With this new agreement between these two giants of the television industry, the television landscape as we know it could significantly change over the next two years. Sony, the famous Japanese television brand, announced that it had signed a memorandum of understanding with its Chinese competitor TCL. This potential partnership, in which TCL would hold 51% of the shares and Sony 49%, has sparked much speculation.
Although there is still a year before the partnership is signed, nothing is decided yet and the project could fall through. And even if it was concluded, it must also be approved by regulatory authorities.
And if everything goes as planned, we will discover the new products of the new company only towards the end of 2027.
Please note that Sony and TCL know each other well; the Chinese company manufactures and sells Japanese-style LCD panels through its China Star Optoelectronics Technology factory.
What does Sony gain?
On the one hand, the agreement gives it access to TCL’s production capacities. The Chinese company has long touted the fact that it controls the entire manufacturing chain of its LED TVs, making it easier to dictate technology development and pricing. Looking at the X11L TVs, it features two significant improvements over the mini blue LED technology: the newly reformulated Quantum Dot technology and an improved color filter.
On the other hand, to take full advantage of Quantum Dot technology, you must use the new color filters which are integrated into the mother glass during manufacturing. Changing the filter remains very expensive because you have to stop all production.
This is where TCL has an advantage with its control over the end-to-end production of TVs. The other huge benefit of controlling production at this level is being able to keep overall costs low. Through this potential partnership, Sony has access to this manufacturing infrastructure which ensures it is more competitive in the market.
What does TCL gain?
For TCL, this allows it to obtain majority control over the production of Sony televisions, but also to access the technology integrated into these televisions. What makes a Sony TV a Sony TV isn’t how it’s put together, but its System on a Chip (SoC) and image processing capabilities. Sony has long been a leader in image processing, which sets the performance of its TVs apart from that of its competitors. The Bravia 8 II is special because of its processing and not because of the QD-OLED panel coming from (presumably) Samsung Display.
Great potential from the merger of the two companies
Ultimately, for those of us considering purchasing a Sony TV, the combination of TCL’s manufacturing line and Sony’s excellent image processing could result in even better Sony Bravia TVs at more affordable prices.
In addition, Sony’s home audio devices – soundbars, speakers, amplifiers – are included in the agreement, according to the Japanese giant’s press release.
The next few months will tell us whether the Sony-TCL merger will take root. One thing is certain, this earthquake in the consumer entertainment device industry will have repercussions among competitors who will have to adjust to this new giant Sony-TCL.
