South Korean TV giants, Samsung and LG are shifting toward becoming platform-based companies to diversify revenue sources, as traditional TV sales have become less profitable.
To address this, these firms are now incorporating proprietary operating systems (OS) into their TVs, enabling them to stream movies and dramas in real-time while generating revenue from in-stream ads. This transition is transforming the industry, allowing TV makers to maximize returns from their products, much like smartphone platforms do.
Samsung Electronics made a significant move in this direction last month by launching Samsung TV Plus in the United States, in partnership with major S. Korean media companies like CJ ENM, New ID, and KT Alpha.
Through Samsung TV Plus, U.S. consumers who own a Samsung TV can enjoy free access to over 4,000 hours of Korean content—so long as they watch intermittent ads. This includes popular Korean shows such as Three Meals a Day and Street Woman Fighter 2, as well as blockbuster films like Assassination and Ode to My Father.
With more than 3,000 channels available in 30 countries and a library exceeding 50,000 titles, Samsung TV Plus has seen rapid growth, with its service revenue surpassing $750 million in 2021. Samsung aims to double last year’s viewership hours from 5 billion to 10 billion in 2024, according to a company representative.
LG Electronics is similarly expanding its smart TV platform, webOS, to cater to a global audience. The company’s LG Channel, which currently operates in 29 countries with over 3,800 channels, opened LG Showcase, a premium content channel, in North America in June of last year.
LG Showcase offers films from global studios such as MGM and Lionsgate, and LG is in discussions with Sony and Paramount to further expand its content. By 2027, LG plans to invest nearly $709 million to acquire exclusive rights to new dramas, movies, and premium content.
In fact, LG’s revenue from TV content services is expected to exceed $709 million this year, with its content division reportedly achieving double-digit operating margins. Content services now account for about one-third of LG’s TV segment operating profits, which analysts project at around $236 million.
The shift toward content-based revenue models reflects the declining role of TVs as essential home electronics. Over the past decade, the rise of smartphones has lessened the TV’s prominence, and many households now choose to forego traditional TVs in their living rooms altogether. In a 2023 survey by the Korea Communications Commission, only 27.2% of respondents considered TV a necessity—a significant drop from its top rank in 2014 when it was first surpassed by smartphones.
Further impacting profitability, competition from Chinese manufacturers has led to stagnant or even falling TV prices. In response, S. Korean TV makers are positioning themselves as content providers, making a calculated shift to redefine how consumers experience television.
