As a strategic partner, the company will get early access to webOS developments and features. Such a move may help LG bring its latest software features to TVs of various retail brands in India on priority, with Videotex being liable to test and market the features to retail brands.
An ODM is involved in the design process of a product and has its own research and design facilities. This gives manufacturers such as Videotex the ability to attract a larger number of retail brands in comparison to original equipment manufacturers (OEMs), which can only assemble or manufacture a product once all licences and designs are offered to them by a contracting company.
ODMs typically also invest larger amounts in acquiring software licences and establishing development facilities than OEMs.
In this case, for instance, Videotex now holds a licence from LG to use its webOS TV platform. In a statement, the company said that has brands such as BPL, Hyundai and Daiwa using LG’s webOS in their TVs. The company said that it has already manufactured over 500,000 TVs based on LG’s platform since acquiring the latter’s licence last year.
To be sure, this is not the first instance of India’s contract manufacturers signing deals to rival TV manufacturers from China. In September, Dixon signed a deal with Google to license its Android TV platform for use in TVs for retail brands. Super Plastronics had signed a similar deal with Google in 2020.
Such deals are seen as key for contract manufacturers to develop from OEMs to ODMs, which in turn give them the ability to cater to a larger number of brands, device types and price categories in the long run.
