Sony is giving TCL control over its high-end Bravia TVs
TCL is taking a majority stake in Sony’s Bravia TV series, the two companies announced today.
The two companies announced that they have signed a memorandum of understanding and aim to sign binding agreements by the end of March. Pending “relevant regulatory approvals and other conditions,” the joint venture is expected to launch in April 2027.
Under a new joint venture, Huizhou, China-headquartered TCL will own 51 percent of Japan-headquartered Sony’s “home entertainment business” in Tokyo, and Sony will own 49 percent, according to an announcement today, adding:
The joint venture will operate globally, managing the entire process from product development and design to manufacturing, sales, logistics and customer service for products such as televisions and home audio equipment.
The joint venture will continue to sell televisions and home audio gadgets under the “Sony Bravia” brand; However, the TVs will rely on TCL display technology. The suggested joint announcement focuses on larger TVs, higher resolution screens and “smart features.”
This news comes as the television industry faces declining margins and has become more competitive. In the meantime, devices have become cheaper and people are buying new TVs less frequently. Competition between Chinese companies, such as TCL and Hisense, and South Korean companies, such as LG and Samsung, has intensified, with Chinese companies making budget and mid-range TVs increasingly competitive, and the South Korean government has reportedly been pushing local TV companies to work together. Many Japanese companies, including Toshiba and Sharp, have already abandoned or scaled back their television operations.
The upcoming joint venture also comes as Sony has focused less on electronics in recent years. For example, it stopped making its Vaio PCs in 2014 and discontinued Blu-rays last year. At the same time, it focused on intellectual property, such as cartoons and films, as noted by Bloomberg. The joint venture is expected to allow Sony to focus on its more lucrative businesses and TCL to gain an advantage by leveraging Sony’s more premium devices and Bravia brand.
