Amid slowing development within the conventional telecom sector, LG U+ is doubling down on its non-telecom companies with a give attention to subscription-based companies and content material.
LG U Plus CEO Hwang Hyun-sik mentioned at a press convention on the Ambassador Seoul-a Pullman Lodge on Thursday, “We have now determined to provide you with companies that prospects can spend extra time with, and with such companies.” The platform could be expanded based mostly on that.” in central Seoul.
Hwang mentioned the LG U Plus will give attention to “platform companies” that join prospects with service suppliers, a technique the corporate calls “U+ 3.0.”
The LG U+ is “struggling to discover a breakthrough” as a result of it was “shedding out to platform firms small and huge in providing customer-centric companies and understanding prospects,” Hwang mentioned.
“We concluded that … we wanted to depart the way in which we had been and begin anew.”
LG U+ has the fewest subscribers of the three telecommunications firms in Korea. In line with the Ministry of Science and ICT, SK Telecom had 41 per cent market share in July, whereas KT had 23 per cent and LG U+ 21 per cent.
LG U+ expects to extend its non-telecom ratio of income to 40 p.c by 2027 from 20 p.c final yr. The corporate additionally desires its enterprise worth — the sum of market cap and web debt — to achieve 12 trillion gained ($8.6 billion). In 5 years, nearly double that of the earlier yr.
The brand new marketing strategy contains 4 pillars: a data-driven life-style service; an leisure and content material service; a toddler and training materials service; and Net 3.0 companies together with companies akin to non-fungible tokens, metaverses, and start-up investments.
LG U+ launched a subscription administration service in July that provides native prospects reductions for numerous subscription companies once they subscribe to service suppliers via the LG U+. The corporate hopes to broaden such subscription-based life-style companies into areas akin to healthcare, pet care and journey.
LG U+ plans to broaden its video content material line-up based mostly on consumer information evaluation, and goals to provide you with a subscription-based child content material service, “Children Netflix.”
Different telecom firms are additionally eyeing non-telecom companies for future development. KT goals to extend the proportion of its non-telecom income to 50 p.c by 2025 from the present 41 p.c. SK Telecom is working its personal metaverse service known as Island, in addition to subscription administration and digital assistant companies.
by Shin Ha-ni [[email protected]]