GoPro have announced a plan to investors to bring out a full range of cameras, from $199 to $599, and helmet cameras, to help grow the action camera market.
GoPro created the market they still dominate, action cameras, but in recent years they've made some missteps – notably the Karma drone, but perhaps more financially disastrously into media, establishing its own cable TV station.
In yesterday's earnings call, though, CEO Nick Woodman was able to share positive news – that the company had experienced year-over-year retail channel and unit sell-through growth.
GoPro has made a number of strategy changes with the overall goal of increasing the 'TAM' (Total Addressable Market), which means the number of people they can sell their cameras to. The worry, for GoPro, is only a finite number of people want action cameras. In fact when they were the only significant brand in the space the TAM was the key limit on their growth and a big problem.
GoPro also faced an awkward set of numbers because it had previously discounted the cameras when bought directly from GoPro with subscriptions, and this upset other retailers. They, in turn, devoted less store space to GoPro, which has helped open the door to competitors like the DJI Osmo Action 4 and Insta360 Ace Pro (at the high end) and cheaper alternatives.
All of which combined to "lower-than-expected sell-through of our $249 Hero10 Black product, which we did not discount during Q4" said Woodman.
The long and the short of this is that GoPro (finally) think the solution might be a range of cameras with different features and price points rather than, say, a cable TV channel! In Nick Woodman's words:
"As we begin 2024 and look to the greater long-term opportunity for GoPro, we believe it's essential that we significantly scale the number of products we sell to serve more consumers in more categories and markets. Our research identifies several growth opportunities where GoPro can extend our market leadership...
"We plan to launch four new camera SKUs, giving us a lineup of cutting-edge, industry-leading cameras ranging in price from a volume-driving $199 up to $599, with more planned for 2025."
The other part of this – which Woodman does acknowledge might have some canabilization of the existing market – is the idea of a helmet with built-in camera, which will will follow the company's acquisition of Forcite Helmet Systems, an Australian high-tech motorcycle helmet company last month. There will be Go-Pro branded helmets in 2025.
Woodman also noted the arrival of the Quik desktop app before ending the planned portion by saying "It's good to be on the build again."