Almost 18 months ago, Sony and Panasonic partnered up in order to develop production technology for organic light-emitting diode display (OLED) panels for large-screen TVs. Now the two companies are cancelling their partnership citing challenges involved the next-generation TVs to the mass market. However, the two companies may still explore cooperating on production technology for OLED panels in the future.

Sony Corp. 6758.TO -0.67% and Panasonic Corp. 6752.TO +0.33% have decided to call off a tie-up in developing production technology for big and ultrathin televisions, underscoring the challenges of bringing the next-generation TVs to the mass market. People with knowledge of the matter said Wednesday the alliance in technology for organic light-emitting diode display, or OLED, panels for large-screen TVs is expected to end this month, only a year and a half after Japan’s two major consumer electronics rivals decided to work together.