Free Content Released on Smart TVs... Samsung and LG Compete Globally

Separate Channel Operation Including Samsung TV Plus and LG Channel
Domestic and International Services Such as Entertainment and Drama

Samsung TV Plus [Image source=Samsung Electronics]

[Asia Economy Reporter Kim Heung-soon] The emergence of new media platforms such as IPTV and Over-The-Top (OTT) online video services is threatening the traditional TV market. The domestic home appliance industry, which has mainly focused on enhancing device usability through smart TVs, is now also putting effort into providing self-supplied content to consumers in response to this challenge. Samsung Electronics and LG Electronics exemplify this with their exclusive channels, ‘Samsung TV Plus’ and ‘LG Channel,’ respectively, which are separately established on their smart TVs.

According to industry sources on the 8th, Samsung TV Plus and LG Channel, which are offered free of charge to smart TV users, have rapidly expanded their markets domestically and internationally since their launch in 2015. As of this month, Samsung TV Plus operates a total of 742 channels across 13 countries including South Korea, the United States, Canada, the United Kingdom, France, and Germany. This year, the plan is to double the number of service countries.

Samsung TV Plus is a service that allows users to enjoy movies, dramas, entertainment, news, sports, and other content for free on independent channels simply by connecting their smart TV to the internet without any separate application. The content provided prioritizes popular local genres by country. A Samsung Electronics official stated, "Local subsidiaries as well as dedicated domestic personnel are involved in sourcing content," adding, "From the consumer’s perspective, the amount of free content available through smart TVs is increasing, and content distributors are satisfied because they can secure more users."

LG Channel [Image source=LG Electronics]

LG Channel also started in 2015 with 50 channels and expanded its service scope to 1,617 channels across 14 countries by last year. Among the TVs LG Electronics ships worldwide, over 83% are smart TVs, and the number of countries offering LG Channel is expected to increase in the future. An LG Electronics official said, "We source local content by country and provide it for free, and in some countries such as those in Europe, we also offer Hallyu content like K-pop, which has high interest."

Last month, LG Electronics signed an acquisition agreement to secure more than 50% of the shares of ‘Alphonso,’ a TV advertising and content data analytics specialist headquartered in Silicon Valley, USA. This is a strategic move to expand from the traditional business model focused on TV manufacturing to services, content, and software sectors. The plan is to utilize Alphonso’s consumer characteristic analysis capabilities to provide segmented services and content to smart TV and LG Channel users.

According to the ‘2020 Broadcasting Media Usage Survey’ recently announced by the Korea Communications Commission, 67.2% of people recognize smartphones as an essential medium in daily life, more than twice the 29.5% for TV. The shift of major video content viewing platforms to smart devices poses a challenge for TV operators.

An industry insider explained, "IPTV and OTT have the advantage of personalized services that analyze data on frequently viewed video content by users and provide recommendation functions," adding, "Attempts to provide free content linked with smart TVs and to understand consumer characteristics are also closely related to this competition for dominance."