It turns out that OLED is not the next big thing for flat screen tellies. Sony has pulled the plug in Japan on sales of a next-generation flat TV due to sluggish demand.

Sony has pulled the production of ultra-thin TVs using organic light-emitting diode (OLED) technology for Japan, just a little over 2 years since it launched its first set. Apparently it is going to keep selling the TVs in overseas markets.

OLED displays were heralded as the next big thing because they use organic, or carbon-containing compounds that emit light when electricity is applied. They produce crisp images and do not need backlighting, making them slimmer and more energy-efficient than LCDs, the most popular type of flat TV.

Sony has aimed to become a leader in the technology and positioned the product as crucial in its drive to regain its reputation as an innovator. However it is still technologically difficult to make large OLED panels and to produce them cheaply, limiting their potential as a mass-market product. Sony's only model is an 11-inch set sold for $2,222 in Japan, considerably smaller and more expensive than other flat TVs.

Analysts say that the next big thing will now be 3D TVs and LCD TVs using light emitting diode backlights, and that mass adoption of TVs with OLED panels is some time off.