Japanese TV Alliance

Sony’s prototype 56-inch 4K OLED.
Sony’s prototype 56-inch 4K OLED.

 

The Wall Street Journal (WSJ) reported on December 25 (local time) that Sony and Panasonic have decided to call off their alliance in technology for OLED panels for large-screen TVs by the end of December.

OLED TVs are thinner than LCD TVs, and can provide better picture quality. Sony developed the industry’s first 11-inch OLED TV in 2007, but ran into difficulties with the development of bigger OLED TVs, which are more popular.

As a result, the two Japanese companies forged a strategic partnership in June 2012 to cut costs and share risks, and built production facilities together. Both firms displayed 56-inch UHDOLED TVs at this year’s CES in January. 

The end of the partnership can be ascribed to the fact that consumers are leaning towards the UHD TV. The WSJ said, “Combined with the high costs, the increasing demand for ultrahigh-definition TVs, which promise four times the resolution of existing high definition LCD TVs, has also raised questions whether consumers are willing to try out another new technology and pay a premium for OLED TVs when prices for the new ultrahigh-definition TVs are already starting to come down.”

According to market research firm NPD DisplaySearch, the shipment volume of UHD TVs is expected to increase from 1.9 million units in 2013 to 12.7 million in 2014.

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