LGU+, 'Idulnara' Long-term Spin-off... VC and PE Investment Attraction Underway

[Asia Economy Reporter Park So-yeon] LG Uplus is planning a mid- to long-term spin-off of its kids-only OTT service 'Idleulnara' and is currently conducting investment attraction. Recently, Idleulnara changed its business model from an IPTV-based infant media platform to a mobile-based OTT service.

On the 23rd, Park Jong-wook, Executive Vice President and Head of Idleulnara Business, stated at a briefing held at the NH Capital headquarters building in Yeouido, Seoul, "We launched the OTT service this month, and we plan to decide the timing of the spin-off based on subscriber trends and business performance."

Park said, "We plan to spin off when the business viability is somewhat verified," adding, "We recently held an investment briefing targeting venture capital (VC) and private equity funds."

He added, "I think it is most natural and preferable to receive investment when we achieve good business results and gain some recognition of value."

He mentioned, "The timing of the spin-off might still be a distant matter, but if the recently launched service receives a good response from customers and attracts subscribers, it could happen sooner."

He continued, "Idleulnara currently has 130 team members, and although the spin-off has not yet occurred, it is operated in an almost independent manner."

Idleulnara aims to reach 150,000 paid subscribers by the end of next year. The goal is to achieve 1 million domestic and international subscribers by 2027.

Park emphasized, "Several domestic educational companies have secured about 100,000 subscribers. We want to surpass this 100,000 limit internally and achieve the goal of 150,000 subscribers by the end of this year or next year."

Launched in 2017, Idleulnara was introduced as an IPTV value-added service for U+tv customers who wanted to show beneficial content to their children. Over five years, it has played a key role as a 'cash cow platform,' increasing IPTV subscribers by 1.5 times.

LG Uplus is fully revamping Idleulnara into a kids OTT service with the goal of providing a service used by the entire nation. Previously, only LG Uplus IPTV subscribers could use it, but now Idleulnara has opened its doors to subscribers of other telecommunications services as well.

The newly transformed Idleulnara, as a 'growth care' platform, features approximately 50,000 pieces of content including about 10,000 interactive contents that children can directly participate in, a personalized content recommendation service based on 1,200 detailed metadata categories, and a growth report for children based on usage history, aiming to actively expand digital touchpoints not only with children aged 3 to 9 but also with parents in their 20s to 40s.