invasive abuse of personal information by LG, world+dog. Given the TV had microphones, and built-in spy-cams on the bottom- 'to adjust screen settings to the surroundings', I wasn't keen. And as their Ts&Cs allow mining of all data generated by your use of the device- including its cameras. Even records your acceptance to ad-spaffing. The nag remains unanswered, ever since- and all the 'Smart' TV functions have been blocked from use.
Shortly after realised the sound on this top-of the range TV was really poor (distorted), so went to request warranty service. Over the phone and online, agreement to Ts&Cs was placed in the way of any request. Cancelled out. What Asshats! Will never, ever, buy another LG product.
Luckily for me I can still use it as a dumb TV.
However the annoying nags pop up every time you hit the wrong button on the remote. Their TVs are hunks of junk, marketed by a recalcitrant management team.
If only there was an open OS that could be flashed onto all these dumb, 'Smart TVs', but alas...
Re: I bought an expensive OLED TV from LG...
I had to agree to bs ts & C's with my recent Sony TV.
I couldn't even use it without agreeing to Google's crap.
I can't use the iPlayer app unless I agree to some non-bbc ts & C's, why?
I'll agree to the BBC's iPlayer TS and C's directly, thank you very much.
I wish is just bought a dumb ilyama display instead ;(
upgrades its clothes drier with routines suited to local conditions
Why? If the clothes dryer is smart enough (in other words, not a rotating drum that sort of warms up a bit), it should be able to set itself for the current conditions. If it can't, then sorry, it can stay in the shop.
By the way, my clothes dryer is a bit of rope strung up between two of the structural supports of the roof of the hangar out back. Might be a little slow at drying in the winter, but the energy consumption is exactly zero.
Not again
Samsung tried this a couple of years ago, I blocked the add "service" on my firewall but in the end Samsung backed down due to customer outrage. LG will probably end up doing the same but not before loosing or alienating a load of customers.
Ground breaking concept...
LG to introduce new Smart TV & appliance rental service - forms new division LGranada TV Rental.
So we'll be glued to their sets, not stuck with them, then?
Strikes, the 3-day week, roaring inflation, summer heatwaves. If you enjoyed the seventies, get that brown corduroy out of the cupboard, put the vinyl on and enjoy.
Delivery Services not TVs
At a holiday home, turned on the TV. It was an Amazon TV which meant not even allowed to watch terrestrial TV without logging into Amazon account! This was basically an Amazon Fire tablet with a larger screen.
You ever looked at a modern TV with a PiHole device? The flood of phone-home data to Samsung, LG, etc. is scary.
And really - who would want the kinda junk on the LG channels? Can we force the CEO of these companies to suffer their own services.
The positives of this crap is it makes it easier to give up on these "TV Services" and find something better to do with life than consume this mess.
Wrong
They'd be wrong. There's no way I'm gonna continue for my TV to keep working after I bought it.
Any consumer electronics company too stupid to see this shouldn't be in business in the first place.