[Comprehensive Report 2] LGU+ Partners with Disney+ "Around 20,000 KRW per Month... Offering Convenience Different from Open-Type Set-Top Boxes"

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[Asia Economy Reporter Joesulgina] "We are the only exclusive partner in the country. We will provide convenience on a completely different level from what can be experienced on other set-top boxes or smart TVs."

LG Uplus is accelerating its domestic living room market strategy by partnering with the global OTT giant Disney+ (Disney Plus), which is about to enter the Korean market. LG Uplus, the first in Korea to sign an exclusive IPTV partnership contract with Disney+, has introduced a bundled plan that allows customers to use its IPTV, internet, and Disney+ together for around 20,000 KRW per month.

In particular, as the exclusive IPTV and mobile partner, LG Uplus aims to provide "convenience on a different level" and a "differentiated customer experience," unlike competitors who have recently adopted open set-top boxes to secure Disney+ content accessibility.

However, LG Uplus avoided giving an official answer regarding the duration of the exclusive IPTV partnership, citing "confidentiality between the two companies." It also declined to comment on plans to launch IPTV and mobile plans that would allow simultaneous use of Netflix and Disney+.

On the morning of the 11th, a day before Disney+ launches its service in the Korean market, LG Uplus held a press conference announcing that it will provide Disney+ through its IPTV service, U+tv. Jung Suheon, Head of LG Uplus Consumer Division, said, "We expect synergy with the content owned by Disney," adding, "We will strive to provide a differentiated customer experience and increase the number of 'LG Uplus true fans.'"

Disney+ offers content appealing to all age groups, from children to seniors, including Avengers, Star Wars, and National Geographic, making it a strong competitor to the OTT powerhouse Netflix. As of Q3, it has 118.1 million global subscribers. In Korea, LG Uplus holds an exclusive partnership for IPTV, while for mobile, it has partnerships with LG Uplus and KT, with services officially starting on the 12th.

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First, LG Uplus introduced a bundled plan combining IPTV and OTT services to coincide with the Disney+ partnership. The newly launched IPTV-only plan, "Premium Disney+," is priced at 24,600 KRW per month (3-year contract, internet bundle basis, VAT included) and allows unlimited enjoyment of U+tv, internet, and Disney+ content. Choi Chang-guk, General Manager of LG Uplus Home Media Business Group, emphasized, "We are the only exclusive IPTV partner in Korea," adding, "We can provide differentiated services targeting key demographics interested in OTT, such as one- or two-person households and kids-mom households."

LG Uplus revamped the user interface (UI) to enable its customers to conveniently enjoy Disney+ on IPTV and developed a dedicated remote control. Disney+ is provided via automatic updates to the U+tv set-top box, and users can access it with a one-stop shortcut button on the remote control. The company added that this was possible because it holds the highest proportion of Android OS-based set-top boxes among domestic IPTV operators.

Jung said, "Through LG Uplus, you can easily watch Disney Originals, Marvel, Star Wars, and other content with a sense of presence," adding, "We provide convenience on a completely different level from what can be experienced on other set-top boxes or smart TVs available in the market."

Besides IPTV, LG Uplus will also launch five types of 'Disney+ Premium Pack' plans for mobile. Subscribers to 5G plans costing 95,000 KRW or more and LTE plans in the 100,000 KRW range will receive Disney+ subscriptions monthly. The plans eligible for the Premium Pack include 5G Premier Regular, 5G Premier Plus, 5G Premier Super, 5G Signature, and LTE Premier Plus.

Additionally, to commemorate the partnership with Disney+, LG Uplus will run a promotion offering three months of subscription to new customers of IPTV, internet, and mobile services.

LG Uplus held a press briefing on the morning of the 11th, one day before the launch of Disney+ in the Korean market, and announced that it will offer Disney+ through its IPTV service, U+tv. Photo by online press briefing screen capture.

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LG Uplus, which enjoyed subscriber growth by partnering with Netflix for the first time in Korea in 2018, is expecting synergy with Disney+ this time as well. Particularly, it is significant that LG Uplus secured 'OTT service superiority' by not only partnering in mobile but also holding exclusive IPTV service rights in Korea.

According to Nielsen data, the number of major OTT users in Korea grew approximately 82% from 35.97 million accounts in Q1 2019 to 65.47 million accounts in Q3 this year. LG Uplus's own research showed that customers using OTT services through U+tv doubled from January last year to July this year.

LG Uplus expects that "because we can offer differentiated rates and programs compared to competitors, it will fundamentally have a positive impact on the growth of mobile and IPTV." Its subsidiary LG HelloVision also offers two products combining cable TV service HelloTV and Disney+: New Premium Disney+ (22,400 KRW/month) and New Basic Disney+ (21,300 KRW/month).

On this day, LG Uplus did not disclose specific subscriber targets or figures expected from the Disney+ partnership. Jung said, "The most important thing is whether we can provide a differentiated customer experience that meets diverse customer needs." He added, "The partnership with Disney is a complementary asset," and said, "If customers want it, why not? With a 'Why not' spirit, we will continuously strive to meet customer demands."

However, some analysts believe the exclusive partnership benefits LG Uplus can enjoy may not be significant. Disney+ itself has sufficient price competitiveness (9,900 KRW/month), and KT, the number one paid broadcasting operator in Korea, is expected to expand services from mobile partnerships to IPTV in the future. Moreover, competitors have secured Disney+ content accessibility through open set-top boxes such as Apple TV 4K (SK Telecom) and Giga Genie A (KT), which is a negative factor for LG Uplus.

Regarding questions about the duration of the exclusive IPTV partnership, Jung avoided a direct answer, citing "confidentiality between the two companies." On competitors' open set-top box countermeasures, he said, "This is not something we can proceed with alone; we will collaborate with Disney," but expressed confidence, stating, "The convenience is much better, so I think the convenience and level are different from theirs." He explained that LG Uplus is the only exclusive partner in Korea that has conducted linked development testing with Disney.

The plan to launch IPTV and mobile plans allowing LG Uplus subscribers to use Netflix and Disney+ simultaneously remains uncertain. This is one of the most requested features among domestic OTT users who subscribe to multiple OTT services. Choi said, "This is not a decision we can make alone; it is linked to the business strategies of Disney and Netflix," adding, "It is difficult to answer."

Meanwhile, on the same day, KT announced it will launch the 'Disney+ Choice' plan on the 12th, which allows use of Disney+ with its unlimited 5G data plans. Subscribers to 5G plans such as Super Plan Premium Choice (130,000 KRW), Super Plan Special Choice (110,000 KRW), or Super Plan Basic Choice (90,000 KRW) can use Disney+ without additional charges.

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