EXCLUSIVE: Red Bull Threatened Go Pro With ‘Own action camera’ Prior To Cutting Deal
Drink makers who compete with Red Bull, for a share of the energy drinks market, are tipped to impact sales of Go Pro after arch rival Red Bull tipped money into the struggling action camera Company, after a head on spat with the camera maker.
According to sources with inside knowledge of the deal, Red Bull told Go Pro who are haemorrhaging sales that they were set to take Go Pro head on with the production of their own Red Bull Action camera.
The Austrian energy drinks Company were of the belief that it was Red Bull, who had made Go Pro famous, because of their multibillion dollar investment into Motorsport, action adventure video’s shot on Go Pro cameras.
Red Bull management who in the past had approached Go Pro about an investment in the Company but had been knocked back, knew that Go Pro were struggling and needed capital to develop new cameras including a 360-degree action camera similar to the new 360fly model.
A deal was eventually ironed out and shortly after the deal was announced shares of GoPro climbed 5.4%.
GoPro’s shares have fallen 82 percent in the past year as the company wrestles with weak demand for its helmet- and body-mounted cameras.
The new deal that is wrapped around the Red Bull investment makes GoPro the official point-of-view camera provider for Red Bull’s events and videos.
The two companies will produce content shown across both of their distribution networks and the deal gives Red Bull equity in GoPro.
Now insiders are tipping that brands such of Mother, V, Monster and Rock Star who are heavily involved in action sports and who invest millions into sponsoring action sports personalities, will stop their brand hero’s from using Go Pro cameras.
Instead they will turn to 360-degree action video shot on products like the new 4K 360fly camera which was launched in Australia this week claim industry observers.
Earlier this week Peter Adderton the global CEO of 360fly in an exclusive interview with ChannelNews said that the believed that Go Pro management had not “Properly thought through” the ramifications of the deal as several Red Bull competitors in the Energy drinks market were big investors in the making of extreme sports video’s wrapped around their brands.
GoPro CEO Nick Woodman has said that Red Bull’s stake in the company was under 1 percent.
The Austrian drinks company often shows its often-raw and edgy extreme sports videos through apps on the Apple TV, YouTube, Microsoft’s Xbox and Sony’s Playstation.
“Historically, a ton of this stuff has probably already been filmed using GoPro cameras. My guess is we’ll see more GoPro logos in those videos,” said Dougherty & Company analyst Charles Anderson, who has a “neutral” rating on GoPro’s stock.
Demand for GoPro’s cameras has been declining as rivals such as fly 360 come to market with the next generation in 4K 360-degree cameras that take the shooting of extreme action video to a new level.
At stores such as Harvey Norman, JB Hi Fi and in the specialist camera Channel the Hero Session camera which was released last year did not sell well resulting in the product being discounted out quickly in an effort to shift stock.
GoPro has yet to launch a new version of its higher-end Hero4 device released in 2014.
“They need a refresh badly. It’s as if Apple went a year without a new iPhone,” Anderson said.