GoPro will transform media companies in the future

Netease Technology News June 27, according to "Connection" website reported that millions of people use GoPro wearable cameras to record their parachuting, drones flying, riding sharks and other activities. But the most likely head start for this San Mateo, Calif.-based company is the completion of the largest consumer electronics company IPO in more than two decades.

Smartphones can do anything, and can be used for GPS navigation systems, video game consoles, fitness trackers, stereos, cameras and more, so a single consumer electronics company that does one thing at a time can be risky, if done very well cause.

However, GoPro raised $ 427 million in IPO with a valuation of $ 2.96 billion, something unusual. After all, Flip Video cameras, once the dominant player in the video camera market, have been declining only a few years ago due to the continuous improvement of smartphone cameras. Even though Flip failed, GoPro, which introduced its camera for the first time in 2004, has grown. The difference between GoPro and Flip is that the company sells not just video cameras, but something that smartphones can not replace: the experience of using a camera.

Ben Arnold, consumer science analyst at the NPD Group, said: "They do not just sell cameras, they sell skiing and surfing memories, and I think we're going to be in an era in which lifestyles matter a lot in technology," he said. This is why brands such as Beats and FitBit are doing well. These brands tell the people who wear these products. The iPhone became a symbol of status when it was first introduced, and now it's just as essential as a shoe. But if you see a GoPro Hero 3 camera tied to your chest, this shows that the person is showing the world that he is going to do something exciting.

The customer helped the company establish this prestige. Led by GoPro CEO and founder Nick Woodman, the company's users continually send their adventurous videos to the internet. In 2013 alone, GoPro customers uploaded a 2.8 year video. According to the company's S1 file, over 50 million hours of GoPro video were viewed in the first quarter of 2014. Each video not only demonstrates the user's experience, but also serves as an ad for many potential customers to buy GoPro cameras.

So while GoPro sells only cameras (and accessories), it is better known as an adventure sports brand than a camera maker. Now, the challenge before GoPro is how to make money from the brand rather than just rely on the camera. In the S1 document, the company acknowledged that almost all of its revenue came from the camera, as long as the sales decline will affect the business. At the same time, the company does not expect the future to grow as fast as it does in the future.

This expectation has come true, with GoPro's revenue revenue declining from 125% to 87% last year. To avoid the dilemma posed by market saturation, the company is now preparing to transform itself into a media company. For example, the company plans to launch the GoPro Channel on Xbox Live and has recently signed an agreement with Virgin America to provide video for television entertainment. Although GoPro has not received any revenue from these agreements, it may receive advertising revenue this year from Xbox, Virgin America and YouTube.

If GoPro can be transformed successfully, it will be a model for successful consumer electronics companies in the smartphone-dominated world. Adam Dornbusch, the company's director of content distribution, recently concluded: "Cameras are just the tools we get."