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LG U+ to spend 2.6 trillion won on cable TV, 5G content

Nov 19,2019
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Ha Hyun-hwoi
LG U+ announced Monday it will invest 2.6 trillion won ($2.23 billion) over the next five years into creating 5G-based media content and stabilizing its cable TV service.

The proposed amount is roughly double the carrier’s investment in media content and platform development over the last five years, the company said. The announcement comes ahead of the carrier’s acquisition of cable TV operator CJ Hello.

“As the cable TV industry faces sluggish growth, upgrading networks and developing new content and services have been difficult,” said LG U+ CEO Ha Hyun-hwoi during a regular company management meeting held Monday. “We should develop technologies to offer innovative content and services to cable TV subscribers after we complete the acquisition of CJ Hello.”

The carrier said it is preparing to upgrade the competitiveness of the cable TV platform after acquisition, such as by enhancing the picture quality of TV channels and jointly developing new content.

The deal is expected to be finalized by the end of this year.

“We will complete the review of LG U+’s acquisition of CJ Hello as soon as possible, hopefully within this year,” said Choi Ki-young, minister of science and ICT, during his first press briefing after his inauguration in Yeouido, western Seoul, on Monday.

The local antitrust agency, the Fair Trade Commission, already gave conditional approval for the deal earlier this month.

The company will also expand its 5G-dedicated content, including augmented reality (AR) and virtual reality (VR). The carrier said it expects roughly 10 million people to subscribe to 5G by next year, opening up a huge market.

While it already offers 19,000 pieces of content that work on 5G, it plans to focus on developing VR concert videos, gaming videos and web cartoons, as well as AR-applied education and home workout videos.

Some of the 5G content will also be offered on both cable TV and IPTV channels operated by LG U+ from next year.

In the first half of the year, the carrier said it will open up its second AR production studio. Setting up the studio will be separate from the 2.6 trillion won investment.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]