Three software ideas to turn GoPro into a full-blown media company
This Could Be a Game Changer for GoPro
It’s not news. Since GoPro’s IPO, GoPro’s shares have plummeted and have been falling short of meeting revenue expectations. Current shares are trading for less than 16 times 2016 earnings estimates, considerably low for a high-growth tech company.
How can a company once so glorified regain the confidence among investors?
If GoPro can reposition itself as a media empire rather than a gadget brand, it might have a chance to turn the ship around.
Selling accessories is not enough
There are plenty of accessories to purchase alongside with your GoPro, but most are not necessary. You can also purchase these accessories from a myriad of third-party sellers at a more affordable price.
Meet Karma, GoPro’s forthcoming product launching in 2016
GoPro’s plan to join the drone landscape may offer new hope to investors, but it’s far from a guaranteed success. It’s not as if GoPro is the first to enter the crowded marketplace for consumer drones.
Entering a new market isn’t easy. Targeting the drone market may give investors hope, but it’s important to note that investors gave Fitbit a cold reception when the company launched the new Fitbit Blaze, its new luxury product, at CES 2016. Unfortunately, Fitbit’s shares fell by over 10%.
Instead of creating more hardware, then experiencing the same growing pains, how about creating a non-physical product that existing GoPro users can depend on?
Disclaimer: I am not affiliated with GoPro and can’t pretend to understand the constraints and unique challenges GoPro faces internally. Just thought I’d join in on the conversation about GoPro’s future.
Three software features that could increase the value of GoPro by keeping users engaged:
- Cloud-based storage
- Content sharing
- A discovery platform
Let’s take you back to your last vacation. Where were you? I was in Lake Tahoe celebrating New Years. (Happy 2016!) I had forgotten to clear out my 64GB SD card from my GoPro and unfortunately I did not bring a computer or storage device to transfer my previous memories securely.
I started to record my time in the snow, but I ran out of space. It’s time-consuming to go through your SD card and make new space for your new captured memories. This also discourages my frequency of GoPro usage because I don’t upload my files often.
Like traditional cameras (and even smartphones), GoPro suffers from the same problem: files are stuck inside the SD card inside the camera.
How GoPro can solve this common problem (and diversify its products)
A cloud-based storage to store content allows easy sharing, more storage space, and ultimately move your files out of your SD card.
You:
- Would not have to constantly delete your files
- Won’t have to manually upload content to your computer
- Can share seamlessly
Most importantly…
GoPro can add a new revenue stream and potentially a whole new product.
Sharing — the more, the merrier
It’s difficult to share your captured memories from your GoPro with friends and family. You go scuba diving and capture amazing footage that only lives in your SD card. Friends and family will ask you for it, but it takes you forever to find time to upload your content. Whoever asked probably won’t see it in another few months — or ever.
If GoPro allows for a cloud-based solution, sharing capabilities with all your friends and family can be much more accessible and less time-consuming.
A new service, a new revenue stream
If GoPro can create a cloud storage space that automatically pushes content (via WiFi connection) from your GoPro to the web and into your account, GoPro can begin a new revenue stream for cloud-based storage.
High-definition content takes up a lot of space, but cloud storage is becoming more accessible.
There is a great opportunity for GoPro to partner up with cloud-based companies to open up a new source of monthly revenue and become less dependent on hardware sales.
GoPro: a video discovery platform?
GoPro already has an established channel with its users, the GoPro Channel on Youtube. Although GoPro’s media efforts haven’t generated significant revenue yet, the Channel already has over 3.6 million subscribers, which proves interest in the video/content space.
Vimeo has vindicated that other players can compete in the content space against YouTube. If GoPro adds a cloud-based storage as a service, GoPro can eventually create its own content/discovery platform to enable:
- Discovery through the sports community
- Content creation by creators who share a love of sports
- People to connect, inform, and inspire others across the globe
- A distribution platform for original content creators and advertisers
GoPro can capitalize on this opportunity and create a searchable content platform exclusively for sports.
Niche is the new mainstream
Twitch, the leading video platform and community for gamers, is a great example of potential growth when a niche community is amassed. Twitch has fostered over 200M people in the gaming community and revenue is predicted to reach over $465M by 2017, growing 21% per year.
GoPro can head into a similar direction, with the sole purpose of reaching and connecting the professional sports and/or sports enthusiast community. Global musicians like Justin Bieber, Marie Digby and Soulja Boy (lol) were discovered on YouTube. Why not have GoPro discover the next Tony Hawk?
To take this a step further, it would even be more interesting to integrate GoPro with live-streaming capabilities. How awesome would it be if you could watch a live basketball game in the same perspective as Stephen Curry? (Go Warriors!)
Even more revenue: partnerships with advertisers
GoPro can be pioneers in this sports-content market, especially with the 3.6 million subscribers already on GoPro’s YouTube channel. If GoPro can implement a cloud storage solution, GoPro can become its own content platform and host videos without relying on YouTube.
Similar to how YouTube monetizes through ad partners, GoPro can do the same with its audience. We’ve all heard of the big brands before — Nike, Adidas, Under Armour, and it’s about time smaller brands gain a piece of the market. GoPro can harness advertisers large and small to sell through targeted video ads.
GoPro can:
- Become an even a larger sponsor for extreme or professional sports
- Discover the next biggest athletes
- Partner with extreme/professional sports brands
- Foster its passionate sports community, bringing GoPro back to its early roots
Final thoughts
GoPro has an advantage over other competitors because it’s not just a hardware company; it’s culturally rooted in enabling people to capture themselves participating in their favorite activities. GoPro can continue to scale as a media brand, using hardware to support its software.
Launching new hardware products is great, but it’s not sustainable for long-term growth, especially in crowded marketplaces. GoPro can leverage its advantage to the fullest by offering a parallel media platform.
Even if a drone or a virtual reality product is GoPro’s next big product, the content discovery platform can be used similarly to grow and strengthen GoPro’s brand as a media lifestyle company.
Special thanks to damien.m.mcdonald and Lakshmi Mani!
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