Fewer people tune in to traditional sets as streaming services and smartphones dominate younger audiences. Sony’s decision to spin off its TV and home‑audio division into a joint venture with China’s TCL Electronics reflects that pressure. TCL will own 51 % of the new entity, taking operational control while Sony retains the Bravia brand.

TCL counts on scale to offset the industry’s razor‑thin margins. Shipping roughly 30 million sets annually spreads fixed costs and cushions panel‑price swings. Leveraging the Sony name lets TCL command higher average selling prices, while smart‑TV platforms open advertising and services revenue, a model already used by Xiaomi.

The bet appears to pay off. TCL’s share price has nearly doubled in twelve months and November shipments rose 20 %, cementing its rank as the world’s second‑largest TV maker per Counterpoint Research. Investors will watch whether the shift from volume to premium value can sustain growth as viewing time continues to fall.