[Comprehensive] LGU+ Partners with Disney+, IPTV and Internet from 20,000 KRW per Month... KT Also Offers Mobile Plans

[Asia Economy Reporter Seulgina Cho] "This time, it's Disney."

LG Uplus, which has greatly benefited from its partnership with Netflix, is teaming up with another global online video service (OTT giant), Disney Plus (Disney+), to target the domestic home market.

LG Uplus, the first in Korea to sign an exclusive IPTV partnership contract with Disney+, will introduce a bundled plan that allows customers to use its IPTV, internet, and Disney+ together for around 20,000 KRW per month. LG HelloVision and KT have also unveiled dedicated plans to watch Disney+ content on cable TV and mobile, respectively, ahead of Disney+'s launch in Korea.

◆ LG Uplus to Exclusively Provide Disney+ on IPTV Starting Tomorrow

On the morning of the 11th, a day before Disney+ launches in the Korean market, LG Uplus held a press conference announcing that it will offer Disney+ through its IPTV service, U+tv.

Disney+ offers content appealing to all age groups, from children to seniors, including Avengers, Star Wars, and National Geographic, making it a strong competitor to the OTT powerhouse Netflix. Jung Soo-heon, Head of LG Uplus Consumer Division, said, "We expect synergy with Disney's content," adding, "We will strive to provide differentiated customer experiences and increase the number of 'LG Uplus true fans.'"

To mark the Disney+ partnership, LG Uplus introduced a bundled plan combining IPTV and OTT. The newly launched 'Premium Disney+' plan costs 24,600 KRW per month (based on a 3-year contract with internet bundle, VAT included) and allows unlimited enjoyment of U+tv, internet, and Disney+ content.

Additionally, LG Uplus revamped the user interface (UI) to enable its customers to conveniently enjoy Disney+ on IPTV and developed a dedicated remote control. Disney+ is provided via automatic updates to the U+tv set-top box, and users can access it with a one-stop shortcut button on the remote. The company added that this was possible because it holds the highest proportion of Android OS-based set-top boxes among domestic IPTV providers.

LG Uplus will also launch a 'Disney+ Premium Pack' plan for mobile users. Subscribers to 5G plans costing 95,000 KRW or more and LTE plans in the 100,000 KRW range will receive a Disney+ subscription every month. Furthermore, to celebrate the partnership with Disney+, LG Uplus will run a promotion offering a 3-month subscription to new subscribers of IPTV, internet, and mobile services.

◆ LG Uplus Anticipates Partnership Synergy... KT Also Launches Mobile Plan

LG Uplus, which enjoyed subscriber growth by partnering with Netflix first in Korea in 2018, is expecting synergy again with Disney+. Particularly, it is significant that they secured 'OTT service superiority' by not only partnering on mobile but also holding exclusive IPTV service rights in Korea.

According to Nielsen data, the number of major OTT users in Korea grew about 82% from 35.97 million accounts in Q1 2019 to 65.47 million accounts in Q3 this year. LG Uplus's own survey also showed that customers using OTT services through U+tv nearly doubled from January last year to July this year.

LG Uplus expects that "because we can offer differentiated rates and programs compared to competitors, it will fundamentally have a positive impact on mobile and IPTV growth." Its subsidiary LG HelloVision also offers two products combining cable TV service HelloTV and Disney+: New Premium Disney+ (24,400 KRW/month) and New Basic Disney+ (21,300 KRW/month).

However, some analyses suggest that the exclusive partnership benefits LG Uplus can enjoy may not be significant. Disney+ itself has competitive pricing (9,900 KRW/month), and KT has partnered with Disney+ in the mobile sector and is expected to expand services to IPTV in the future.

When asked about the exclusivity period of the IPTV partnership at the press conference, LG Uplus officially declined to answer citing "confidentiality between the two companies." Regarding competitors responding to exclusivity by launching open set-top boxes, LG Uplus emphasized, "We enhanced convenience through a stable internet network, dedicated UI, and remote shortcut buttons," adding, "We are the only exclusive partner in Korea that has conducted joint development and testing with Disney for the optimal viewing experience."

Choi Chang-guk, Head of LG Uplus Home Media Business Group (Executive Director), attending the press conference, drew a line when asked about plans to launch IPTV and mobile plans allowing LG Uplus subscribers to use both Netflix and Disney+ simultaneously, saying, "This is not a decision we can make alone; it is linked to Disney and Netflix's business strategies."

Meanwhile, KT announced the launch of the 'Disney+ Choice' plan, which allows use of Disney+ along with its unlimited 5G data plans. Subscribers to the 5G plans Super Plan Premium Choice (130,000 KRW), Super Plan Special Choice (110,000 KRW), or Super Plan Basic Choice (90,000 KRW) can use Disney+ at no additional cost.