Pioneer of the television industry and Japanese quality brand Sony is ending the manufacturing of its own televisions.
In a press release, the company says it has reached an agreement with Chinese manufacturer TCL to establish a new joint venture.
The new joint venture will be responsible for designing and manufacturing all televisions sold under the Sony brand and Sony's Bravia brand. TCL will hold a slim majority stake in the joint venture (51%), while Sony retains the remaining ownership.
Going forward, all televisions sold under the Sony brand will be based on TCL's technology. The joint venture is expected to begin operations in March 2027, pending approval from competition authorities.
Sony has been one of the last Japanese manufacturers to remain relatively competitive in the increasingly tough television market. Chinese (TCL, HiSense) and Korean (Samsung, LG) brands have year after year squeezed Japanese manufacturers into an ever tighter corner.
Many long-established TV makers have, of course, ended up with similar or even more radical arrangements. For example, Philips has for years been a brand licensed from the Dutch "original" Philips to Hong Kong-based TPV Technology, and is used on televisions manufactured by TPV.
Until now, Sony has survived largely by focusing on the very high end of the TV market, leaving the mass market to be contested by Chinese and Korean brands. It will therefore be interesting to see whether TCL expands the use of the Sony brand into a broader range, including more affordable televisions.
In addition to television manufacturing, Sony's home theater systems, including audio equipment, will also be transferred to the new joint venture.
The new joint venture will be responsible for designing and manufacturing all televisions sold under the Sony brand and Sony's Bravia brand. TCL will hold a slim majority stake in the joint venture (51%), while Sony retains the remaining ownership.
Going forward, all televisions sold under the Sony brand will be based on TCL's technology. The joint venture is expected to begin operations in March 2027, pending approval from competition authorities.
Sony has been one of the last Japanese manufacturers to remain relatively competitive in the increasingly tough television market. Chinese (TCL, HiSense) and Korean (Samsung, LG) brands have year after year squeezed Japanese manufacturers into an ever tighter corner.
Many long-established TV makers have, of course, ended up with similar or even more radical arrangements. For example, Philips has for years been a brand licensed from the Dutch "original" Philips to Hong Kong-based TPV Technology, and is used on televisions manufactured by TPV.
Until now, Sony has survived largely by focusing on the very high end of the TV market, leaving the mass market to be contested by Chinese and Korean brands. It will therefore be interesting to see whether TCL expands the use of the Sony brand into a broader range, including more affordable televisions.
In addition to television manufacturing, Sony's home theater systems, including audio equipment, will also be transferred to the new joint venture.
