The TV market is very competitive, many multi-national companies from all over the world comes up with brand new technologies of their own to take the lead. But for now, LG has taken the lead with their OLED technology and with Bang & Olufsen joining them in this new venture.
The Partnership of LG and B&O
Bang & Olufsen will be putting their focus on the audio part of the project. They will design things like acoustics and smart home integration and the mother company LG will work on revolutionizing OLED technology. The outcome of this collaboration will be coming out next year in the form of a stunning OLED TV.
B&O says that this new strategic joint venture is a result of an internal review, this new collaboration will help the company, and it will boost the company’s long-term profit collection. The CEO of Bang & Olufsen said that this joint venture will help the company to overcome its key challenges which are related to scale and complexity.
World’s first OLED TV from Bang & Olufsen is set to release on 2017 and the company also confirms that this partnership involves association in other areas such as license and product activities.
Although it seems like a partnership with prospective reimbursement but it also comes with problems affecting both sides. Bang & Olufsen has not made any revenue for 3 years and at present they are in search of a prospective buyer. On the other hand, the OLED technology developed by LG is a long shot as there are many uncertain variables, because of this the competitive companies like Sony and Samsung had to let go of the OLED.
Last year LG has spent $8.7 billion on the project. Using OLED displays on B&O TVs will make the display device exceptional. LG’s proficient manufacturing will lower the cost of the TVs as well. Overall it is a very balanced partnership. The stock market is also taking the news very seriously as B&O’s share price has gone up 10% in early trading.