Shoot Video While Jumping At GoPro Inc (NASDAQ:GPRO) Boot Camp
GoPro Inc (NASDAQ:GPRO)’s interest in becoming a media is seeing the company reach out to little-known extreme athletes doing amazing things. For the most part, GoPro has relied on cameras sales for its revenue. There is always danger ahead for a company that depends on a single cash cow, which is why GoProis interested in media and content business. There’s also the fact that unique extreme content promotes it’s devices quite well.
GoPro Inc (NASDAQ:GPRO) is engaging an army of athletes, mostly those in extreme sports to create rare video content. The strategy that the company has taken is that it is not going for the already famous athletes. Instead, it is willing to grow together with professional extreme athletes who are not already widely known and are interested in fame.
Low-cost sponsorship deals
By targeting a bit unknown athletes, GoPro is able to ink sponsorship deals but at much lower costs than when it target the famous professionals. The aspect of growing together with its content creators also impresses GoPro.
There is still a long way for GoPro to go as far as becoming a media company pertains. In the process, the company will sink money into programs whose returns may not be commensurate with the investment that went into them. That explains why going for less costly sponsorship deals makes plenty of sense for GoPro.
In the front half of 2015, GoPro spent about $120 million on marketing related expenditures, and it could spend more in the future.
The extreme sports that GoPro Inc (NASDAQ:GPRO) is sponsoring include sky diving, rock climbing,mountain biking, skiing and kayaking. Athletes wear GoPro cameras on their body to shoot video in action. The result footages are edited and shared on YouTube and other social networks. The idea is to create a portfolio of rare sports video and create appetite for extreme sports videos.
Making cameras affordable
GoPro recently unveiled a low-cost Hero+ camera for $200 and cut the cost of the slow-moving Hero4 Session camera by $100. The company said the move is aimed at making its action cameras more accessible.
However, one major drawback for GoPro Inc (NASDAQ:GPRO) in its media/content agenda is that its edit videos from its cameras require time and some people may grow lazy to create their content and share it as required.
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