Is LG Bribing YouTubers?? - pt.1
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- Опубліковано 14 чер 2021
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I honestly thought that LG didn't want the new monitor compared to the old one cause the old one would look BETTER than the new one. But to do it because you don't want to hurt current sales is properly blowing my mind...
Some exec: Gosh I don’t want to lower the price of last years model, making too much money on it as is
me too. but if you think about it actually makers sense this way. they don't want early Reviewers to do that so they can sell the old one till the new ones come out and people don't wait for it. So sales for the old one only go down when the new ones actually come out.
still wired thou.
One reason I've been told for the lack of supply is that the logistics just can't keep up with demand. So maybe LG have warehouses full of their previous generation monitors just waiting to be delivered to wholesalers/retailers. Yeah, I don't think that's really the case here, but it's not like logistics problems haven't caused supply issues in the past.
@@rodh1404 logistick problems where more a thing early in the pandemic. now the manufacturing is more of the Bottleneck.
A computer company went bankrupt because the new model hurt current sales.
See osborne effect:
en.wikipedia.org/wiki/Osborne_effect
LG is probably not going to go under, but they don't want to end up stuck with tons of old stock.
Jokes on you Linus, I run my two braincells in SLI.
Goddammit, I was about the make the same joke lol
533 likes later.
@@gmdking hm
3dfx SLI or Nvidia SLI.
@@rynobehnke8289 Both😎
This is what's called the Osborne effect. Basically a computer company unknowingly killed itself when it released a demo of an improved version of it first pc which was smashing sales. The sales of the first pc dried up before production of the second had even commenced effectively destroying the company.
The reason why LG separates they corporate structure like that is so that the family that owns LG can control the company while owning fewer shares. There is a convoluted corporate structure for that purpose.
Personally, I thought it had a lot to do with tax minimization. By structuring the business into many different "independent" units, they might be able to funnel the majority of their profits into a low tax country. A similar principle applies with 'Hollywood accounting", although that's more about denying movie stakeholders their fair share of movie profits.
More to do with tax's
I'd say it is two fold.
1, to allow autonomy. Since different product categories and different markets require different things and such, having autonomy can allow one division to do things that would not be good for another. For example, LG Display selling Apple displays while LG mobile competes directly with Apple.
Samsung has the same structure.
2, Possibly for Tax reasons but that is actually unlikely as depending on where the Company is Based, Tax Evasion is just too costly to attempt and South Korea has a very strict tax law, especially for corporate tax.
3, Collaboration. When you have a ton of divisions you can develop isolated talent pools and workforces independent of one another. Then you can use all of that specialist talent and have the whole company work on one thing, leveraging the talents and strengths of each division while at the same time countering weaknesses by leveraging another divisions strength in that area.
A lot of companies will do it for tax purposes as well. Several well known companies have been known to have smaller businesses that over charge the main company for the services reducing their total profit amount for the largest company allowing them to pay less in total taxes due to brackets being a thing. This is at least a case in the USA
Owning fewer shares is not a good thing. Its dividing liability and income distribution for the most part.
I like how ltt gives you an honest insight into the business. It is refreshing and appreciated! Thanks Linus!
Funny for lienus to say this after shilling so blatantly hard for Nvidia just a couple days ago lmao.
Literally had GN steve call him on the live stream to call him out on his lies lmao.
@@crisnmaryfam7344 did you even watch the video?
@@crisnmaryfam7344 I'm guessing you also didn't see his video on the last time Hardware Unboxed's channel has been messed with.
@@crisnmaryfam7344 oh man you guys still here?
@@crisnmaryfam7344 ltt was bought out by NVIDIA years ago, where have you been?
On the other side Apple, comparing their new products exclusively to their older ones.
but apple just says it's "25% faster" and then everyone is just like "oh yea that makes total sense" then again that's pretty much every hardware manufacturer nowadays
At least they are comparing Apples to Apples
@@mvnd5652 Yeah, except their M1 claims weren't lies. They really did make one of the fastest chips
That is why they are the most successful tech. brand they try to outdo themselves not the competition which in turn outdoes the competition.
@@YourLocalCafe In terms of performance they don't really outdo the competition, but they do in sales.
I'd love to see a series where Linus talked about the business side of ltt. It's really fascinating when he talks about this stuff.
The worst part is: there was a company that went under because of this exact reason. They couldnt get the new computer out because they ran out of money due to the old one not selling enough because of a review
The Osborne Executive killed the company.
What's the company's name?
@@hanayuna4 Osborne
@@Pokemc0831 What’s the name of the product that killed them?
@@Jack-cq9pv Simply, competition and various manufacturing, marketing and advertisement blunders caused the product to “fail” and pack out of the market. For instance, in 1983, just before Osborne 1 was discontinued, Adam Osborne boasted about an upcoming product months before it could be released, killing demand for the company’s existing products.
13:30 no you see they're re-inventing the word government, one less letter is more cost efficient in storage, it's the FUUUTUUURE
To the moon!
You mean the Futre, dont you?
Man big companies like treating hardware unboxed like trash for some reason
I doubt they would've been the only ones LG tried it on.
In the case of Asrock, the company reacted badly to their (trash) Z490 boards getting reviewed negatively and did the same with Gamer's Nexus.
In the case of Nvidia and LG it was from people that they don't usually deal with. Nvidia's email came from high up and LG had a different team doing it.
Probably because hardware unboxed is exposing it instead of just going with the flow
that's cause hardare unboxxed is garbage.
Its because he's a trash tier youtuber
@@jamespcnut wallah. that guy is nothing but paid reviews with no insight into the product.
I think the real reason for getting rid of annotations was because some UA-camrs filled the screen with big ones that were invisible, so that when you clicked on the screen to pause, you would subscribe, go to a website, etc.
There's always been the theory that big camera/tech manufacturers have the next decade of products ready, and they're just releasing "improvements" slowly to milk profits. I love that lg have pretty much exposed themselves now trying to pull off something similar.
It only works when you are on the cutting edge, this is what Intel had done for consumer grade CPUs until AMD began becoming competitive.
@@MonlopoMAN yeah they weren't ready and AMD suprised them that they caught pants their pants off. .
From memory I remember reading somewhere from Google's own help page that Annotations were flash based.
Which would make sense since for a long time UA-cam itself was flash based. But since flash isn't available on mobile devices flash content won't work, meaning that prior to UA-cam's transition to HTML5 the Mobile Versions of UA-cam were fundamentally different.
Hence no annotations because no flash.
*correction:
flash wasn't available on APPLE devices
@@chaparmusic It isn't on Android either. It was in the early 2010s but flash mobile died on September 10th, 2013. It may not seem that long ago, but that final release was for Android 4.0
But they'd still have all the data and metadata related to content, timing, and location of the annotations. They could've developed a new system that was backwards compatible, but they probably chose not to for business reasons.
Jarrod's Tech is legit. Glad he got a shout-out. Bought my laptop based on one of his reviews a few years ago and I'm glad I did.
The fact that they mispelled "government" in the title "Intelligent Government" is hilarious to me.
They also misspelled “unintelligent”
I was thinking this would be something like Intel Rocket lake, when any comparison to comet lake would show that the prior generation was better in most respects
What are these "most respects", they have 2 more cores in 10th gen. It'd be a big difference if that was from 4 to 6 but not 8 to 10.
The mass consumer base doesn't use a lot of cores.
People who do work with a lot of cores use workstation setups, or might even have a server to allocate resources from.
(They can also game on those)
My honour : Never abide to corruption
My wallet : I said we're corrupt today
The other youtubers watching is a great idea on their part. It supports LTT which can give valuable shout outs and the little nuggets of advice about handling company relations and handling upload schedules and documents etc is unbelievably helpful.
Hell yeah glad Linus covers hardware unboxed so much like this now
With my limited knowledge on economics, I think the word for describing LG Display is a subsidiary of LG Electronics. Love that Linus is explaining the business side of things!
The LG brouhaha seems to be a overly cautious and twisted attempt at avoiding a precedent of how a computer company(cant recall the name) touted their 2nd gen product's improvements before the 1st gen one even got to market, thus no one bought the 1st gen product in anticipation of the other, which caused the collapse of the company.
If they were trying to protect the older display's sales, they should've scheduled the release of the newer display better.
It was called Osborne a very very old now defunct computer company. Its called Osborne Effect.
LG sponsored this video with 30 new OLEDs for us.
And Panasonic invented the OLED cooling stuff
My old lg monitor still going strong, I honestly think it’s like 12 years old
What do you dishonestly think?
@@mavfan1 what do you mean by “dishonestly think?” I’m not sure I understand what you’re asking.
@@crt5866 *you're
Why did you use the word "honestly"? Did you think we would think you're lying if you left it out?
@@waldolemmer lol no, I just don’t know how old it is cuz I got it from someone else for free and they had had it for a long time.
Also how I did I not get that joke 🤦🏻😂
This chain is pure autism. If I wanted to be on /g/, I'd go there.
Well in the case of Hardware Unboxed, subsequent emails from LG, when pressed for reasons By Tim, said that they felt that the new model was NOT as good as the previous (did not perform as well as expected). Hence the wish to avoid comparisons with the previous LG model ....which seems much worse than "the new one is too good".
Midway through - I have to admit I am suddenly overcome with this urge to know more about that vlog about duct taping network switches to the wall. Very interesting.
And what the impact to thermals would be...colab with GN ? :)
Really nice of you to do shout outs to other youtubers
One major reason to do the spin-off is in order to have different sections of your business "pay" each other for products and services, LG can even lose money to LG.
This means that can evade taxes by having LG in Luxembourg pay LG in Ireland for example, and make a loss so they no taxes either
Bingo.
true, but that’s not the root cause of why entities like LG CNS exist. that’s a byproduct or side effect. it’s much more insidious, stemming from activist communist politics and propaganda of the previous 2 generations making their way into legislation. you don’t want to build a business in s. korea because of these things. it’s ludicrous to have a big company, other than an office or liaison, in s. korea.
@@daisycutter2978 lol wot
I know of a company that split like that to get around conflict of interest laws. They made one company that did IT consulting for school districts, one that was an ISP/Telco, and one that installed alarms, networks and phone systems. The consulting firm recommended specific products that the other two companies sold. The American PPP loans ended up being an added bonus for being different companies.
10:40 "where you duct tape network switches to a wall": Review on adhesive mounting of network infrastructure when?
5:30 I'm curious if you've ever been part of a review where there was supposed to be an embargo, but it wasn't communicated or included in the agreement, causing issues.
"Don't let everyone know that this one is so much better than the last one"
3:17 There can be a few reasons; one can be compartmentalised insulation of liability (although that''s more common in construction, it's certainly prevalent otherwise), another can be tax advantages depending on the jurisdiction (it's free tax-wise to pass profits up a chain of corporations in Canada, while the USA taxes each transfer, for example), another reason can be control-related, although I know less about this because it's more local context specific
Idk how it works in US but in my country splitting company into smaller ones, can be simply cheaper, taxes wise, workers costs etc. Also there is additonal bueaucracy connected to whats company main focus, what it does, is it factory etc.
LG CNS isn't a "separate company" it's called a subsidiary...
Companies can be a subsidiary of a larger one
Yes watch the video
It's not a subsidiary. It's a "separate company". It's like how Oppo, Oneplus, Vivo and Realme are separate companies, but they're all subsidiaries of BBK electronics. I am pretty sure there's a difference between the two.
@@trs5127 No, it's a subsidiary by definition . A 'separate company' is not governed by a parent and requires independent tax filings.
10:40 PLEASE SHOW LUKE duck taping network switches to a Wall !!!!!!!!!!!!
Splitting companies is like network segmentation, It keeps things cleaner, simpler to maintain, and secure
It's probably an Osborne effect thing? They realized they would have supply chain issues and that their great new monitor would be constantly out of stock, and worried that it would hurt sales of older models that were actually still in stock and could actually be sold. I mean, with Nvidia, few people who wanted a 3080GTX bought a 2080GTX instead when there were supply issues. Nvidia probably would have made more money if they hadn't released the 3000 series when they did.
Not sure how true that is with the current GPU shortage.
So Linus Media group is
1.Linus Tech Tips
2.Techlinked
3.Techquickie
4.short circuit
5.mac address
6.Lmg clips
7.Carpool critics
8.Channel super fun
Combined! So is this like LG?
No, there is no legal or physical separation. Just different endeavors.
@@NathanHedglin for lg or for lmg
15:08 I got Umbridge vibes lol.
What was the current mode and which was the previous model? I might be interested in the previous model
I thought LG was Linus Group for a second there... totally different video than I thought :)
Heeey I was waiting for this :D
companys split like that usually for tax reasons. being able to charge your own company for things your company is providing is a way to create tax loops
Makes it easier to handle the rebate system as well. You buy product for set price, you sepp product whole offering an undisclosed sales bonus to your company.
LG was indeed rather stupid i trying to control reviews.
That being said, Linus' puzzlement at the supposition that companies don't want in-stock products compared to newer, potentially better products, implies that he never heard of Adam Osborne, who bankrupted himself by pre-announcing a new line of "luggable" computers, which made buyers cancel pending orders to wait for the new models, resulting in Osborne dealers stuck with tons of un-sellable units, and no income that could finance the production of the new units..
I believe this marketing disastrous error is referenced in university materials on marketing mistakes.
This analogy makes no sense.
@@leeschumacher8285 Well, from what I heard, Linus was asking why LG would not want to compare their new product to their own older product.
Adam Osborne did just that, he pre-announced his new model of more capable computers, which caused his considerable customer base to cancel orders for the then current model to wait for the new model.
As a result, vendors (one of whom was a friend of mine) were left with stock they couldn't sell, and Osborne couldn't generate the income to get the new models to market on time.
Before he finally did, Kaypro hit with with a model, with specs like Osborne's new model.
Customers switched, and so Osborne went bankrupt.
So that is why a company might not want to compare new models with models they are still selling.
Still, LG made a bonehead move, trying to bribe tailored reviews, rather than having their ad/marketing dept. just buy advertising that suited their goals.
@@brianbatie6650 I'm pretty sure marketing teams have considered bribes and being suspiciously nice and/or mean as tools in the belt for a few decades... Illegal or not, corporations as big as lg pull shady crap _all the time._
@@ashkebora7262 100% agree.
The stupid part was trying to bribe a reviewer who just recently outed Nvidia for similar BS. Apparently they thought Hardware Unboxed wouldn't dare out another big company.
Searched for this comment. This is actually named after the guy. It's called the Osborne Effect.
I read this title as is LTT bribing UA-camrs and got really excited for that piece of sarcasm
Well, most Koreans agree that LG needs better marketing and this just adds more reason to think that way. LG took years to beat samsung on house electronics in Korea even though they had better products due to marketing failures.
I like these behind the scenes type videos. I think it'd be interesting to see you chat with Cory from Aquarium Coop about UA-cam. It'd be an interesting compare/contrast. And/or hear you two talk about business generally.
Linus talking about UA-cam annotations as if they're ancient history makes me feel old.
Also LGCNS still has that typo on their about page in multiple places.
Isnt there a story about a pc company that actually went bust because everyone cancelled their orders bcs they wanted to wait for the new one
Osborne effect.
My father, who is a CFO for a company, says they have a lot of business because if 1 business of the main business goes bankrupt, the main business is safe. So maybe thats a little reason (not all) that LG had multiple companies
Also Tax reasons in some cases. Just look up IKEA they basically invented Tax evasion
18:24 this is quite literally the OPPOSITE mindset AMD has. Lmao.. they have bomb processors and they just kept/keep dropping bombs
LG's reasoning is obviously insidious, but it does kind of make sense. The old monitor might be out of stock right now, but maybe the supply situation looks a lot better than for the new one.
It's the same mechanism companies use with halo products. They make the best, but unobtainable product and than advertise their lower end offerings as being really similar to the aspirational, high end product.
7:50 - Faster over drive setting that was usable? Yeah... Acer ED273
It seems that LG CNS is the information technology branche of LG. Possibly they make or at least specify the monitors while LGE does televisions.
I would have though LG has people that manage product manufacturing, so as a new monitor is coming out they stop manufacturing the old one!? WTF is LG up to?
Well, that depends on how they source their materials. It's very possible that they have excess stock of certain components that are only used by the original monitor, so it would make sense to keep manufacturing until that stock is used up.
Additionally, retooling factories can be incredibly expensive, especially if there are significant changes in the manufacturing process between models. It seems plausible to me that if an older model can still be sold for a profit, there is enough demand for both the new and the old model, and both models can be produced without creating a component supply bottleneck, it would make sense to keep producing both models.
@@havefun123for the real answer is probbaly they have thousands of the old monitor sitting in a warehouse
Honestly, it's more like a hockey game where at the end, they all pull off their jerseys and it's the same team, but also, you don't see that because none of them played because there were no hockey sticks.
So they lied to you about having a hockey game.
It's immoral, it's pointless, AND it's nonsensical!
Can you upload a videa with extra sections, edit them out before release and only if you realise you made a mistake, edit those sections back in on youtube? If so, you could do something like make a default card that says you made a mistake and show it at a later date
I don't think so. I am new to UA-cam videos, and there is one or two that I wanted to cut down or edit. However I couldn't do this without losing the original amount of views.
It's a bit of an annoyance to be honest.
"Can you imagine living inside the skull that wants to make sure that the media doesn't compare your new product to your old one for fear that it will come across too good"
I mean, new technologies are usually on pause for a very long time because ethe current (and near future) market is saturated with incompatible current technology and proposing something so good too soon would make things go bananas?
Yay, capitalistic innovation!
"Am I done making money with the last thing? No? Welp, guess the world's staying the same or worse!"
Its just a monitor though, my guess is that the monitor isn't that much, if any, better than the old one.
So a lot of reviewers would probably come to the conclusion that you might as well get the old one since it's less expensive.
If I was in the market for an LG monitor and the current one was to expensive or unavailable I would probably be more than happy with last years version.
I see 2 main reasons why you want to split company into divisions like this. One is tax issue and the second one is business model. As for the suing... it maybe just additional benefit.
Charbols: Look it up, Linus
LG CNS is a subsidary of LG, it still technically LG but divided for tax reasons.
Linus: I don't really know why these companies split themselves....
Also Linus: Linus Media Group Inc, LTT Labs Inc, Creator Warehouse Inc, Floatplane Media Inc....
I are super smort, my brain cells run together!
I'm thinking positive:
Maybe they just wanted to not tell the buyers of the old model, that they just had to wait a few weeks and theY would have gotten this thing (RTX 2080 -> RTX 3060)
That doesn't make any sense. NVidia went all out comparing the 3000s vs the 2000s so that people would upgrade.
Better comparasin would be the 1000 series to the 2000 series
I feel like this would be a reason to do reviews live streamed. Get a late embargo notice? Oops we did it in real time with a live audience when the box arrived.
2:30 I run my braincells in parallel for a higher frame rate.
Linus is Hardware Unboxed's body guard
You know what is weird, we talk about company's as if it's one entirely, yet most company's run on people, if someone else or an intern gets the task things could change.
I don't give them a 'pass' on misspelling "government" but only because it follows the word "intelligent"...
Strange that so many creators showed up, almost like at least one is only there to see if their name pops up ^^
I think this is a witch hunt against hardware unboxed, freaking companies, let them work
So basically LG understands the Osborne effect.
The LG group of companies is a huge conglomerate of subsidies and companies that are owned and operated by the group, for all intense purposes its the same company, it's like saying windows and xbox are made by different people, yes separate branches but it's still the same company, with the same people at the top. LG Electronics, LG Displays, LG Chemicals, LG Marine, they all operate in different industries with slightly different names but are all the same company.
I have changed the terms of the agreement... Pray I do not change them further!
Breaking up the companies allows them to maximize profits, subsidies and tax breaks while also minimizing risks so that a particular division can't sink the mothership
UPDATE: LG CNS changed Buzzword City and spell corrected to Government BUT if you hover over it, the previous misspelling Governmet still pops up.
Gives the impression they may not be overly detail oriented.
confirmed, still a thing.
lazy.
I bet some executive/middle manager gets a bonus based on comparitive sales metrics and doesn't want to risk distorting the measure.
Luke's Birdo has lots to say about LG bribing UA-camrs. That's one smart chirper.
Thanks for talking about this
Per 18:24, take a look at the Osborne Effect.
Yep... Got the idea, easier to flush old stocks with a new better device with only a single digit or letter change to confuse the customer.
27DC1234E vs 27DC1234F
Yeah, it's called planned obsolescence- not doing business like that is what sparked off the Great Depression of 1930's.
Manufacturers were really releasing products on a monthly basis that were expected to last multiple decades, but the problems start when everyone already has one or it could be repaired indefinitely. This leads to overproduction of stock and eventual collapse of the entire business model, so companies had to learn how to make things unrepairable, engineer in an expected lifespan, and release "new" products on a regular basis so that manufacturing anything complex could be sustainable.
The alternative that doesn't rely on deceptive practices involved raising the price to the point where making a reliable and repairable product could be sustainable but nobody wanted to pay an order of magnitude more money for the "same old" product.
TL;DR Consumer demands were the reason.
@13:40 the only way that would be better is if the label had been "Smrt Governmet"
Bring back annotations T_T
There are videos without commentary, because the commentary was ON the annotations
LG = Linus Media Group without the "media"
Lmao
Yay finally got my order in for the large CPU pillow!!!
hope it's as baller as everyone has said 😋
Any update?
@@hop-skip-ouch8798 yeah still love the thing lol, super soft and just awesome to leave on your couch or a chair , or your bed haha
Sounds like they were trying to avoid ann Osborne 2 scenario.
its like if intel demanded that you dont compare the new half assed CPU to its predecessor.
Nah it’s more like if Intel started making good chips again and didn’t want people to compare them because nobody would want the old ones
After this WAN Show LG corrected mistake on their site but the title of this link is still "...Governmet" :D
That is definitely a marketing thing where people dont buy now because they're waiting for the next release. I forget the term but it can kill a small company trying to release their 2nd gen stuff. All cash stops coming in and they cant afford to keep working on the new thing
(with the email about not comparing the gp850) I don't think pissing reviewers is a good way to avoid the Osborne effect for no reson
I thought they wouldn't want it because the monitor would turn out to be a flop in terms of advancement. Meaning it would be the same (still better than competitions) to the previous model. Then the customers would pursue the older model for one and see this as some kind of a scam that the new model is virtually the same.
I almost want to just look up the older TV/monitor and not think of the new one.
I just want to throw in that there's a scam/trick going around where someone poses as someone important sending out emails and stuff. I doubt that's the case here but it's something to keep an eye out for.
It makes sense to me not to compare to the old product if you cannot produce the new one. People will wait to buy
dang when I clicked this I thought it said LMG not LG
They are all listed on the stock exchange. This is a huge hint.
Quick comment about the youtube dropping features in the player because of the lack of mobile support.
Playing videos on mobile devices or televisions for example, uses the native players (as native, I mean the ones built by android or ios), this is because those players usually have access to specific features of the hardwares, lets say a specific video decoder chip for example. This means that developers don't have the freedom to do whatever they want when those players are displaying the video. So it actually makes sense for youtube to drop that feature because of that.
Development for mobile devices is just a nightmare (it's even worse then consoles, like xbox and playstation).
F_f_fff______
Company branches are usually created to limit liability.
wait a damn minute is like playing runescape in the background????
"...to all that exists..."
...except phones.