LG Uplus is on a roll in the Internet Protocol television (IPTV) business on the back of the “Netflix effect.” With acquisition of CJ Hello, it is expected to become a leader in the media market.
LG Uplus announced on May 2 that the acquisition of CJ Hello will increase synergy in its IPTV. LG Uplus decided in February to acquire 50 percent plus one shares of CJ Hello owned by CJ ENM for 800 billion won (US$683 million). Once the acquisition process is completed, the two companies' combined market share will jump to 24.43 percent (as of the first half of last year) and rank second in the IPTV market, following KT and KT Skylife that control 30.86 percent of Korea’s paid TV market.
In particular, LG Uplus emphasized that the Netflix effect is leading to an increase in the number of subscribers. CFO Lee Hyeok-ju said, "The growth of Netflix subscribers increased both basic profits and profits from additional services, such as device installation.”
"It is difficult to lay out the exact figures, but we think that Netflix subscribers account for 30 percent of the total 5G subscribers. We think that the trend of 5G subscriber growth is better compared to 4G LTE," Lee added.