Hotels, hospitals, public institutions join target market as Samsung expands maintenance services, pricing options
Samsung Electronics is expanding its appliance subscriptions business to corporate customers, as the company says revenue from the segment is nearing 1 trillion won ($740 million), broadening a service that has so far focused mainly on consumers.
The company said Monday it will offer subscriptions to public institutions and businesses including hotels, hospitals and financial companies. Corporate customers can spread out the upfront cost of buying appliances and receive up to six years of free after-sales service.
Samsung is also extending its BluePass maintenance program to business customers. The service includes scheduled maintenance, engineer visits within 48 business hours for emergency requests and designated engineers for individual workplaces.
At a media briefing in Seoul, Samsung said it also sees demand from public housing operators, dormitories and smaller commercial businesses.
LG Electronics entered the appliance subscription market earlier and generated about 2.5 trillion won in subscription revenue last year, according to the company. Its subscription revenue reached about 1.3 trillion won in the first half of 2026.
Samsung launched its AI Subscription Club in Korea in December 2024. Lim Seong-taek, executive vice president for Samsung Electronics' digital appliances business, said Monday that revenue from the business is now approaching 1 trillion won.
The company is also renaming the service "Samsung AI Subscription" and adding more options for individual customers. The "AI" label refers mainly to Samsung's artificial intelligence-enabled appliances and related features such as SmartThings connectivity and alerts that can flag potential product problems before a service request.
One service package is aimed at newlyweds and customers who move frequently. It includes appliance inspections after moving, cleaning visits at night or on holidays and restoration work after certain built-in appliances are installed or removed.
A separate service for older customers provides regular calls concerning product use and consumable replacement, along with a dedicated consultation channel.
Samsung is also adding a lower-cost maintenance option that reduces the number of engineer visits or specialized services depending on the product. For one air conditioner under a six-year contract, Samsung said the monthly fee would fall from 92,000 won to 82,000 won, a reduction of more than 10 percent.
In Korea, appliance subscriptions generally resemble multiyear rental contracts rather than cancel-anytime digital subscriptions. Customers pay monthly while receiving repairs, maintenance and other care over the contract period.
Samsung has described the subscriptions business as a way to extend its relationship with customers beyond the initial appliance purchase. "The value of a product is moving beyond the functions and performance of the hardware itself toward an integrated experience covering replacement, maintenance and overall convenience," Lim said.
Samsung has also considered expanding appliance subscriptions overseas. A company official told The Korea Herald that such services could spread to more markets over the longer term, but there is no specific country or launch timetable to disclose.
mjh@heraldcorp.com