Please ensure Javascript is enabled for purposes of website accessibility

GoPro Inc. Wants to Put Cameras in Everything

By Leo Sun - Apr 16, 2016 at 12:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The action camera maker has revealed a developer program with over 100 partners.

GoPro (GPRO -1.92%) recently unveiled the "GoPro Developer Program" at a press event in San Francisco. The program enables developers to connect their third-party devices and mobile apps to GoPro cameras and create custom housing and mounts, paving the way for integrating its cameras into connected cars, toys, and other gadgets. The program has been quietly operating for over a year, and currently includes over 100 partners.

Image source: GoPro.

In a press release, GoPro CEO Nick Woodman called the program "a way for us to celebrate the innovative work of our developer community and more importantly, help enable what comes next." Let's check out what some of GoPro's partners have done so far, and whether or not these partnerships will boost sales of its action cameras.

Meet the developers
At the launch event, GoPro showcased products from 34 of its partners. Notable ones mentioned in GoPro's press release include BMW (BMWYY 2.45%), Mattel (MAT -6.06%), Telefonica (TEF -0.20%), and Timecode Systems.

BMW integrated video from GoPro cameras into its M-Laptimer app, which times laps and records car telemetry, speed, and location data. The app, which was launched in 2013, is designed for enthusiasts driving their cars in controlled environments. Mattel is integrating "child-friendly" GoPro-compatible camera housing and mounts into Fisher-Price's Jumperoo, Walker, and Gym exercise products for young children. GoPro states that the cameras will help parents capture "amazing milestones in their child's early years from a unique perspective."

Telefonica integrated GoPro support into its Xtreamr Mobile App, which enables users to live stream video to other people by sharing a link. The partnership closely resembles GoPro's recent deal with Twitter's (TWTR 1.19%) Periscope, which enables users to seamlessly swap between smartphone and action camera views while broadcasting. Timecode Systems' SyncBac Pro clips to the back of a Hero 4 to generate "frame-accurate time code" which can be integrated into larger pro camera setups.

Fisher-Price's Jumperoo (L) and Timecode Systems' SyncBac Pro (R) Image source: Company websites.

But will this boost camera sales?
Securing over 100 partners in just over a year is impressive, but it doesn't guarantee that GoPro's camera sales will improve. BMW's app, for example, is designed for a niche group of drivers -- who might already use GoPro cameras as dash cams -- instead of mainstream customers. Fisher-Price's addition of action cameras to its "activity walkers" is interesting, but "GoPro-compatible" housing and mounts also work with a wide variety of cheaper cameras. Therefore, parents who don't want to spend $200 to $500 on a GoPro device could simply buy a cheaper camera.

Telefonica's GoPro integration in Xtreamr suffers from the same problem as its Periscope integration -- only GoPro's core customer base of outdoor enthusiasts will likely broadcast live streams on action cameras. Other users will probably use their smartphone cameras instead. The Timecode partnership might be interesting if GoPro cameras are used more in filmmaking, but only a few projects have ever used them for more than a few POV shots.

These four partnerships don't solve GoPro's lack of a moat against cheaper rivals and its inability to reach mainstream consumers. More interesting partnerships might emerge in the future, but they must be aimed at convincing mainstream consumers to buy GoPro cameras. Unfortunately, many of those consumers still don't see a point of owning both a high-end smartphone and a premium action camera.

Quality trumps quantity in partnerships
GoPro often forges impressive-sounding partnerships but fails to realize their full potential. Two years ago, it partnered with BMW and Mini in 2014 to synchronize its cameras to infotainment systems and iPhones. Last year, it signed a similar deal with Toyota to install GoPro mounts on its trucks. But GoPro didn't follow up on either deal to aggressively expand into the dedicated dash cam market. It also launched video apps across various gaming consoles and set-top boxes, but never explained how doing so would accomplish its goal of growing as a "media entity."

GoPro has pulled all these partnerships together with its Developer Program, but there's no guarantee that any of them will blossom and generate more meaningful sales of its action cameras. More importantly, the program hasn't visibly boosted sales despite being active for over a year. GoPro's sales only rose 16% in 2015, compared to 41% growth in 2014. Analysts still expect sales to fall 15% this year due to sluggish demand for action cameras and questionable demand for its upcoming drones.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GoPro, Inc. Stock Quote
GoPro, Inc.
GPRO
$6.66 (-1.92%) $0.13
Toyota Motor Corporation Stock Quote
Toyota Motor Corporation
TM
$155.89 (0.26%) $0.41
Telefónica, S.A. Stock Quote
Telefónica, S.A.
TEF
$4.91 (-0.20%) $0.01
Mattel, Inc. Stock Quote
Mattel, Inc.
MAT
$23.25 (-6.06%) $-1.50
Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
BMWYY
$27.59 (2.45%) $0.66
Twitter, Inc. Stock Quote
Twitter, Inc.
TWTR
$37.29 (1.19%) $0.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.