GoPro unveiled two new
devices in a company press release dated September 28th, 2017. Entitled,
With HERO6,
GoPro Sets New Bar For Image Quality, Stabilization And Simplicity, the
company communique teases enhanced convenience and performance with (per the
article sub-header) a Custom GP1
Processor, Next-Level Video Stabilization and 3X Faster QuikStories. However, while these vague technical descriptions are
subsequently explained, the HERO6’s
differentiation remains in its “rugged, waterproof, go-anywhere design,”
which is and always has been for use by extreme outdoor enthusiasts in their
preferred environments. The ability to shoot at 33 feet underwater (or at one
atmosphere of ambient atmospheric pressure)
without a bulky camera housing allows recreational SCUBA divers to
capture their experiences at depth while remaining streamlined to reduce air
consumption. Further, the HERO6’s GP1
Processor increases performance, captures twice the video frames per second,
and (compared to the HERO5) improves footage
transport time by three times. Reduced transfer
time equates to faster turnaround between shooting and sharing, and sharing has
never been easier.
The company’s QuikStory
feature (available on both of GoPro’s new devices) automatically transfers
footage directly to a smartphone before editing with music and effects. The
video is then available for posting on Instagram,
Facebook, and other social media platforms, and QuikStories can also be shared
via text or email. This allows adrenaline junkies more time to create new
videos out in the world rather than sitting at a PC editing and posting
content. Additionally, the device is specifically designed to outperform
in low light conditions (a notorious smart phone camera shortcoming) where
digital noise or grainy shots prevent clear photos and video footage. Also, GPS
features allow GoPro’s aerial photographer (the Karma drone) to either hover or
follow, thereby providing ultimate tracking shots, which were previously
cost-prohibitive to all but professionals with big budgets. Subjects remain in
frame from the air, and Video Stabilization allows mountain bikers, skydivers,
skiers and snowboarders (with devices mounted to themselves or their equipment)
to produce professional footage without camera shake. Footage ruined by
earthquake-like shaking can be common when attempting in-motion shots with
smartphones or handheld digital mini-cameras, and adjusting camera settings (or
even holding onto a device) during shooting is not an option for participants
of extreme sports.
In order to facilitate a
more hands free experience, GoPro not only offers a variety of mounts for both
the HERO6 and Fusion, but All-New Touch Zoom. While
the feature’s details on the company website were limited, photographers
recognize CDC (Compact Digital Camera) specifications rather than the
professional’s preference; a SLR (Single-lens Reflex) camera uses a series of mirrors and lenses, and
manual manipulation and / or preset modes for zoom, shutter speed, aperture for
light, focus, and more. This requires considerable knowledge about the
camera’s operation and the ability to manipulate settings based on the
environment. Conversely, a CDC camera is your classic point and shoot, but with
digital photos versus film. The amount of pixels per square inch (PPI) must be
considerably higher for cameras that don’t use a lens to zoom, but rather the
photo itself is enlarged to get the closer view. Traditionally, quality
photographs require a minimum of 300 PPI, and though HERO6’s specifications describe video related
information, the Fusion boasts an astounding 18MP Spherical Photo (MP = megapixel = a million pixels). This allows a cameraman to forego a finger fumbling zoom during
filming, as any close-ups needed may be obtained in post-production by
enlarging the existing image.
GoPro’s Fusion Spherical
Camera does what neither the iPhone nor the HERO6
can. According to the company website, along with 5.2K spherical video and
the aforementioned 18MP spherical photography, audio’s importance (which
seems to have been relatively ignored by mobile device makers in the past) has
been elevated. Rather than the traditional unidirectional microphone common on
most digital recording devices, GoPro’s Fusion records in 360 degrees. This
allows for more professional sounding content, cameraman commentary, and less post-production
editing and / or voiceover requirements. Once again, any feature that can be
performed in-camera and in the field reduces time needed for editing afterwards,
and this combination puts sportsmen back outside instead
of behind a monitor.
Yet,
beginning in early 2018, even the most ardent outdoorsman may find reason to saddle
up to a screen; OverCapture™ will allow the Fusion’s spherical shots to be
shared as “traditional fixed perspective video” or as VR content. A
videographer can “capture every angle at once and choose later which
perspective they want to share via the GoPro app.”[1] Though
the new version of the GoPro App (available for iOS and Android) is not
expected to be released until Q1 2018, Fusion’s ability to record both video
and audio in 360 degrees, and then transition that footage for use on
traditional platforms will likely have adrenaline junkies trading game consoles
for GoPro editing on rainy days.
Nevertheless, will new
products be able to tip the financial scales for the one-time iconic behemoth
of videography? Per Yoree Koh of the Wall Street Journal, “The product launches
come as GoPro is trying to rediscover its footing after a rough year that
included supply-chain snafus, an embarrassing recall and layoffs. Sales had
dropped by half.” [SIC] Product-related myopia prevented the company from being
aware of technological advances in the macro environment; consequently, sales
plummeted as competition increased in the form of smartphones. According to
author and investor Robert Riesen, “There is
still serious weakness in the action camera business and I believe it's going
to force GoPro to make some tough decisions over the next 12 months.”[2] Though
the company’s stock improved after the second quarter, and “GoPro's latest
earnings release showed year-over-year sales growth,” decreasing margins,
uncertainty regarding cash flow, and diminishing cash reserves may offset any gains
HERO6 and Fusion can provide. Consequently, GoPro's relative success in the
last few years is based on misleading information. Riesen illustrates that YoY
improvements are a relative measure, based on the company’s 2016 (-27%)
decrease in growth. Consequently, modest improvements in 2017 are not an
indicator of company profitability, but rather, how poorly the company
performed in the past.
This poor performance is
due (in part) to a plethora of competitors.
The action camera market has become as competitive as the events being
filmed with “Sony (NYSE:SNE), Garmin (NASDAQ:GRMN), Nikon, and many others” entering the
game. [3] Price
reductions to increase market share have driven profit margins down, thereby
decreasing overall company profitability, and GoPro has consequently narrowed its
target market focus. Appealing to a niche demographic of action/adventure
enthusiasts, athletes, and aspiring wilderness documentarians, GoPro is
positioned on the edge of a cliff; will there be enough high-octane consumers
to bungee their books back into the black? While the inferior quality of cell
phone cameras may have initially contributed to the company’s success,
technological advances at Apple, Samsung, and other smartphone manufacturers have
ensured that consumers merely seeking a durable camera remain strangers to the GoPro
brand. For individuals (especially
intermediate and professional photographers) shopping for digital cameras that
are not integrated into a smart phone, Canon’s EOS
Digital SLR Cameras (ranging from
$449 to $5,999), and
Nikon’s low end waterproof PowerShot D series
($329.99) capture moments in time for consumers of all budgets but lack video
capabilities. HD Consumer Video Camcorders from Canon,
Sony, Vivitar, and countless others are available from $2.69 on eBay to $96,250.00 from
Adorama Camera. Should one wish to have a portable device that is able to
capture both still photos and video footage while being able to transfer the
data to a PC for editing on any number of software platforms, the options are
numerous enough to be mind-numbing.
With adventure seekers as
a targeted market segment, especially those participating in underwater and/ or
hand-occupying activities, GoPro has positioned itself for extreme sports
enthusiasts. To engage customers, the GOPRO Movement (available via the company
website) allows users to provide an email address for videos, news, tutorials,
software updates, special deals, and giveaways. Yet, how well can the HERO6 and
Fusion perform in the saturated marketplace? If the aforementioned website is
any indicator, one might chose to leave the lens cap on. While GoPro's new
devices offer the ease and convenience of point and shoot photography, learning
more about the features offered with each proved more challenging. The
company’s website (https://gopro.com/) is a pictorial
billboard offering very little textual information regarding specifications,
features, or product comparisons. In fact, when one clicks to learn more about
a product, additional high-resolution photos of the selected device, or images
of sports enthusiasts using the product are presented; site visitors’ efforts
to Learn More by clicking inevitably
leads to videos and testimonials, not text providing product specifications.
One must select Investor Relations at the far bottom of the web page, and then Press Releases in order to locate desired information in writing. For
those not familiar with GoPro's devices, the customer effort required to learn
on the company’s own website creates a negative first impression. Will
troubleshooting be this difficult? Is there an instruction manual, or do I have
to watch a video? For the motivated and dedicated seeking simple product
information, the September press release offers specifications for the
company’s new releases at https://investor.gopro.com/press-releases/default.aspx.
Nevertheless, despite GoPro’s
obvious target segment of loyal adventure seeking photographers, new products
may not be sufficient to rescue the company from the aftermath of marketing
myopia. Technological advances in smart phone video cameras, in-phone camera apps
like VSCO (https://vsco.co/), and the reduction in
digital camera costs have adversely affected brand loyalty and customer lifetime
value. With the HERO6 at $499 (about $100 more than its predecessor), and the Fusion
(now available for preorder) at $699, each
camera also requires a high-performance microSD card - sold separately for $59.99. Additional mounts and options may add to the
overall sale, but some features won’t be available until Q1 2018. For roughly the same
price, an entry level premium smart phone can be purchased. GoPro consumers
will have to need, want, and demand the rugged durability that differentiates
the company from its competitors, but only time will tell if GoPro grows or
goes.
[1] Koh, Yoree. “GoPro Unveils New Devices
as It Faces Heat From Smartphone Cameras.”
The Wall Street Journal, 17 Sep. 2017, wsj.com/articles/gopro-unveils-new-devices-as-it-faces-heat-from-smartphone-cameras-1506623263. Accessed 17 Oct. 2017.
[2] Riesen, Robert. “This Is Why GoPro
Will Be Sold In The Next 12 Months.” Seeking
Alpha, 8 Aug. 2017, seekingalpha.com/article/4096409-gopro-will-sold-next-12-months. Accessed 17 Oct. 2017.
[3] Riesen, Robert. “This Is Why GoPro Will Be Sold In The Next
12 Months.” Seeking Alpha, 8
Aug. 2017, seekingalpha.com/article/4096409-gopro-will-sold-next-12-months. Accessed 17 Oct. 2017.
No comments:
Post a Comment