While known for its hardware, LG Electronics is quietly executing a software-centric strategy that could significantly diversify its revenue. At the heart of this is webOS, its smart TV operating system.
The webOS Platform Strategy:
From Proprietary to Open Platform: Originally developed for LG Smart TVs, webOS has been licensed to other TV manufacturers globally. Companies like RCA, Ayonz, and several others now use webOS, turning it from an in-house system into a platform business.
Growing Ecosystem: Each webOS device, whether an LG TV or a partner’s TV, adds to the total user base. This larger ecosystem is more attractive to app developers (like Netflix, Disney+, and YouTube) and advertisers, creating a virtuous cycle.
Venturing Beyond TVs: LG’s most ambitious move is extending webOS into new device categories. The company has launched webOS Hub for smart monitors and is exploring its use in smart projectors, hotel TVs, and even automotive infotainment systems. The recent introduction of the webOS Launchpad program provides tools for developers to easily create and port apps across the webOS ecosystem.
Business Implications:
This shift represents a fundamental change in LG’s business model. Instead of relying solely on selling hardware units, the company can generate ongoing revenue from:
Licensing Fees from other manufacturers.
Shared Advertising Revenue from the platform.
Transaction Shares from app purchases and subscriptions.
Data Insights from a vast, connected user base (handled with privacy safeguards).
Industry Perspective: “If successful, LG could emulate the platform success of companies like Roku or even Google’s Android TV,” notes a digital media analyst. “It reduces their vulnerability to the cyclical and competitive hardware market and builds a more sustainable, software-driven future. The key challenge will be scaling the platform fast enough to compete with tech giants like Google, Amazon, and Samsung’s Tizen.”