A significant change in Sony’s worldwide TV strategy was made when it decided to give China’s TCL operational authority over its television and home audio operations through a new joint venture. As per the arrangement, Sony will keep 49% of the business’s shares, while TCL will retain 51%. Subject to regulatory permissions, the joint venture is anticipated to start operations in April 2027.
The new company will oversee the whole value chain, including product development, manufacture, sales, distribution, and customer service, even though Sony will still own and license its Sony and Bravia brands. Although there won’t be any immediate changes for customers, the alliance may eventually have an impact on manufacturing sites, pricing, and product mix.
The action is taken in response to ongoing pressure on Sony’s TV division. Due to fierce competition, its global market share has decreased, and in FY25, revenue dropped by about 10% year over year. Sony is still a dominant player in the high-end OLED TV industry, but it is not as prominent in the consumer market.
The collaboration gives TCL access to Sony’s high-end brand equity and image processing capabilities. TCL may be able to advance up the value chain with the JV with regard to its manufacturing scale and leadership in large-screen and Mini-LED TVs. The agreement lowers operational risk for Sony while maintaining its relevance in the premium TV market.
