LG Electronics is expanding its content ecosystem beyond household appliances to mobility by installing its own OTT service, LG Channel, into Hyundai and Kia vehicles.
According to the electronics industry on March 18, LG Electronics started the LG Channel service in Hyundai and Kia vehicles from January. It was first applied to the Genesis G80 model and has now expanded to include the Genesis GV80 and Carnival models. This marks the first time the LG Channel service has been launched for vehicles. LG Channel is LG Electronics’ unique ad-supported free streaming service (FAST/Free Advertising Streaming TV), similar in concept to free OTT services.
An LG Electronics official stated, “In the vehicle LG Channel, you can watch about 80 domestic channels and over 60 VOD titles including movies, dramas, and animations without needing to register.” They added, “In the future, we plan to expand the service to the same level as on our smart TVs.”
According to market research firm Statista, the FAST market size is expected to reach US$12 billion by 2027. LG Electronics views its content partnership with the Hyundai Motor Group as an opportunity to secure advertising revenue and to apply the webOS content platform to various devices.
WebOS is an operating system like Android and iOS, developed in-house by LG Electronics. On TVs equipped with webOS, LG Channel content can be enjoyed without any additional procedures.
In the mobility industry, Software-Defined Vehicles (SDV) are emerging as a hot topic. As the transition to SDVs accelerates, the market for In-Vehicle Infotainment (IVI) systems is also entering a growth phase. Market research firm Presidents Research suggests that the IVI market size could grow to US$59 billion by 2032.
In response, LG Electronics and Hyundai and Kia have continued their cooperative relationship. In November last year, LG Electronics agreed to supply IVI systems incorporating webOS to Hyundai and Kia. Through this, LG Electronics aims to strengthen its electronic components and content business. For Hyundai and Kia, forming a content alliance with LG Electronics holds significance following partnerships with YouTube and Netflix.
LG Electronics is not only cooperating with Hyundai and Kia but also with global automobile manufacturers. On March 11 and 12, Cho Joo-wan, CEO of LG Electronics, visited the Mercedes-Benz headquarters with executives from LG Group affiliates. LG Electronics supplies IVI systems to Mercedes-Benz.