Operational control of Bravia TVs to shift to TCL as Sony focuses on brand and technology
Sony has taken a major strategic step to reshape its presence in the highly competitive global television market by entering into a joint venture with China’s TCL. Under the agreement, TCL will hold a 51% controlling stake in the new company, while Sony will retain a 49% stake. The joint venture is expected to begin operations in April 2027, subject to regulatory approvals and final agreements.
As part of the deal, operational control of Sony’s television and home audio business—including product development, manufacturing, sales, logistics, and customer support—will be transferred to the joint venture, where TCL will have decision-making authority as the majority owner. Sony, however, will continue to own its brand names, including the premium Bravia brand, and will contribute key intellectual property and proprietary technologies such as image processing and audio systems.
Sony has clarified that there will be no immediate change for consumers. Televisions will continue to be sold under the Sony and Bravia brands. Over time, however, the shift in operational control could influence manufacturing locations, pricing strategies, and product portfolios.
Pressure on Sony’s TV Business
The move comes as Sony’s television business has faced sustained pressure from intense global competition and shrinking margins. According to industry estimates from market research firm Omdia, Sony’s global TV market share prior to the announcement stood at around 4.2% by revenue and approximately 1.7% by shipment volume.
In fiscal year 2025, Sony’s TV division reported a nearly 9.6% year-on-year decline in revenue, reflecting weaker demand and pricing pressure across key markets. While Sony has maintained a presence in the premium segment—particularly OLED TVs priced above $2,500—it trails competitors. In this high-end category, Sony ranked third by revenue with a 15.7% share, behind Samsung and LG Electronics.
Sony’s premium strategy has focused on 55-inch, 65-inch, and 77-inch OLED models. In the overall OLED TV market, Sony holds the third-largest revenue share at about 10.2%. TCL, which currently does not offer OLED TVs, may use the partnership to accelerate its entry into the premium segment.
TCL’s Scale and Manufacturing Strength
TCL, by contrast, is one of the world’s largest TV manufacturers by volume. Industry estimates suggest the company shipped around 29 million televisions in 2024, giving it roughly a 14% share of global TV shipments. The company has been particularly strong in large-screen and Mini-LED televisions, leading global shipments of 85-inch and larger TVs and holding the top share in Mini-LED TV shipments.
Chinese manufacturers such as TCL and Hisense have steadily gained ground in global TV shipments, especially in larger screen sizes, benefiting from scale, cost efficiency, and strong supply chain integration.
What the Deal Means for Both Companies
For TCL, the biggest advantage is access to Sony’s premium brand equity. Sony-branded and Bravia TVs continue to command higher prices in many markets due to their reputation for picture quality and audio performance. By combining Sony’s technology with TCL’s manufacturing scale, the joint venture could allow TCL to expand its presence in the high-end TV market without building a premium brand from scratch.
For Sony, the joint venture allows it to reduce exposure to the capital-intensive, low-margin manufacturing side of the TV business while continuing to monetize its brand and core technologies. This approach mirrors strategies adopted by other Japanese electronics companies, such as Panasonic, which have scaled back or outsourced TV manufacturing amid long-term profitability challenges.
Overall, the Sony–TCL partnership highlights a broader shift in the global consumer electronics industry, where brand owners and technology leaders increasingly rely on large-scale manufacturers to remain competitive in a market defined by high costs, rapid innovation, and intense price competition.