This may well be the end of an era. Sony Electronics on Tuesday announced that it will spin off control of its TV and home entertainment business to its Chinese rival, TCL Holdings Electronics Limited. The new structure, which will be finalised by the end of March, will see TCL holding a 51% majority stake, while Sony will hold a 49% share. This agreement will apply in all countries where Sony has a business footprint, covering the full spectrum from product development and design to manufacturing, sales, logistics, and customer service for products, including televisions and home audio equipment.
“By combining both companies’ expertise, we aim to create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide,” said Kimio Maki, representative director, president and chief executive officer, Sony Corporation, in a statement.
The TVs manufactured under the Sony and TCL agreement will continue to use the BRAVIA branding, as it does in the current format. That isn’t expected to change, considering the brand’s legacy.
“Through strategic business complementarity, technology and know-how sharing, and operational integration, we expect to elevate our brand value, achieve greater scale, and optimise the supply chain in order to deliver superior products and services to our customers, said DU Juan, chairperson, TCL Electronics Holdings Limited.
The foundation of this agreement hinges on the hope that Sony and TCL together will be able to leverage the technology and specifically Sony’s high-quality picture and audio advancements for the next lineup of products in the home entertainment portfolio, while making best use of TCL’s own display technology, industrial footprint and supply chain strengths.
TCL manufactures TVs at multiple facilities in many countries, with major manufacturing hubs including China (Shenzhen, Huizhou, and Chengdu), Vietnam, Mexico, Poland, and India (the manufacturing facility is located in Tirupati).
It is expected that, with TCL’s scale and manufacturing prowess, Sony Bravia will have a better chance of success amid changing trends, including video streaming preferences, the adoption of larger screen sizes with higher resolutions, and the rise of smart TV features. Google TV, Samsung’s Tizen OS, and LG’s Web OS, alongside Apple’s tvOS and Amazon’s revamped Fire TV OS, are all vying for a piece of the smart TV market share pie.
Among the questions that remain unanswered are potential changes to Bravia TV pricing strategies (they play squarely in the premium segment, at the moment) as it competes with the likes of Samsung, LG, as well as Xiaomi, and whether Sony will leverage all of TCL’s global manufacturing facilities for manufacturing the future home entertainment products.
According to research by Mordor Intelligence, India’s smart TV and OTT market is expected to reach $60.05 billion by 2030, up from $26.3 billion in 2026. India’s PLI, or Performance-Linked Incentive scheme, has helped TV manufacturers tide over volatility in display panel pricing over the last few years, allowing brands to hold pricing.
Research firm Counterpoint estimates that Samsung leads India’s market share with 23.8%, followed by LG (16.5%) and Xiaomi (7.9%). TCL & Hisense also registered significant growth, with Hisense’s share in the premium segment rising to 20% by Q1 2025. At this time, Sony’s India portfolio includes OLED, mini LED and Full Array LED display technologies.
