TCL will produce televisions carrying the Sony and Bravia names, but using its own display technology
[TOKYO] Sony Group is spinning off control of its home entertainment business, including its flagship Bravia television brand, to Chinese rival TCL Electronics. It is the latest Japanese company to cut its exposure in the low-margin segment.
The PlayStation maker said on Tuesday (Jan 20) that it will sell a 51 per cent stake in its home entertainment arm to TCL, and that the two companies intend to set up a joint venture (JV).
The JV will begin operations in April 2027, to produce televisions carrying the Sony and Bravia names, but using TCL’s display technology.
TCL, one of China’s oldest and largest electronics conglomerates, has for years tried to forge a major overseas business.
It took over one of the most prominent display booths at the Consumer Electronics Show 2026 conference in Las Vegas, replacing Samsung Electronics, and will now seek to leverage the Sony brand and its technical expertise to continue its expansion.
It has grown into a major budget TV name in the US, and previously licensed the BlackBerry and Alcatel brands for mobile devices.
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The Tokyo-based Sony has focused on expanding its portfolio of intellectual property assets – anime, live-action film, music and sports broadcasts – while trimming its presence in consumer electronics.
Faced with declining margins and growing price competition, it has already sold off or shuttered its operations in PCs, tablets and portable media players, as well as low-end TVs, despite the global recognition of the Sony brand.
Japanese companies have lost ground in TVs to their Chinese and Korean rivals.
Companies such as Toshiba, Hitachi, Mitsubishi Electric and Pioneer are exiting the business altogether while others, such as Panasonic and Sharp, have de-emphasised the business in their growth strategies.
The Sony Bravia TVs survived due to their positioning at the premium tier of the market, where consumers are willing to pay more for high-end picture and sound quality.
The company’s long-time marketing positioned the hardware as an extension of the Sony creative ecosystem, a way to experience content as intended by creators using Sony gear. BLOOMBERG
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