Seoul, South Korea -- LG's WebOS has evolved from a smart TV operating system into a versatile platform, driving growth across multiple industries. Matthew Durgin, Vice President of Content and Services at LG Electronics, recently discussed the platform's development and future strategies, underscoring its role in the rapidly growing connected TV and digital advertising markets.

Since its debut in 2014, WebOS has been a significant component of LG's smart TV portfolio. Originally created to replace LG's existing OS, WebOS became known for its user-friendly interface and innovative features. By 2015, LG introduced LG Channels, a free, ad-supported TV service that helped accelerate WebOS's adoption in Korea and beyond. The platform expanded to third-party CTV manufacturers in 2020, becoming a licensing business known as the WebOS Club.

Matthew Durgin highlighted the platform's milestones: "In 2023, we began expanding WebOS beyond TVs into automobiles and smart monitors. We've now achieved an install base of 220 million devices globally. This forms the foundation for our growing platform business."

The connected TV (CTV) advertising market is on an upward trajectory and is projected to grow from $21 billion in 2021 to $65 billion by 2027. Durgin emphasized the potential of this market: "As we move into streaming, we're witnessing a transformation in advertising. WebOS's role is to capitalize on this trend, providing a seamless and dynamic platform for advertisers to reach audiences globally."

LG expects WebOS to play a vital role in this growth, with plans to exceed market expectations. In fact, Durgin shared, "LG's platform business is forecast to generate over $800 million in revenue this year, four times its 2022 performance".

Durgin outlined a clear path for WebOS's future: "Our strategy focuses on three key areas—expanding the install base, diversifying the business model, and strengthening our platform capabilities."

LG is partnering with TV and original equipment manufacturers (OEMs) worldwide to expand its install base. This includes promoting WebOS on devices beyond smart TVs, such as automobiles and smart monitors.

Diversification is another critical focus. LG is developing new revenue streams through gaming, commerce, and transactional video-on-demand (TVOD) services. "We're creating a WebOS gaming ecosystem and exploring transactional video-on-demand opportunities globally. This will enhance the user experience and drive new business models," Durgin explained.

At the heart of WebOS's growth is LG's investment in advertising technologies. Since acquiring the ad-tech company Alphonso in 2021, LG has been refining its capabilities to offer targeted ads and data-driven insights for advertisers. "By leveraging artificial intelligence, we're optimizing advertising campaigns, allowing us to better target specific audiences and maximize reach," Durgin said.

LG plans to invest nearly $1 billion by 2027 to enhance the competitiveness of WebOS, including partnerships with major content providers like Disney, Universal, and Sony.

LG's WebOS has come a long way since its launch, and according to Durgin, it's just the beginning. "Our platform is evolving to meet the demands of a rapidly changing digital landscape. WebOS will continue to support LG's transformation into a media and entertainment platform company," he concluded.

As LG focuses on scaling the platform, diversifying revenue models, and strengthening its capabilities, WebOS is poised to be a major player in the future of connected TV and digital advertising.