What happened
Content is king, as the old maxim goes, and investors clearly took this to heart with GoPro (GPRO 6.84%) stock on Wednesday. The digital camera maker's share price rose by nearly 3% on the day, thanks to the announcement of a new content deal.
So what
GoPro, in collaboration with streaming video specialist Cinedigm (CIDM 2.68%) and content producer Roundtable Entertainment, is developing the GoPro Channel, Cinedigm announced Wednesday morning. As it nearly goes without saying, this channel will prominently feature footage from GoPro's "action cameras" and is planned for a launch later this year.
The channel's content will be sourced from user GoPro footage and professional video creators.
As for the nature of that content, Paradigm said it will cover "the wide range of sports and adventure content that GoPro is known for, including water, snow, air, and motorsports, as well as biking, skating, fishing, and some of the world's most breathtaking nature and lifestyle programming."
It was not clear what platforms the GoPro Channel would air on, nor were any estimates for costs or revenue provided.
Now what
GoPro footage is already popular on video sites; in its press release, Cinedigm said that such content has resulted in over 3 billion total views and garnered 10 million subscribers on Alphabet's YouTube. With those kinds of numbers, it makes sense to expand content dissemination into a proper streaming channel.
There's still much we need to know about the GoPro Channel's business model -- to what extent it'll be advertising-supported and how the ownership will work among the partners, among other things. Regardless, it feels like a sensible step in the right direction as far as its namesake company goes.
