LGU+ Revamps IPTV to OTT TV: "Netflix and TVING Are Friends, Not Competitors"

An Era Where MZ Generation Subscribes to an Average of 2.7 OTT Services
Improving Customer Viewing Experience by Switching to OTT TV
Search Netflix, Disney+, and TVING Content at Once
Enhancing Personalized Recommendation Algorithms and Providing Integrated Rankings

Jundong Park, Head of Consumer Service Group at LG Uplus (Executive Director), announced at a press conference held on the 18th at LG Uplus Yongsan headquarters that the company's IPTV service, U+tv, will be revamped as an 'OTT TV'. Photo by Minyoung Cha

[Asia Economy Reporter Minyoung Cha] "We are not trying to compete with online video service (OTT) companies. For LG Uplus, which aspires to be 'No.1 in viewing experience,' OTT companies are friends and partners."

As the influence of OTT companies such as Netflix and TVING surpassed IPTV, telecom companies focused more on forming partnerships with various OTTs. Instead of directly competing with OTT companies, an open platform that secures viewing channels and attracts customers emerged as the solution.

"Making More Customers Stay Longer"

Jundong Park, Head of Consumer Service Group (Executive Director) at LG Uplus, emphasized the company's intention to coexist with OTTs by announcing at a press conference held on the 18th at LG Uplus’s Yongsan headquarters that its IPTV service U+tv will be revamped into what is called 'OTT TV.'

OTT TV is a new concept platform that allows users to access not only OTT content but also live broadcasts and video on demand (VOD) all in one place. This is also part of LG Uplus’s 'play platform' strategy, one of its four future growth engines. The goal is to make more customers stay longer on the U+tv service.

LG Uplus turned its attention to OTT because the main viewing platform for viewers aged 20 to 40 is shifting to OTT. According to the Korea Communications Commission’s 'Broadcast Media Usage Survey,' the domestic MZ generation subscribes to an average of 2.7 OTT services simultaneously. In LG Uplus’s own survey, about 60% of users in the main target age group (20?44 years old) reported watching TV and OTT at least five days a week. Additionally, 71% responded that they watch OTT via TV.

LG Uplus’s policy is to show desired content in one place. Executive Director Park said, "The renewed U+tv provides an innovative viewing experience where users can find and watch desired content all in one place," adding, "Since OTT has deeply embedded itself in daily life, we judged that now is the time for a challenge to break down the boundaries between live broadcasts, VOD, and OTT."

Full OTT Metadata Integration... Based on Long-standing Trust

At the 'U+tv' OTT TV transition press conference held on the 18th at LG Uplus Yongsan headquarters building, a Q&A session took place. Photo by Cha Minyoung

U+tv first launched an integrated service combining IPTV with three OTTs: Netflix, Disney+, and YouTube, and plans to include TVING and Laftel early next year. In addition to OTT content, it will exclusively provide American CBS dramas and performing arts content co-produced with LG Arts Center.

The biggest feature of the revamped U+tv as OTT TV is that users can watch live broadcasts while exploring OTT content through the 'Launcher' at the bottom of the screen. When searching for desired content, it informs users which platform?live channel, VOD, or OTT?is available for viewing.

Also, U+tv integrates content recommendations including OTT on one screen and provides rankings for VOD, live channels, and trending personalities. The 'Real-time Trending Channels' include home shopping channels, and users can view popular channels by time slot.

The service also enhances recommendation algorithms with detailed profile segmentation. Profiles can be segmented into seven in total: four IPTV profiles and three Kids’ Zone profiles. When users select their IPTV profile on the launcher screen, they receive personalized content such as 'My Favorite Channels,' 'Continue Watching,' 'Frequently Used TV Apps,' and 'VOD Customized Content' based on viewing history. Netflix provides content based on its own algorithm using the most recently used profile. Starting January next year, an 'OTT·VOD Integrated Ranking' based on TV viewing history will also be offered.

An LG Uplus official explained, "Previously, IPTV only had internal metadata for live VOD, but for OTT TV, integration with external data is important. We have partnered with YouTube since 2011, and based on that trust and experience, we were able to achieve full metadata integration with OTT companies."

No Need to Replace Set-top Box... New OTT Remote and Pricing Plans Launched

U+tv can be used by any customer currently using IPTV UHD2 or higher without needing to replace the set-top box. LG Uplus also introduced an OTT remote optimized for OTT TV. The OTT remote can be purchased separately for 25,000 KRW on the official website 'Uplus.com' and will be provided free of charge to new U+tv subscribers starting January next year.

Additionally, LG Uplus will exclusively launch the ultra-compact dongle-type set-top box 'Chromecast with Google TV (4K)' domestically on the 30th. It features a simple design without complicated wiring or device exposure and includes a 'live TV service.'

Along with this revamp, LG Uplus introduced various pricing plans such as ▲ IPTV OTT plans ▲ Everyone’s Discount Pack ▲ Yudok. The IPTV OTT plans include two types: 'Premium Disney+ Plan' and 'Premium Netflix Plan,' both offering unlimited access to live channels and OTT. The Premium Disney+ Plan and Premium Netflix Plan (HD) are discounted by 1,800 KRW and 2,200 KRW respectively compared to the regular price.

The Everyone’s Discount Pack costs 8,800 KRW per month (with a one-year contract) and offers discounts of 1,500 KRW each on Netflix, Disney+, and YouTube Premium for up to three services. Paid content is also available at a 30% discount. It also provides GS Shopping coupons worth 25,000 KRW and VOD coupons worth 10,000 KRW. On the subscription platform 'Yudok,' selecting subscriptions for Netflix, Disney+, YouTube Premium, or TVING allows users to receive at least a 5% discount monthly even if they choose only one OTT. Yudok has been open to customers of other companies since this month.

LG Uplus is considering launching products that allow the use of TVING and YouTube Premium plans on IPTV starting next year.

Executive Director Park said, "U+tv will innovate customers’ media viewing experience throughout the entire journey before, during, and after viewing through coexistence and cooperation with OTT," adding, "We will create a virtuous cycle that provides new customer experiences and reflects data obtained from analyzing content consumption patterns back into new business planning."

This content was produced with the assistance of AI translation services.