Sony Group is transferring majority control of its Bravia television and home audio business to Chinese electronics company TCL. The two firms will establish a new joint venture, with TCL holding a 51% controlling stake and Sony retaining 49%. This significant shift is expected to begin operations in April 2027, following final agreements and regulatory approvals.[indiatoday+8]
A New Chapter for Bravia
The planned joint venture will take over all aspects of Sony's home entertainment division globally. This includes product development, design, manufacturing, sales, logistics, and customer service for televisions and home audio equipment.Despite the change in control, future products will continue to carry the well-known "Sony" and "Bravia" brand names.[flatpanelshd+15]
Under the agreement, Sony will contribute its established high-quality picture and audio technologies. It will also bring its strong brand value and operational expertise, including supply chain management, to the new company.TCL, in turn, will provide its advanced display technology, global manufacturing scale, and cost efficiencies. The Chinese company also offers its extensive industrial footprint and vertical supply chain strength.[indiatoday+16]
Sony has relied on external suppliers for LCD and OLED panels for some time. TCL, however, has significantly expanded its own display production capabilities.This partnership aims to combine Sony's premium brand and technological know-how with TCL's manufacturing prowess and cost advantages.[indiatoday+4]
Why Sony Made the Move
This strategic partnership reflects Sony's ongoing effort to reduce its exposure to the highly competitive and low-margin television market. The global TV business faces intense price competition from major players like Samsung, LG, Hisense, and TCL.Sony's television revenue for the fiscal year ending March 2025 declined approximately 9.6% year-over-year.The company's global TV market share now trails mid-tier brands such as Xiaomi.[indiatoday+7]
Sony Group has increasingly focused on expanding its intellectual property assets. These include anime, live-action films, music, and sports broadcasts.The company has previously sold off or closed other consumer electronics operations. These divestments included PCs, tablets, and portable media players, as well as low-end TV segments.[japantimes+4]
Kimio Maki, Representative Director, President, and CEO of Sony Corporation, expressed optimism about the collaboration. He stated that combining both companies' expertise aims to create new customer value in home entertainment.This move positions Sony to continue offering premium TVs without the full burden of manufacturing.[flatpanelshd+5]
Impact on Consumers and the Industry
For consumers, this partnership could mean more competitively priced Sony Bravia televisions in the future. The new company plans to leverage TCL's efficient production methods.However, the core Sony image processing and sound tuning are expected to remain.[tomsguide+8]
TCL, known for its affordable smart TVs, aims to strengthen its position in the premium market. Gaining operational control of the globally recognized Bravia brand provides a significant opportunity.This move allows TCL to compete more directly with high-end brands like Samsung and LG.[displaydaily+2]
The deal is part of a broader trend among Japanese electronics companies. Many have reduced or exited the television manufacturing business due to market challenges. Toshiba, Hitachi, Mitsubishi Electric, and Pioneer have already left the segment. Other companies like Panasonic Holdings and Sharp have de-emphasized their TV operations.The final binding agreements are expected by the end of March 2026, with the joint venture set to begin operations in April 2027, pending all necessary regulatory approvals.[japantimes+9]
