[By Kim Yoo-chul, KoreaTimes]
New CEO Koo bets heavily in efforts to regain industrial supremacy
A pair of special 3D glasses is still required but they are now lighter, less bulky and cheaper. They look better.
Technically, LG Electronics say, the image seen through them has diminished flickering, cross-talk and image overlapping, which comes with a wider viewing angle.
It was just months ago that top-tier television makers including LG Electronics, Samsung Electronics and Sony rolled out 3D-ready TVs, with great expectations.
Now LG is pushing ahead with film patterned retarder (FPR) technology or Cinema 3D, which it claims gives the viewers an experience tantamount to being in a movie theater.
LG’s FPR features an ordinary-looking pair of polarized glasses that are “extremely lightweight’’ and a lot more comfortable than Samsung’s shutter-glasses (SG), which costs at least $150. LG’s glasses cost around $15.
Samsung’s SG-embedded 3D TVs have the edge in providing more vivid and clearer images but top LG executives say FPR 3D televisions cause less eye-strain, in addition to a greater angle of vision.
“LG has no doubts over buoyant sales of our FPR 3D televisions as those sets are cheaper and can offer full high-definition (HD) viewing to consumers,’’ said LG spokesman Oh Sea-chun.
LG plans to sell 10 million FPR 3D TVs this year. LG’s total flat-screen TV sales target in 2011 is 40 million.
LG believes it is moving on the right track to retake its technology leadership in the television industry after CEO and Koo Bon-joon of the owner family declared LG’s return to hardware-driven priorities.
Under Koo, LG is changing its course drastically to boost its profile in the domestic and overseas market in real terms, giving up its previous globalization plan centering around the hiring of foreign executives.
The 3D televisions are the next big thing for TV makers as they struggle with razor-thin margins and growing price competition in the commodity-type TV market. This area is seen to offer fatter margins.
The global 3D TV market is expected to grow more than five-fold to 17 million sets this year from around 3 million last year, a prediction LG says is “conservative.”
“Although the 3D TV market is still nascent ― an estimated 2 percent share of the flat-screen market last year ― we expect high-tech units to reach more than 40 percent of all flat-screen sales by 2014,’’ said an LG official.
LG, as well as Samsung, is unexpectedly busy forming alliances with well-known content providers to strengthen its position in what it sees a market that is becoming lucrative.
LG Cinema 3D includes a 3D sound home theater system, a network Blu-ray player and enough gadgetry to enable the use of the Internet and home networking.
LG has begun offering free software upgrade services to offer more premium content from streaming-media providers, LG said in a press release.
Game changer
LG is ready to expand the emerging televisions built with FPR technology into the minds of general customers as it confirms its plan to release entry-level FPR 3D TVs from April in the local market.
“LG’s FPR 3D lineup is with entry-, middle-, and premium-level TVs. We are currently selling middle-level sets, however, LG will also release premium-level sets in the latter half, which is good for 3D TV buyers,’’ said a top-ranking LG executive, who is directly involved with the matter.
Oh said affordable prices and less-expensive glasses are key merits to further lift its FPR 3D TVs and added it is planning to run massive marketing campaigns for awareness.
LG officials told The Korea Times that it has stopped producing SG-based 42-inch, 47-inch, and 55-inch 3D televisions consistent with bold strategies for FPR 3Ds.
“LG hopes its 3D TV will become the `game changer,’ and initial responses are quite impressive. What LG needs is bigger budgets for marketing and content,’’ said a senior analyst at a Europe-based investment bank based in Seoul.
LG’s 3D initiative comes after LG didn’t fare as well as expected for LCD TVs. During the fourth quarter of last year, LG’s TV market share dropped to 5.5 percent as it was hesitant on whether to adopt SG or FPR technology, according to market research firms.
The Cinema 3D TV is the result of the collaboration between LG Group’s key affiliates.
The group’s display-making unit LG Display has developed FPR panels, while LG Chem supplies films. LG Innotek provides LEDs, while LG Electronics sells the finished sets.
“LG is no longer a late comer. Some point out our harmony- and conservative-driven corporate culture as negative factors to distract faster execution. But that’s the old story,’’ said the unnamed LG executive.
LG brought in group Chairman Koo Bon-moo’s younger brother, Bon-joon in order to rejuvenate LG Electronics. Bon-joon is emphasizing the spread of “first-place DNA’’ to become the industry’s No. 1.
With the motto of “fast, strong and smart,’’ the new LG CEO hired technicians and field-driven experts into top positions for early breakthroughs, according to LG officials.
“It takes time to change the direction of an aircraft carrier. But we will do it,’’ CEO Koo said.
LG plans to reap 59 trillion won in total revenue this year, while it’s set to invest a record 4.8 trillion won for R&D and facilities, LG said.
HP, Sony interests
LG’s FPR tech is receiving more attention from bigger technology firms, which analysts say is “quite inspiring,’’ raising chances for the success of Cinema 3D TVs and FPR technology.
A recent survey of 25 brokerages has shown that LG saw good reviews in terms of the realization of 3D images and price, while Samsung was credited with viewing quality.
Sony and the world’s biggest PC maker Hewlett-Packard (HP) are negotiating with LG Display for FPR 3D screens on their upcoming 3D notebooks.
LG Electronics CEO Koo and HP CEO Leo Apotheker discussed their strategies during Leo’s recent visit to Korea ― their meeting was seen to be highlighting and further boosting the strength of FPRs.
LG Display spokesman Sohn Young-jun hopes that HP will use its screens for new 3D notebooks. Sohn admits talks were also underway with Sony to supply FPR panels.
An HP representative declined to confirm the Koo-Lee meeting, while LG Electronics spokesman Yoon Won-il also didn’t confirm it.
Hong Ji-eun, a spokeswoman for Sony Korea, said it’s not company policy to comment on such issues.
“But the one clear thing is that CEOs of LG’s key units are forming a united front to lift the 3D FPR technology. If it breaks the walls, then LG’s Cinema 3D TVs will see a turning point outside the peninsula,’’ said Park Seung-min, an analyst at Kyobo Securities.
LG Electronics owns 37 percent of LG Display’s shares. Officials say the partnership between LG Electronics and LG Display is “stronger than ever’’ as the CEOs of the affiliates have reached a broad consensus to spike TV sales and panel awareness.
LG Display CEO Kwon Young-soo is considered as the top lieutenant of Bon-joon. Bon-joon was the formerly CEO at LG Philips LCD, which is now LG Display.
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