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The subtitle file must be in the same folder as the video file and have the same name as the video file. These are MicroDVD (.srt), SubRip (.sub) or TMPlayer (.txt). Your TV's manual states that only three soft subtitle formats are supported. Soft subtitles or selectable subtitles can be turned on or off. If the section of the picture where they appear hasn't been cut off by zooming in using the TV's aspect ratio control, then they will always be visible. Are you sure that you have hardcoded subtitles? Hardcoded subtitles are a permanent part of the picture and cannot be turned off. I wonder if there is a separate setting on my Panasonic TV to enable subtitles on the USB? Or maybe this is not supported? There is a subtitle button on the Panasonic remote but that does not help.
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I also have an LG TV and the subtitles display correctly using the same USB stick and avi videos. I'm watching avi files with hardcoded subtitles on a USB stick through one of the USB ports. The TV displays the subtitles correctly when watching content from the Sky box (the subtitles are enabled on the Sky box via the Sky remote). The TV inputs I use are a Sky box or USB. I bought a Panasonic TX-55FX700B (4K LED display) TV little over a year ago so the TV is quite new.
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