GoPro Inc (NASDAQ:GPRO) has already said that it plans to create a media platform as an additional source of revenue. But until now, the company’s efforts and specifics towards this goal were unclear. Now GoPro has appointed Zander Lurie as its Senior Vice-President of media, effective immediately. Lurie will report directly to the company’s President Tony Bates.
Lurie to build out GoPro’s content infrastructure
With a solid background in the Internet and digital media platforms, Lurie will look after the creation, curation and distribution of GoPro content. Before joining the action camera maker, Lurie served as EVP at Guggenheim Digital Media. He has also worked as the SVP of Strategic Development at CBS Corporation (NYSE:CBS).
Stifel analyst Jim Duffy said in a research note that Lurie can “serve as a valued dedicated steward of investments” in building out the San Mateo-based company’s media infrastructure and relationships. The research firm believes GoPro will add many more channels, content libraries and production templates to monetize its content through advertising and licensing revenue. Stifel has a Hold rating on the stock.
GoPro has immense potential in media business
At its third-quarter earnings call, the action camera maker said that monthly views on its YouTube channel skyrocketed 99% to 72 million. Total minutes watched increased by 133% from last year. From September to October, content submission jumped 160%, mainly driven by the launch of the new Hero 4. The company said its Xbox channel received more than 6.5 million views during the third quarter.
It shows that users and viewers are interested in sharing and watching GoPro videos. Media could open a new revenue stream. The company recently updated its desktop and mobile apps, adding new features such as HiLight Tag and Flux. However, HTC and Polaroid have launched their own action cameras to challenge GoPro in the market.
GoPro shares fell 1.25% to $81.24 at 11:20 AM EST on Wednesday. The stock has gained 159% since the company’s IPO in June.