It’s the end of an era and the beginning of a new one with Sony’s BRAVIA television business moving to a joint venture with TCL. The two companies announced yesterday that they had entered into a new agreement whereby a new company will utilize Sony’s name and BRAVIA branding. TCL will have 51% ownership of the new company, with Sony holding 49%. According to the press release, TCL will provide its advanced display technology along with “global scale advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength,” while Sony will leverage its “high-quality picture and audio technology cultivated over the years, brand value and operational expertise, including supply chain management”.
“We are pleased to have reached this agreement with TCL for a strategic partnership. By combining both companies’ expertise, we aim to create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide.”
– Kimio Maki, Representative Director, President and CEO, Sony Corporation
Things have been getting shook up in the television market for some time now. Between advancements in OLED and Quantum dot technologies, in which Sony has been at the forefront, along with LG and Samsung, and the introduction of mini-LED displays, a specialty of TCL, which offers models with a peak brightness up to 10,000 nits, the television market has become very competitive in recent years. In addition, a recent study by Rtings.com showed that while OLED TVs greatly outlasted those with standard LCD panels, high-quality branding didn’t always play a factor, further giving ground to lower-cost products by companies such as Vizio and TCL. This being stated, demand for costly, well-known top-tier brands is lessening as consumers seek out better deals that provide a high-quality viewing experience.
TCL also has ties to Samsung, following the 2022 purchase of some LCD patents and taking over one of Samsung’s production plants. It’s apparent that TCL is making aggressive moves in expanding its presence within the television industry, and this partnership with Sony is the next step of a larger strategy in motion.
“We believe that this strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL, creating a powerful platform for sustainable growth. Through strategic business complementarity, technology and know-how sharing, and operational integration, we expect to elevate our brand value, achieve greater scale, and optimize the supply chain in order to deliver superior products and services to our customers.”
– DU Juan, Chairperson, TCL Electronics Holdings Limited