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Sony Electronics to spin off its TV business with TCL
Sony plans to spin off its TV business, with TCL taking a 51% stake, aiming to enhance home entertainment through combined expertise and resources.
This may well be the end of an era. Sony Electronics has announced an intention to spin off its TV business, with TCL Holdings Electronics Limited assuming charge of the Japanese company’s home entertainment business. The new structure, which will be finalised towards definitive binding agreements by end of March, will mean TCL holds 51% shares while Sony will hold 49% share. This agreement will be applicable in all countries Sony has a business footprint in, covering the complete 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,” says Kimio Maki, Representative Director, President and CEO, Sony Corporation. The TVs that will be manufactured as part of the Sony and TCL agreement will continue to hold the BRAVIA branding, as is 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 optimize the supply chain in order to deliver superior products and services to our customers, says 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 in China (Shenzhen, Huizhou, and Chengdu), Vietnam, Mexico, Poland, and India (the manufacturing facility is located in Tirupati).
There is belief that with TCL’s scale and manufacturing prowess, Sony Bravia will have a better chance of success amidst changing trends including video streaming preference, adoption of larger screen sizes with higher resolutions, and 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 include 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 be valued at $60.05 billion by the year 2030, up from the $26.3 billion valuation in 2026. India’s PLI, or Performance Linked Incentive scheme, has helped TV manufacturers tide over volatility with display panel pricing over the last few years, allowing brands to hold pricing.
Research firm Counterpoint estimates that Samsung leads India’s market share stakes with a 23.8% share, followed by LG (16.5% share) and Xiaomi (7.9%). TCL & Hisense also registered significant growth trajectory, with Hisense’s share in the premium segment specifically rising to 20% by Q1 2025. At this time, Sony’s India portfolio includes OLED, mini LED and Full Array LED display technologies.
