GoPro Inc (NASDAQ: GPRO) Ink co-operation with Red Bull; Shares move higher
GoPro Inc and Red Bull have just entered into a multi-year content production deal. The global agreement covers content production, distribution, cross-promotion and product innovation. This information is clearly positive news for investors of sports cameras, as the stocks traded up 5.71% during the morning session. The deal with Red Bull follows the company’s March deal with Red Bull Racing to produce F1 racing content.
Commenting on the deal, Red Bull CEO Dietrich Mateschitz said: “As partners, Red Bull and GoPro will increase our joint international reach, the strength of our content and our ability to fascinate.”
Red Bull becomes an equity partner in GoPro
Under the terms of the exclusive agreement, Red Bull will become the equity partner of the action camera producer. The company will receive less than 1% of the company’s A-class shares. The action camera maker will become Red Bull’s imaging technology supplier for capturing immersive footage from Red Bull’s production and media events. Using high-definition video cameras and other recording products, the action camera manufacturer will appear at 1,800 Red Bull events in over 100 countries. The company will record videos with its cameras, Karma Drones and virtual reality equipment.
“A first-person perspective, breathtaking images and cutting-edge photography are the hallmarks of every story told in Red Bull’s production and live broadcast portfolio,” added Mateschitz.
GoPro Inc and Red will share the content rights in co-productions and the content will be distributed through their digital distribution networks including The GoPro Channel, Red Bull TV, Red Bull.com, and Red Bull Content Pool.
“Red Bull’s global scale and performance is something admirable. This partnership is very strategic for GoPro, “GoPro founder and CEO Nicholas Woodman said in a statement. “We share the same vision… inspiring the world to live a bigger life. Although we have been working closely together for many years, as official partners, we will be able to help each other more effectively to achieve our shared vision and scale our businesses. GoPro and Red Bull as a match are as good as they get.
GoPro and Virtual Reality
The action camera producer wants to become a leader in the virtual reality (VR) market, but may face competition from Google. In April, the action camera maker launched its own website, which is not available on YouTube, for VR videos as Google plans to make Jump and YouTube 360 available to more camera makers. An action camera maker may lose an edge as a “VR leader” on YouTube, according to an article in Motley the fool.
CEO Nick Woodman called GoPro VR “a place for users to upload and share their own VR content” in a conference call last quarter, and claimed to represent “one of the most versatile platforms for capturing, combining, sharing and enjoying VR content”. Woodman also claimed that the updated VR app “further strengthens the company’s position as a leader in virtual reality.”
In other news, GoPro Inc. is gearing up for launch Hero 5. Recent efforts to clean up channels’ existing inventory seem to be setting the stage for the same as on FBN.