‘Let’s make LG fans’ Gu Kwang-mo acquires a US data analysis company… “Strengthening the competitiveness of TV business”

Input 2021.01.07 10:00

LG Electronics invested 80 million dollars (about 87 billion won) to secure more than 50% of Alfonso, a data analysis company headquartered in Silicon Valley, USA. It is based on the judgment that if Alfonso’s technology is applied, the TV business such as services and contents can be strengthened. At the beginning of this month, LG Group Chairman Kwang-mo Koo said, “Let’s complete customer impressions and make LG fans,” and it will be interpreted as an extension of the section emphasizing’customer understanding and empathy.’

LG Electronics (066570)Announced on the 7th that it has invested $80 million in Alfonso and secured more than 50% of the stake.

Alfonso is a TV advertisement and content data analysis startup established in 2012. It owns an independently developed artificial intelligence (AI) video analysis solution and secures TV viewing data of 15 million households in North America. It is continuously collaborating with global TV manufacturers such as LG Electronics, Sharp, Toshiba, Hisense, and Skyworth, as well as TV solution technology companies.

Recently, the demand for enjoying various contents by connecting TV to the Internet is constantly increasing. As of last year, the proportion of smart TVs among TVs shipped to the world was 83%. LG’s TV shipments last year were close to 30 million units, of which smart TVs accounted for more than 90%.

LG Electronics believes that by utilizing Alfonso’s advertising and content analysis capabilities, consumers who purchase and watch LG TV will be able to provide a variety of customized services and contents through free broadcasting service LG channels. This is in line with the “customer impression” that Chairman Kwang-mo Koo emphasized in his New Year’s speech earlier this year. Chairman Koo emphasized, “Now is the time to understand customers more closely, find aspirations in their hearts, and make this a reality to increase customer satisfaction.”

In particular, since this segmented analysis of customer preferences and providing customized services can ultimately lead to trend-leading, LG Electronics reported that it is possible to generate synergy in all business areas beyond TV as well as revenue generation of simple contents. have.

With this acquisition, LG Electronics plans to enhance its TV business portfolio, differentiate its service and content competitiveness, and secure additional growth engines from intensifying competition, led by Chinese companies.

Hyung-se Park, head of LG Electronics’ HE (home entertainment) business division, said, “We will continue to expand the service area based on customer value while upgrading our business structure based on digital transformation.”