I’m unsure anybody noticed this information coming, however the TV panorama as we all know it may change significantly over the subsequent yr or two. Sony, the storied Japanese TV model, has announced that it has signed a memorandum of understanding with its Chinese language competitor TCL. This potential partnership — with TCL set to carry a 51 % stake and Sony 49 % — has prompted hypothesis throughout the web and I’m certain many conferences at a few different TV corporations in South Korea.
Earlier than we get too apocalyptic and proclaim the top of Sony TVs, it’s essential to know that this isn’t a performed deal. The memorandum of understanding signifies that the 2 corporations are in discussions to probably set up a partnership. There’s nonetheless a few months earlier than any binding agreements can be drawn up, after which there’ll have to be regulatory approvals manufactured from these agreements. So there’s nonetheless an opportunity every part may crumble and nothing comes of yesterday’s announcement. Even when we do hear of a binding contract by the top of March, the brand new firm gained’t be totally in impact till April of subsequent yr, that means we probably gained’t see any bodily merchandise till late in 2027.
As of immediately, Sony already depends on completely different manufacturing companions to create its TV lineup. Whereas show panel producers by no means reveal who they promote panels to, Sony is probably going already utilizing panels for its LCD TVs from TCL China Star Optoelectronics Expertise (CSOT), along with OLED panels from LG Show and Samsung Show. With this deal, a relationship between Sony and TCL CSOT LCD panels is assured (though I doubt this might have an effect on CSOT promoting panels to different producers). And with TCL CSOT building a new OLED facility, there’s a possible future during which Sony OLEDs may even get panels from TCL. Though I ought to level out that we’re unsure but if the brand new facility could have the flexibility to make TV-sized OLED panels, not less than to start out.
So what does Sony get out of this deal? For one, it will get entry to the manufacturing capabilities of TCL. The Chinese language firm has lengthy promoted the truth that it controls the entire chain of its TV manufacturing course of, permitting it to extra simply dictate technological improvement and pricing. If we contemplate the X11L, it has two essential enhancements to blue mini-LED tech: newly reformulated quantum dots and an improved colour filter. Different corporations that use quantum dots may buy the brand new QDs and implement them.
However and not using a new colour filter, a TV can’t totally benefit from the brand new quantum dots. And since colour filters are included into the mom glass throughout manufacturing, altering a colour filter entails stopping panel manufacturing to replace equipment. It’s an enormous funding for an additional panel producer to try this for one among its TV manufacturing clients. That’s the place TCL has a bonus with its management over the end-to-end manufacturing of TVs. The opposite enormous profit to controlling manufacturing at that stage is having the ability to preserve general prices down. With this potential partnership, Sony beneficial properties entry to that manufacturing infrastructure.
For TCL, it will get majority management over the manufacturing of Sony TVs, but in addition entry to the know-how inside these TVs. What makes a Sony TV a Sony TV isn’t the way in which that it’s put collectively, however its SoC (System on a Chip) and film processing capabilities. Sony has lengthy been the chief in image processing, setting its TV efficiency other than opponents — the Bravia 8 II is particular due to the processing and never due to the QD-OLED panel from (presumably) Samsung Show.
In the end for these of us contemplating the acquisition of a Sony TV, the mix of TCL’s manufacturing pipeline and Sony’s wonderful image processing may result in even higher Sony Bravia TVs at extra accessible costs.
It might take quite a bit for Sony to fully step apart and permit one other firm to slap its identify on an inferior product
There’s some concern from followers that this might result in a Sharp, Toshiba, or Pioneer state of affairs the place the names are licensed and the TVs produced are a shell of what the manufacturers used to symbolize. I don’t see this occurring with Sony. Whereas the electronics facet of the enterprise hasn’t been as sturdy as prior to now, Sony — and Bravia — continues to be a storied model. It might take quite a bit for Sony to fully step apart and permit one other firm to slap its identify on an inferior product. And based mostly on TCL’s development and technological enhancements over the previous few years, and the shrinking gap between premium and midrange TVs, I don’t count on Sony TVs will endure from a partnership with TCL.
A number of key issues are nonetheless up within the air based mostly on the announcement. How a lot of Sony’s processing prowess goes to move into TCL TVs? The release from Sony mentions the brand new firm will mix Sony’s image and audio know-how with TCL’s manufacturing whereas retaining the Sony and Bravia identify, however there’s no point out if TCL beneficial properties entry to the Sony tech for its personal TCL-branded TVs. Might Sony proceed to supply premium TVs whereas TCL focuses on midrange and entry? It’s doable, however I feel it’s extra probably that we’ll see some midrange overlap between the manufacturers and that there’ll nonetheless be a definite design distinction between a Sony TV and a TCL TV.
The discharge had a quick point out about Sony’s audio know-how and residential audio gear. It feels like this new Sony/TCL entity will take over Sony merchandise together with soundbars, audio system, and possibly even AVRs and turntables. (I don’t assume headphones can be included, as Sony beforehand separated them right into a Private Audio division.) Each corporations have been behind opponents — significantly Samsung and its Harman properties — so becoming a member of forces may give them the raise they want.
Regardless of the rampant hypothesis, it’s clear we’re a pair years away from seeing the merchandise that come out of this partnership (assuming it formally occurs in a number of months). Each Sony and TCL will proceed to launch the TVs and audio merchandise they’ve each been creating in 2026 and into 2027. For my part, this potential deal demonstrates the house leisure powerhouse that TCL has grow to be.
However, extra importantly, I don’t imagine this alerts the top of Sony. As a substitute, it may be the start of a brand new part that would return it to relevance for almost all of TV consumers — and never simply the premium fanatics that populate videophile boards.
