Stagnant TV Business... Samsung and LG Break Through 15 Trillion Won 'FAST Market'

FAST Strategy Revealed at IFA 2024

Samsung Electronics' ad-supported free streaming TV (FAST) platform, ‘Samsung TV Plus,’ is expected to surpass 10 billion hours of global cumulative viewing time next year. This means it will have more than doubled in growth within two years since surpassing 5 billion hours last year.

On the 8th (local time), Kim Yong-su, Vice President of Samsung Electronics’ Visual Display Business, met with reporters in Berlin, Germany, where IFA 2024 is being held, and said, "Samsung TV Plus currently offers about 3,000 channels and over 50,000 VODs in 27 countries," adding, "Following last year’s global cumulative annual viewing time of approximately 5 billion hours, it is expected to exceed 10 billion hours in 2025."

At IFA 2024, Kim Yong-su, Vice President of Samsung Electronics' Visual Display Business Division, is explaining 'Samsung TV Plus.'
[Photo by Samsung Electronics]

FAST is a service that allows users to enjoy various content such as news, entertainment, dramas, and current affairs for free without subscribing to IPTV or cable TV. This service requires viewers to watch ads without skipping, which is why it is considered highly effective for advertising. As a result, it is regarded as a preferred platform among advertisers. The popularity of FAST is rapidly spreading, especially in North America and the UK, where paid broadcasting such as cable TV is expensive. According to market research firm Omdia, the FAST market size is expected to reach $12 billion (15 trillion KRW) by 2027.

Samsung Electronics and LG Electronics are expanding their businesses by positioning FAST as a new growth breakthrough amid a stagnant TV market. ‘Samsung TV Plus’ is an ad-supported free streaming service based on the ‘Tizen OS,’ and currently, there are 270 million smart TVs worldwide equipped with Tizen OS. Vice President Kim explained, "The Tizen OS-based service business surpassed 1 trillion KRW in sales in 2021."

LG Electronics operates the FAST platform ‘LG Channels.’ LG Channels provides more than 3,800 channels in 29 countries globally. LG Channels also operates on LG Electronics’ proprietary smart TV platform, ‘webOS.’ Currently, about 400 external TV manufacturers adopt LG’s webOS, and the number of webOS-equipped smart TVs sold through these manufacturers has exceeded 10 million units.

Both companies are strengthening their competitiveness by offering premium content across various genres. Due to the nature of free content, there are limitations in providing the latest content, so beyond contracting with CP (Content Provider) companies, they directly select, purchase, and supply content.

LG Electronics recently launched the premium content specialty channel ‘LG Showcase’ in the North American market. An LG Electronics official said, "This channel directly purchases and provides premium content from major content partners such as MGM and Lionsgate," adding, "We are also preparing to add more content through partnerships with SONY and Paramount." LG Electronics plans to invest more than 1 trillion KRW by 2027 to strengthen its business capabilities.

Samsung TV Plus is diversifying its services by introducing popular influencer VOD content targeting the MZ generation, who are familiar with short-form and mid-form content, as well as live streaming of sports games including movies, sports, music, children’s, and educational content. In South Korea, it has broadcasted the ‘KLPGA Tour’ live, and in Europe, ‘Euro 2024,’ attracting attention from viewers both domestically and internationally. It also offers famous overseas IP (intellectual property) channels worldwide. On the 4th, it introduced the famous American comedian show ‘Conan O’Brien’ for the first time on a domestic streaming service.

Vice President Kim emphasized, "Samsung Electronics plans to advance AI-based personalized content recommendations by comprehensively analyzing users’ TV and mobile viewing histories," adding, "We aim to provide a concept that discovers good content whenever the user wants."