LG Electronics who are building a multibillion dollar revenue chain selling data, subscription and media services on their customers, is set to make consumers who buy their appliances pay a subscription to access to certain services that other brands offer for free, with new revenue initiatives set to be revealed at IFA 2024.
The Company admits that they are looking to grow revenues from US$50 billion to over $80 billion over the next five years primarily due to the sale of data, subscriptions and getting brands to advertise via LG TVs instead of using free to air TV networks.
At use IFA 2024 in Berlin the Company is set to roll out new revenue streams following their acquisition of a home automation Company that will allow them to capture even more data.
The South Korean Company solar division was recently slammed for failing to put effort into recalling highly dangerous solar batteries that exploded and caused house fires is set to roll out their ‘Intelligent Home initiative’ that uses AI in the home to capture additional data other than what they currently capture and sell via their TVs and appliances.
The Company claims that “At LG’s large-scale booth, located in Hall 18 at Messe Berlin, visitors can experience the elevated quality of life made possible by the company’s diverse lineup of AI home solutions. In addition to introducing its newest offerings powered by Affectionate Intelligence”.
Management have not said what ‘Affectionate Intelligence’ actually is.
Consumers research by the Australian Competition & Consumer Commission reveals that over 74% of consumers don’t want brands such as LG Electronics, Google and Facebook capturing data on their personal lives.
This has not stopped the Company from pushing on with their media, subscription and data capture initiatives.
“LG will innovate with a platform-based service business model that continuously generates profits, such as content and services, subscriptions and solutions, to the hardware-oriented businesses, which generate sales and profits at the time of purchase,” the company said recently.
LG claims that their new data revenue and subscription service which is still being rolled out in Australia is called a “customer engagement” centred business model’.
By surreptitiously capturing data using their TV’s which consumers have to activate by accepting LG’s questionable terms & conditions turn the company is trying to turn themselves into a media and entertainment service provider.
The launch of subscription media using the Companies ThinQ UP and WebOS software is already upsetting consumers if social media comments are anything to go by.
CEO William Cho has described transformation for LG to a “smart life solutions company,” a goal he’s hoping to hit by 2030.
The Company appears to be ignoring signs that consumers are tiring of subscriptions: the term “subscription fatigue” has emerged to describe the frustration consumers feel when their credit card statements reveal growing numbers of monthly membership payments to organisations such as LG.
Regulators have also noticed some sharp subscription practices, especially deterrents to cancellation. The US Federal Trade Commission (FTC) recently considered stronger regulations of the business model and the Australian Competition & Consumer Commission who has fined LG in the past for questionable business practises is also looking at the warranty and terms and conditions of several Companies who have subscription services tied to their hardware use.
It appears that LG is undeterred by such controversies with the Company only seeing revenue growth from selling consumer data including predicting how their customers will vote.
