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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Japan’s Sony Group is reportedly planning to spin off its TV business (Home Entertainment division) and establish a joint venture with Chinese electronics giant TCL. If the plan proceeds, TCL will assume control of Sony’s TV operations in Japan, raising expectations of intensified competition from Chinese manufacturers against South Korea’s leading TV companies in the global market.
According to industry sources on January 21, Sony and TCL signed a memorandum of understanding (MOU) on January 20 to create a joint company that will acquire Sony’s Home Entertainment business. The joint venture will have a 51:49 ownership structure, with TCL holding the majority stake.
The new company will manage all aspects of the TV business, including product development, design, manufacturing, sales, logistics, and customer service. Sony stated that the collaboration aims to combine its decades of expertise in high-quality audio-visual technology, brand value, and supply chain management with TCL’s advanced display technology, industrial capacity, cost efficiency, and vertically integrated supply chain to expand the business.
The joint products will be released under the “Sony” and “BRAVIA” brands, indicating that TCL’s displays will carry Sony’s premium brand names. Analysts note that this move allows TCL to leverage Sony’s brand image in the premium TV market, while Sony benefits from TCL’s cost competitiveness to pursue future growth.
Market research firm Omdia reported that in the third quarter of last year, Sony’s sales in the premium TV segment (over USD 2,500) lagged significantly behind Samsung and LG but still ranked among the top three. In terms of total TV market revenue, Samsung led with a 28.9% share, followed by LG at 15.2%, TCL at 13.1%, and Sony at 4.2%, placing fifth.
Industry observers predict that through this joint venture, TCL may leverage Sony’s technology and brand strength to increase its presence in the OLED market, where South Korean companies currently dominate.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
