(Credit: PCMag/Sony)
Sony and TCL have agreed to a new joint venture to manage Sony’s home entertainment business, with TCL holding 51% and Sony 49%.
The terms of the agreement will be finalized in March, after both companies have received the necessary regulatory approvals. Operations are expected to begin in April.
The new company will manage the designing, manufacturing, sales, logistics, and customer service for all of Sony’s televisions and home audio equipment worldwide. The name of the joint venture is yet to be revealed, but TCL is expected to retain the Sony and Bravia branding, according to a press release.
“In this market environment [driven by video streaming platforms], the new company aims to create innovative products that meet the expectations of customers worldwide and achieve further business growth through outstanding operational excellence,” Sony says.
As Bloomberg reports, the move comes after multiple Japanese brands, including Toshiba, Hitachi, and Mitsubishi, exited TV businesses due to stiff competition from Chinese and Korean brands. Additionally, the report states that Sony has been moving away from its hardware businesses due to lower margins and focusing on expanding its IP assets, including anime, films, music, and sports broadcasts.
In the premium TV segment, though, Sony Bravia is still a reputable brand. Many of the brand’s recent TVs received positive reviews from PCMag’s TV expert Will Greenwald.
“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 Sony’s CEO, Kimio Maki.