TV business faces meltdown

It's looking increasingly likely that the TV business is on the verge of a seismic shift; with some of the best know Japanese manufacturers reducing their investment and cutting ties to the technology. The high cost of the yen, which has appreciated around 40 per cent during the past four years, and falling global demand is to blame.

Panasonic is projecting a 420 billion yen net loss this year, due primarily to its struggling TV business. The company says it will suspend production of plasma panels at its largest Japanese manufacturing plant in Amagasaki, and is slashing annual production capacity down from 13.8 million panels to around 7.2 million. It's also selling one LCD facility while scaling back another.

Sony is in a similar, water-logged boat. The brand says it expects to haemorrhage 90 billion yen this year and has instigated a 'TV Business Profitability Improvement Plan.' This involves moving away from 'volume expansion' and instead focusing on developing next generation TV technology. It also looks likely to retreat from its LCD panel making joint venture with Samsung.

Rival Sharp says it will reduce production of LCD TV panels at its recently opened Kameyama factory by more than 80 percent. Hitachi has already packed its bags and left the market.