LG’s record Q1 reveals interesting insights into future business models of the two Korean electronics giants. For LG, the growth catalysts currently are its B2B business, hardware subscription services, and WebOS.
LG Electronics expects a 7.8 percent year-on-year sales growth for the January-March period, reaching $15.5 billion. This represents record sales for the Samsung competitor. The driver behind these numbers is steady growth in its core businesses, particularly in B2B solutions, subscriptions, WebOS-based services, and direct-to-consumer business.
Subscription services accounting for 20% of total sales
The digital signage industry in Europe and North America can breathe a sigh of relief for now, as LG’s subscription services are currently offered exclusively in East Asia, with plans to expand to Southeast Asia and India this year. However, Hardware-as-a-Service – primarily focused on household appliances so far – is the standout growth story for LG Electronics. Subscription offers for premium products and WebOS have been particularly successful.
LG Electronics is not the only hardware provider offering high-priced consumer and B2B products on a monthly subscription basis, but it has been the most successful so far. Asian customers, in particular, have shown strong interest in expensive OLED displays and household appliances. But Hardware-as-a-Service and WebOS-based services are also in high demand in the B2B sector.
Samsung relies on VXT for subscriptions
Its cross-city rival, Samsung, is also betting on a variety of subscription services. The most relevant in the digital signage market is the CMS and RDM platform, VXT. While going direct in some regions, Samsung and LG primarily offer their digital signage services and subscriptions through partners in Europe.
Trend for Managed Signage
Demand for managed signage – subscription offers for hardware, operation, and services – is also growing in the digital signage market. This trend will also be the central topic at the upcoming DSS Europe 2025 conference and the invidis yearbook 2025.
