Why GoPro stock was a winner on Wednesday

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what happened

Content is king, as the old maxim goes, and investors clearly took that to heart GoPro (GPRO 2.59%) Stock on Wednesday. Thanks to the announcement of a new content deal, the digital camera maker’s share price rose nearly 3% on the day.

so what

In collaboration with GoPro, the streaming video specialist Synedigm (CIDM -6.63%) And content producer Roundtable Entertainment is developing the GoPro Channel, Cinedigm announced Wednesday morning. As it almost goes without saying, the channel will prominently feature footage from GoPro’s “action cameras” and is planned to launch later this year.

Channel content will be sourced from user GoPro footage and professional video makers.

As for the nature of that content, Paradigm says it will cover “the broad range of sports and adventure content that GoPro is known for, water, snow, air and motorsports, as well as biking, skating, fishing and some of the world’s most breathtaking nature and lifestyle programming.”

It was not clear which platform the GoPro channel would broadcast on, nor was any estimate given for costs or revenue.

what now

GoPro footage is already popular on video sites; In its press release, Cinedigm said that such content has totaled more than 3 billion views and gained 10 million subscribers. the alphabetWith YouTube’s numbers like these, it makes sense to expand content distribution to a proper streaming channel.

We still need to know a lot about GoPro Channel’s business model — how ad-supported it will be and how ownership will work between partners, among other things. Regardless, it seems like a smart step in the right direction as far as its naming convention goes.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has the post and recommends Alphabet. Motley Fool has a revealing policy.


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