LG HelloVision "Is Cable TV Old-Fashioned? We Will Show You Hip Cable TV"

LG HelloVision Marketing Lab & Digital Marketing Team Interview
Attracting Subscribers with MZ Generation Customized Live Commerce 'HelloLive'
Focusing on Interactive Marketing... Online Strategy of Face-to-Face Sales That Scratches the Itch

(From left) Choi Gyuseo, Senior Marketing Lab at LG HelloVision; Gu Jieun, Senior Marketing Lab; Son Eunjeong, Senior Digital Marketing Team.

[Asia Economy Reporter Eunmo Koo] “We wanted to show that cable TV can be this hip.”

There are those who reject the notion that "cable TV is outdated." LG HelloVision, the leading cable TV operator in South Korea, has been actively attracting subscribers through its live commerce platform "Hello Live," which offers consultations on concerns of the MZ generation (Millennials + Generation Z) related to broadcasting and internet services and recommends customized products. Cable TV, once considered old media, is now aggressively targeting the MZ generation with trendy, interactive marketing.

In an interview with Asia Economy on the 11th, LG HelloVision’s Marketing Lab and Digital Marketing Team emphasized that they believed LG HelloVision’s TPS (Triple Play Service: paid broadcasting, internet, mobile) products would appeal to the MZ generation on the rapidly growing live commerce platform. It is also a sign of confidence that they unusually introduced subscription products like broadcasting and internet services, which are rarely seen in live commerce that typically focuses on food, fashion, and beauty.

Senior Marketing Lab member Kyuseo Choi said, “Since the main users of live commerce are the MZ generation, who are likely to be interested in LG HelloVision’s services, our internal analysis showed that the purchase conversion rate would be high when we entered the market. Based on this, we decided to expand awareness activities and proceed with sales of our services.”

Being a media company with in-house production capabilities also accelerated their challenge. Senior Marketing Lab member Jieun Koo explained, “Thanks to relatively low production costs, the entry barrier was not high, and we had staff who could handle directing, planning, structuring, and hosting, so there was no reason not to do it.” This aligned well with the company’s marketing policy of minimizing marketing expenses while lowering service supply prices.

Since the first broadcast in February, the results after nine episodes have been encouraging. While mainly selling the cable TV service "Hello TV" and internet service "Hello Internet," the number of consultation requests increased about threefold from the first to the eighth broadcast, and subscribers through live commerce grew about 2.5 times. As of April, MZ generation subscribers through the direct mall "Hello Shop" also increased by 44% compared to the same period last year.

Senior Digital Marketing Team member Eunjeong Son said, “Hello TV is increasingly chosen by young people who value cost-effectiveness because it offers relatively affordable prices along with access to Netflix and YouTube,” adding, “There is research showing that as subscriber age decreases, the average usage amount for video on demand (VOD) increases, which helps average revenue per user (ARPU), so we see this as meaningful.”

They attributed Hello Live’s success in eliciting responses from the MZ generation to an online version of face-to-face sales that "scratches where it itches." Considering the complexity of TPS products, they explained customers’ questions thoroughly until they understood, as if meeting face-to-face. Senior member Choi said, “Broadcasting and internet products are still complex, and even if customers search online, subscriptions often happen through sales representatives or phone consultations. We expect Hello Live to effectively replace the advantages of traditional face-to-face sales, which have been difficult due to COVID-19, through broadcasting in a non-face-to-face way.”

A representative broadcast was held last month in collaboration with a moms’ community in the Gyeongnam region to sell Hello TV services. Unlike typical live commerce, this broadcast narrowed the target to mothers raising children and focused on consulting about the Hello TV’s dedicated children’s platform "U+ Idle Nara." Senior member Koo said, “We had good responses by discussing the difficulties of raising children and providing solutions during the broadcast.”

The format of presenting it as an “entertainment-style live commerce” rather than simply moving home shopping to a mobile platform was also evaluated as effective. In particular, they conducted two broadcasts with members of the popular YouTube channel "Pisik University," and the related marketing videos surpassed 400,000 views on YouTube. This helped break the old image of cable TV. Senior member Choi said, “We wanted viewers to feel like they were watching a fun piece of content rather than an advertisement,” adding, “Many Pisik University fans came in, and ‘broadcast clips’ spread across internet communities, resulting in viral success.”

'Hello Live' broadcast screen with Pisik University.

Although the new attempt of Hello Live is receiving a good response, the cable TV industry, which is experiencing subscriber stagnation, still faces challenges. Hello Live is determined to continue efforts to find the optimal model. Senior member Choi said, “Selling long-term subscription products of several dozen months is still difficult, but we have gained confidence that we can overcome this by adding broadcasts,” adding, “We will continue to find the most suitable model for our viewers by changing variables such as broadcast time, pre-marketing period, and cast.”

Starting this month, Hello Live plans to expand the range of products sold, including the budget phone service "Hello Mobile," and to regularize broadcasts. They are also considering customized broadcasts segmented by customer characteristics such as newlyweds, college students, and parents within the MZ generation.