STUDENT

GoPro:
CASE
Be a hero
STUDY

Tapobrata Das Roy, Erik English, Alison Erlwanger,

Katie Hallaran, Lisa Holub, and Kathleen Yaworsky

April 2015
GoPro: Be a HERO

Team  Wangari  Maathai:  Tapobrata  Das  Roy,  Erik  English,  Alison  Erlwanger,  
Katie  Hallaran,  Lisa  Holub,  and  Kathleen  Yaworsky

“We  recognized  we  are  as  much  in  the  content  enabling  business  as  we  are  in  the  consumer  
products  business.”  

“If  I'm  a  content  creator,  and  I  get  recognition  for  my  work,  that's  going  to  motivate  me  to  spend  
even  more  time  on  my  next  production  and  make  it  even  better.”
-­‐Nick  Woodman,  Founder  and  CEO  of  GoPro1  2

Nick   Woodman,   founder   and   CEO   of   GoPro,   was   sipping   a   rum   cannonball   out   of   a   hollowed-­‐out  
coconut   shell   on   a   rural   beach   in   Tobago.   As   his   surfboard   rested   against   the   nearby   palm   trees  
overloaded   with   coconuts,   he   took   a   deep   breath   of   the   ocean   air   and   wondered,   “Am   I   in   over   my  
head?”  He  had  recently  made  waves  by  announcing  the  GoPro  channel’s  partnership  with  Roku,  but  was  
aware   that   their   shift   from   an   action   camera   producer   to   a   media   company   would   not   be   easy.   They  
would   have   to   deal   with   a   new   group   of   major   media   competitors   and   entertain   the   possibility   of  
creating   partnerships   with   former   competitors.   They   had   also   encountered   recent   setbacks   with   more  
delays  to  the  release  of  their  new  camera,  the  HERO5.3

Ultimately,   GoPro   may   struggle   to   stay   true   to   its   core   and   its   customer   base   while   the   entire   landscape  
of   the   media,   Internet,   and   television   shifts   underneath   its   feet.   As   GoPro’s   footprint   expands   from  
camera  maker  to  a  more  vertically  integrated  media  company,  spanning  the  entire  media  process,  how  
will   they   account   for   new   competitors   like   Netflix,   HBOGo,   and   other   video   on   demand   (VOD)  
companies?   How   will   their   relationship   with   Apple,   who   may   begin   making   GoPro-­‐like   action   cameras  
but  also  provides  AppleTV  to  showcase  VOD,  change?  What  steps  can  GoPro  take  to  ensure  that  Apple  
becomes  a  partner  rather  than  a  direct  competitor?  How  do  they  stay  true  to  their  core  community  of  
video   makers   while   attracting   new   video   partnerships   that   appeal   to   a   wider   audience?   With   his   feet  
dug  into  the  sand,  ready  to  order  a  piña  colada,  Woodman  had  much  to  think  about,  and  many  decisions  
to  make.

Early  Beginnings

Nick  Woodman  was  on  a  surf  trip  in  Australia  in  2002  when  he  first  came  up  with  the  idea  for  GoPro.4  At  
the   time,   surfing   was   filmed   from   the   shore   or   from   a   jet   ski,   far   from   the   action.   Most   other   action  
sports,   like   skateboarding,   allowed   a   camera   operator   to   film   from   relatively   close   by,   but   surfing   was  
different.   To   follow   the   surfer   on   the   go,   the   cameras   had   to   be   physically   affixed   to   another   person,  
either  by  design  or  do-­‐it-­‐yourself  ingenuity,  for  them  to  record  videos  and  take  pictures  (Exhibits  A  and  
B).5   Professional   surfers   and   high-­‐income   amateur   surfers   could   have   cinematographers   take   their  
videos  and  pictures  with  high-­‐quality  sports  cameras  from  helicopters  or  boats  (Exhibits  A  and  B).  High-­‐
quality   sports   cameras,   however,   were   out   of   the   price   range   of   the   average   surfer,   who   often   used  
lower   quality   cameras   carried   by   a   friend   near   them   in   the   water.   The   point-­‐of-­‐view   nature   of   the  
cameras   required   another   person   to   be   present,   often   placing   the   recorder   in   more   precarious  
conditions  than  the  subject  of  the  video,  and  ultimately  limiting  the  range  of  shots  that  could  be  taken.    

The   rough   conditions   and   speed   under   which   sports   videos   and   pictures   are   generally   taken   necessitate  
technical  specifications  that  are  not  standard  in  all  cameras  and  explain,  to  some  extent,  the  higher  cost  
of   traditional   sports   cameras.   The   cameras   need   to   be   portable,   durable,   equipped   with   a   shorter  
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GoPro: Be a HERO

shutter   lag   and   shutter   speed,   and   in   the   case   of   surfing,   waterproof.6   Woodman’s   initial   idea   was   to  
create  a  simple  wrist  strap  for  disposable  cameras.  After  two  years  of  tinkering,  Woodman  came  to  the  
realization   that   the   legal   and   logistical   hurdles   associated   with   partnering   with   existing   camera  
companies   meant   that   manufacturing   his   own   camera   was   his   best   bet.   In   2005   Woodman   had   a  
market-­‐ready  prototype,  the  HERO  35MM,  which  took  still  photographs  only;  he  pitched  it  on  the  Home  
Shopping  Network  in  20057  (Exhibit  C).8

The  first  iteration  of  the  GoPro  camera  on  the  Home  Shopping  Network  was  a  far  cry  from  the  current  
model:   a   sleek,   lightweight   design   that   films   in   high   definition   and   is   a   nearly   ubiquitous   sight   for   any  
outdoor  enthusiast  (Exhibit  D  and  E).  GoPro’s  online  presence  is  equally  impressive;  in  2014  alone,  users  
of  this  model  uploaded  more  than  3.9  years  of  content  to  YouTube,  featuring  “GoPro”  in  the  title.9  The  
explosion   in   user-­‐generated   content   stemmed   from   a   realization   that   Woodman   made   from   another  
high-­‐action   sport   he   was   passionate   about:   auto   racing.   Not   wanting   to   rent   the   traditional   outward  
facing  camera  offered  at  his  racetrack,  Woodman  impulsively  strapped  a  GoPro  to  the  hood  of  the  car  
positioned  to  face  him  directly,  and  immediately  realized  the  untapped  potential  afforded  by  the  new  
perspective.10     With   a   digital   camera   that   faced   the   user,   allowing   them   to   be   featured   as   the   subject   of  
the  video,  GoPro  was  able  to  create  a  new  way  to  experience  action  sports  and  redesigned  its  product  
line   around   this   core   insight.   GoPro’s   more   recent   list   of   products   showcase   the   range   of   technical  
specifications  the  company  prioritizes  (Exhibit  D).    

Originally   an   action   camera   company,   GoPro   now   also   offers   a   social   media   platform   to   share   the  
content   created   by   its   users,   which   ultimately   guided   their   partnership   with   Roku.   The   move   to   Roku  
was   aligned   with   the   growing   trend   away   from   bundled   cable   packages   toward   VOD   channels,   which  
require   a   steady   stream   of   fresh   content.   The   key   challenges   GoPro   faces   are   major   shifts   in  
entertainment  consumption  patterns  and  social  interactions.  In  order  to  be  successful,  the  company  is  
trying  to  predict  the  future  evolution  of  multimedia.  

Nick  Woodman  says  in  jest  that  GoPro  “was  a  10  year  overnight  success.”11   12  It  is  easy  to  see  his  point,  
given   that   at   the   beginning   of   the   decade,   he   started   his   venture   by   borrowing   $260,000   from   his  
parents  as  initial  capital.13    Prior  to  starting  GoPro,  Nick  had  already  started  two  failed  companies.  The  
first  was  EmpowerAll.com,  which  sold  electronics  at  a  small  markup,  and  failed  immediately.  The  other  
was  Funbug.com,14  which  was  “a  gaming  and  marketing  platform  that  gave  users  the  chance  to  win  cash  
prizes.”15  Even  though  that  business  also  failed,  Woodman  did  manage  to  raise  $3.9  million  in  funding  
for  FunBug.  Both  businesses  combined  social  and  technology  functions,  and  the  trial-­‐and-­‐error  exercise  
helped  Woodman  realize  that  some  combination  of  the  two  held  the  magic  formula.  

Between   2004,   when   Woodman   sold   his   first   camera,   and   2011,   when   the   company   sought   its   first  
round   of   venture   financing,   it   underwent   a   series   of   strategic   changes   to   increase   sales.   The   moves  
included:   the   introduction   of   video   (through  Digital   HERO)   and   the   wide-­‐angle   lens,   marketing   GoPro   as  
mountable  devices,  and  entering  the  high-­‐definition  market  through  the  introduction  of  HERO  HD.16  A  
stroke   of   good   luck   accompanied   the   series   of   smart   moves   and   made   for   a   winning   combination.   In  
2011,   Cisco   Systems   Inc.,   unexpectedly   discontinued   their   Flip   Cam,   the   market   leader   at   the   time.17  
That   led   to   Best   Buy   scrambling   to   fill   shelf   space   and   deciding   to   make   a   bet   on   GoPro,   which   at   the  
time  was  a  ten-­‐person  company  that  happened  to  be  in  the  right  place  at  the  right  time.18  Since  2004,  
GoPro  has  doubled  its  revenue  every  year  and  is  currently  worth  over  $2.5  billion.19

 
 
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GoPro: Be a HERO

Going  Public

In   2011,   Woodman   announced   that   GoPro   was   open   for   funding   from   five   venture   capital   firms  
including   Riverwood   Capital,   Steamboat   Ventures,   and   Disney’s   venture   investment   arm.   The   total  
investment   was   estimated   to   amount   to   $88   million.20   The   company   continued   its   yearly   practice   of  
refreshing  product  lines  after  the  first  round  of  funding,  ending  2012  with  a  sales  figure  of  $521  million  
from   2.3   million   cameras   sold.   In   2012,   GoPro   attracted   investments   from   the   Chinese   electronics  
manufacturer   Hon   Hai   Precision   Industry,   also   known   as   Foxconn.   Foxconn   made   a   $200   million  
investment   for   an   8.88%   stake   in   the   company;   Woodman   kept   45   percent.21   The   investment   is  
significant  because  Foxconn  also  manufacturers  for  Apple,  but  to  date  has  never  invested  in  any  Apple  
products.22  They  see  GoPro  as  having  the  potential  to  make  huge  strides  in  markets  they  have  not  yet  
explored.  GoPro’s  valuation  was  then  pegged  at  $2.25  billion,  making  Woodman’s  net  worth  $1.3  billion.

In  2014,  the  company  announced  that  it  aimed  to  raise  $427  million  from  an  initial  public  offering.  The  
funds   from   the   IPO   were   earmarked   to   repay   a   loan,   develop   specialty   hardware,   and   build   a   content  
management  system  intended  for  the  creation  of  a  media  entity  to  sell  user-­‐generated  content—a  key  
strategic   objective   for   the   company’s   growth.   GoPro   targeted   selling   17.8   million   shares   at   an   estimated  
price   of   $21   to   $24   per   share.   The   company   showed   profits   in   the   filings   for   every   year   since   2011,  
including   more   than   $60   million   in   2013.23   However,   the   stock   price   has   experienced   ups   and   downs  
since  the  IPO.  For  example,  in  September  2014,  concerns  about  the  company’s  valuation  led  JP  Morgan  
to  downgrade  GoPro’s  stock  from  “Overweight”  to  “Neutral.”  

Only  one  other  consumer  electronics  company  with  a  single  product  line  had  been  able  to  go  public  in  
the  last  few  years.24  The  consumer  electronics  market  has  been  largely  dominated  by  major  smartphone  
companies  with  significant  capital  and  technological  expertise,  making  it  difficult  for  smaller  players  to  
enter  the  market.  This  is  where  GoPro  significantly  differentiates  itself  in  the  market.  In  2011,  GoPro’s  
Facebook  fan  base  exploded  from  50,000  viewers  to  1.3  million  viewers,  in  stark  contrast  to  traditional  
competition   like   Canon   USA,   which   had   135,000   followers,   and   Panasonic   USA,   which   had   134,000  
followers.25  It  was  evident  that  GoPro  was  more  than  a  consumer  electronics  company;  it  was  selling  the  
lifestyle  that  came  with  using  a  camera  that  real  “doers”  wear,  and  most  importantly,  it  was  building  a  
community   of   loyal   followers   and   contributors   by   selling   an   experience   through   dynamic,   authentic,  
user-­‐generated  content.

GoPro  HEROs:  The  Core  Community  

GoPro  is  hailed  as  a  leader  in  breakthrough  marketing  strategies  because  of  their  deft  management  of  
user-­‐generated  content  to  engage  current  and  potential  customers.  While  GoPro  doubled  its  net  income  
between   2010   and   2011   to   $24.6   million,   it   spent   only   $50,000   more   that   year   on   marketing   costs.  
Similarly,   in   2013,   GoPro   increased   its   year-­‐to-­‐year   marketing   costs   by   $41,000   and   brought   in   $28  
million  more  in  net  income.26  

GoPro  has  tapped  into  something  incredibly  powerful.  A  recent  Forrester  study  revealed  that  48  percent  
of   users   trust   the   words,   pictures,   and   videos   created   by   other   customers,   as   compared   to   only   14  
percent  that  trust  ads  created  by  the  brands  themselves.27  Additionally,  Millennials  are  now  spending  30  
percent   of   their   total   media   consumption   on   content   created   by   their   peers.28   By   harnessing   this  
powerful   trend,   GoPro   benefits   from   material   created   directly   by   its   users,   available   for   them   to   turn  
around  and  use  for  marketing  purposes.  The  potential  migration  from  YouTube  toward  Roku  begs  the  
question   of   pricing:   what   business   model   will   attract   new   customers   while   ensuring   continued   loyalty  
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GoPro: Be a HERO

from  current  fans  accustomed  to  watching  online  for  free?  Will  content  be  available  on  both  channels?  
If   so,   how   should   they   differentiate?   Will   they   have   to   compensate   users   who   upload   content,   if  
displayed  for  profit  on  Roku?  

From   the   first   GoPro   video   posted   to   YouTube,   which   featured   a   BASE   jumper   leaping   off   a   cliff   and  
spinning  the  camera  away  from  his  face  to  the  huge  drop  below,29  the  company  understood  the  power  
of   a   strategically   symbiotic   relationship   with   the   streaming   video   website.30   In   order   to   build   up   an  
arsenal  of  content  to  curate  for  YouTube  and  their  other  social  media  channels,  the  company  regularly  
hands   over   their   cameras   to   famous   athletes   who   return   with   breathtaking   footage   from   all   over   he  
world.   GoPro   also   benefits   from   the   general   public,   who   promote   the   camera   with   their   amateur  
content,  posting  their  latest  adventures  to  their  own  social  media  streams.31  The  GoPro  channel  remains  
true  to  their  core  community  of  enthusiasts  by  awarding  them  “achievements”  when  they  watch  videos;  
they   can   earn   up   to   ten   different   badges   based   on   the   number   and   frequency   of   videos   they’ve  
watched.32   GoPro   also   promotes   “video   of   the   day”   and   “photo   of   the   day”   shout-­‐outs   on   its   Twitter  
page.

This   ingenious   and   cost-­‐effective   marketing   ploy   wins   GoPro   sustained   attention   on   YouTube,   Twitter,  
Facebook,  and  the  GoPro  site,  which  transforms  fans  into  brand  advocates.  The  GoPro  YouTube  channel  
has   over   two   million   followers   and   provides   additional   exposure   through   its   curated,   user-­‐generated  
content,   with   most   videos   garnering   well   over   one   million   views   (Exhibits   G,   H,   and   I).   By   including   in   its  
marketing   strategy   both   expert   material   from   professional   athletes   and   celebrities,   as   well   as  
extraordinary  shots  and  videos  from  the  wider  public,  GoPro  is  able  to  continually  appeal  to  its  core  and  
potential   markets   with   a   fresh   mix   of   curated   and   uncut   content   each   day.   Despite   the   marketing   fervor  
for   user-­‐generated   content,   there   are   risks   to   brand   reputation   from   decentralizing   control,   as   well   as  
the  possibility  that  business  could  falter  if  users  lose  interest  or  if  GoPro  deviates  from  its  core.  On  the  
other   hand,   maintaining   an   iron   grip   on   branded   material   can   equally   alienate   fans   and   compromise  
authenticity   and   engagement.   Their   success   thus   far   illustrates   that   GoPro   has   managed   to   maintain  
balance  in  its  approach  to  content.33

The  GoPro  marketing  and  design  teams  have  worked  closely  to  ensure  that  the  physical  characteristics  
of   the   camera   make   it   easy   and   intuitive   for   users,   from   the   casing   and   mounting   hardware   to   the  
lightweight,   durable   body   of   the   camera.34   While   the   product   itself   is   best-­‐in-­‐class,   the   marketing  
strategy   has   propelled   it   from   a   niche   brand   for   extreme   athletes   to   a   widely   recognizable   “purpose  
brand,”  as  Clay  Christensen  coined.35    GoPro  has  done  an  exceptional  job  of  building  its  brand  around  
the   “job   to   be   done”—capturing   first-­‐hand   experiences   to   be   consumed   and   enjoyed   by   a   wider  
audience.  
 
Since   its   YouTube   debut,   strategic   partnerships   have   been   central   to   GoPro’s   sustained   growth,  
leveraging   its   product   and   platform   to   expand   its   market   through   cross   promotions.   One   current  
example   of   this   is   a   partnership   with   Universal   Studios   promoting   the   latest   Fast   and   Furious   film  
through   a   contest   that   solicits   stunt   footage;   the   grand   prize   is   an   all-­‐expenses-­‐paid   trip   to   one   of  
America's  top  stunt  driving  schools.36  

Shifting  Tides

By  moving  to  create  its  own  channel  and  partnering  with  Roku,  GoPro  enters  a  new   market  and  must  
reevaluate   its   competitive   landscape   on   multiple   fronts.   Roku   devices   are   easy   to   use   and   make   VOD  
more   accessible,   which   leverages   the   shift   in   consumer   behavior   away   from   traditional,   bundled  
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GoPro: Be a HERO

television   subscriptions   in   favor   of   internet-­‐based   entertainment.37   By   launching   this   partnership,   GoPro  

is   betting   that   the   VOD   model   will   become   more   prevalent,   and   that   unbundled   cable   services   like  
HBOGo   and   Netflix   will   replace   the   traditional   cable   package   model.38   They   must   also   believe   that  
viewers   who   switch   on   their   Roku   will   select   the   GoPro   channel   over   Netflix.   It   remains   to   be   seen  
whether   GoPro   and   other   VOD   services   would   compete   directly,   or   carve   out   niche   markets   based   on  
distinct  usage  patterns.  For  example,  the  GoPro  channel  might  be  preferred  by  consumers  with  fifteen  
minutes  to  kill  but  not  enough  time  to  watch  an  episode  of  their  favorite  show.

GoPro’s  traditional  competitors  include  the  producers  of  other  popular  cameras  and  electronics,  such  as  
Sony,  Apple,  Polaroid,  and  Garmin.  A  summary  of  the  primary  strengths,  weaknesses,  opportunities,  and  
challenges  for  GoPro  and  its  current  competitors  can  be  found  in  Exhibit  F.  GoPro  enjoys  a  first-­‐mover  
advantage  in  action  camera  production,  to  the  extent  that  its  brand  is  synonymous  with  the  genre  itself,  
with   an   impeccable   reputation   for   quality.   However,   there   are   a   number   of   new   market   entrants  
offering   affordable,   high-­‐quality   cameras   that   could   potentially   erode   GoPro’s   market   share.   Notably,   in  
March   2015,   Chinese   company   Xiaomi   introduced   the   Yi   Action   Camera   with   specs   comparable   to   the  
HERO4,  but  priced  at  a  mere  $64,  drastically  lower  than  GoPro’s  $400  price  point.39  While  it  is  unclear  
whether  Xiaomi’s  camera  will  be  offered  outside  of  China  in  the  foreseeable  future,  the  availability  of  a  
cheaper  model  in  one  of  the  world’s  biggest  markets  may  foretell  a  need  for  GoPro  to  lower  its  price,  
ultimately  decreasing  its  revenues  and  profit  margin,  and  perhaps  increasing  the  strategic  appeal  for  it  
to  diversify  revenue  streams.

GoPro’s   pivot   towards   becoming   a   media   player   places   them   in   the   company   of   new   competitors   like  
VOD   suppliers   Netflix   and   HBOGo,   which   have   a   stranglehold   on   the   market.   HBO   also   recently  
unbundled  their  VOD  service  (HBO  Now)  from  their  subscription  television  channel,  perhaps  recognizing  
the  same  shift  in  viewing  habits  that  is  driving  Woodman  to  partner  with  Roku.    Currently,  HBO  Now  is  
only  available  on  Apple  devices,  which  highlights  another  challenge  to  GoPro’s  expansion.40  Apple  is  also  
well-­‐positioned  to  launch  a  GoPro-­‐style  channel  thanks  to  its  AppleTV  product.    
 
In   January   2015,   Apple,   whose   products   have   immense   consumer   loyalty,   was   granted   a   patent   for   a  
camera  that  can  be  used  as  both  a  hand-­‐held  and  mounted  device.41  Foxconn,  a  GoPro  investor,  is  also  a  
current   manufacturer   for   Apple,   which   creates   a   potential   conflict   of   interest   if   they   produce   cameras  
for  both  companies.42  News  of  this  patent—without  any  publicly  known  plans  to  manufacture—caused  
GoPro’s  shares  to  drop  by  13%  in  a  single  day.43  Apple’s  long  legacy  of  innovation  and  magnetic  brand  
could  pose  a  serious  threat  to  GoPro’s  market  share  in  the  event  that  it  does  release  an  action  camera.  If  
a  proprietary  “iCamera”  is  integrated  with  AppleTV,  Apple  could  pose  a  double  threat.    

Catching  the  Next  Wave

As   Woodman   finished   the   last   sips   of   his   rum   cannonball   and   hailed   a   waiter   for   his   piña   colada,   he  
contemplated  whether  making  the  transition  from  an  action  camera  manufacturer  to  a  media  company  
was   too   far   outside   GoPro’s   core   competencies.   If   GoPro   chooses   to   expand   from   a   camera  
manufacturer  to   a   media   company,   they   would   have   to   consider   with   which   partners   to   engage   beyond  
Roku   and   what   strategic   advantage   those   partners   would   offer   in   attracting   new   customers   and   viewers  
beyond  their  traditional  audience.  

 
 
 
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GoPro: Be a HERO

Exhibit  A:  Sports  Filming  Before  GoPro44  

Exhibit  B:  Mounted  Action  Sports  Cameras45  

 
 
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GoPro: Be a HERO

Exhibit  C:  Amazon  Listing  For  The  First  GoPro  Model,  The  GoPro  35MM  All  Season  Sports  Camera46

Exhibit  D:  The  Historical  Evolution  Of  GoPro  Cameras  

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GoPro: Be a HERO

Exhibit  E:  The  GoPro  HERO4  

 

 
 

 
 
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GoPro: Be a HERO

Exhibit  F:  GoPro  Camera  Competitor  Analysis47  48  49  

    Strengths   Weaknesses   Opportunities   Challenges  

Go-­‐Pro   1st-­‐mover  advantage;   High  price;  low   Premium  Hero4  Black   Maintain  market  
reputation  as  best   battery  life   positions  Hero4  Silver   leadership;  continue  
action  camera  brand   as  high  quality/good   to  offer  superior  
in  terms  of  image   value;  flexible  shooting   products;  appeal  to  
quality  and   modes  appeal  to  still   wider  audience  
diversity/functionality   photographers  too  
of  accessories    
Xiaomi   Offering  new  Yi   Currently  only   Capture  Chinese   No  known  plans  to  
Camera  with  similar   available  in   market;  potential  for   expand  outside  China  
specifications  to  Go-­‐ China   international  expansion  
Pro  Hero3  Silver  for   with  price  advantage  
only  $64  
Sony   Best  in  class  audio   Poor  functioning   Sony  HDR-­‐AS100V  at   Adapt  expertise  in  
quality;  better   surf  mount;   $250  is  $100  cheaper   electronics  to  extreme  
battery  life  than  Go-­‐ waterproof  only   than  Hero4  Silver;   outdoor  environments    
Pro   to  16  feet;   releasing  new  premium   more  consistently  
inconsistent   and  lower  price  models   across  products  
image  quality   with  revamped  specs    
Apple   Filed  patent  for  high-­‐ Proof  of  concept   Focus  on  battery  life,   Long-­‐term  market  
quality  camera  that   patent  only;  no   high  quality  and   play,  depends  partly  
can  be  used  in  hand-­‐ product   integration  with  other   on  success  of  Apple  
held  and  mounted   currently  in   Apple  products   Watch  
modes  and  remote   market  
control  via  Apple  
Watch;  brand  
stickiness    
Polaroid   Cube  is  cute,  simple,   Doesn't  meet   Position  as  "everyday"   Weak  current  demand  
affordable   durability  or   action  camera  to   for  non-­‐extreme  
performance   appeal  to  wider  market       action  camera    
requirements  for  
extreme  action  
camera  market  
Garmin   VIRB  Elite  offers   New  entrant  to   Impressive  first   Brand  strength  
second  best  image   camera  market   showing  with  potential   currently  lies  
quality  after  Go-­‐Pro   for  improvement   elsewhere  

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GoPro: Be a HERO

Exhibit  G:  Fifteen  Most  Viewed  GoPro  Videos  As  Of  March  30,  201550
  Video  Title   Min   Views   Rating  
1   GoPro  HERO3:  Almost  as  Epic  as…   5:08   37,459,978   4.93  
2   GoPro:  Fireman  Saves  Kitten   2:04   26,251,440   4.95  
3   GoPro:  Lions  -­‐  The  New  Endange…   14:43   25,823,602   4.95  
4   GoPro:  Backflip  Over  72ft  Cany…   2:04   24,143,927   4.94  
5   GoPro  HERO4:  The  Adventure  of  …   4:14   21,816,357   4.91  
6   The  HD  HERO2:  Almost  as  Rad  as…   5:12   21,564,623   4.95  
7   GoPro:  HERO3+  Black  Edition:  S…   4:35   17,378,387   4.92  
8   GoPro  HD:  Skateboard  Big  Air  w…   :31   12,770,303   4.73  
9   GoPro:  Director's  Cut  -­‐  Shark  …   8:08   9,831,789   4.81  
10   GoPro  2010  Highlights:  You  in  …   5:51   8,338,795   4.95  
11   GoPro:  Combing  Valparaiso's  Hi…   9:21   7,437,122   4.94  
12   GoPro:  Let  Me  Take  You  To  The  …   10:37   7,267,520   4.94  
13   GoPro:  The  Streets  of  Japan  in…   9:43   6,723,013   4.8  
14   GoPro  HD:  Avalanche  Cliff  Jump…   2:39   6,704,512   4.95  
15   GoPro  HD  HERO  Camera:  Crankwor…   1:29   6,666,008   4.95  

Exhibit  H:  GoPro  And  Red  Bull  YouTube  Subscribers  From  October  31,  2014  to  April  2,  2015  

4500000  
4000000  
3500000  
3000000  
2500000  
2000000  
1500000  
1000000  
500000  
0  
31-­‐Oct  

5-­‐Dec  
12-­‐Dec  
19-­‐Dec  
26-­‐Dec  
2-­‐Jan  
9-­‐Jan  

6-­‐Feb  
13-­‐Feb  
20-­‐Feb  
27-­‐Feb  

13-­‐Mar  
20-­‐Mar  
27-­‐Mar  
7-­‐Nov  

6-­‐Mar  
16-­‐Jan  
23-­‐Jan  
30-­‐Jan  
14-­‐Nov  
21-­‐Nov  
28-­‐Nov  

Red  Bull   GoPro  

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GoPro: Be a HERO

Exhibit I: Hourly Subscribers (Gain And Total)

Hourly  Subscribers  -­‐  Thursday  (4/2)  

Hour   Gain   Subs   Hour   Gain   Subs   Hour   Gain   Subs  
:00-­‐59   (End)   :00-­‐59   (End)   :00-­‐59   (End)  
12  am   105   2,915,772   8  am   59   2,916,468   4  pm   141   2,917,746  
1  am   72   2,915,844   9  am   142   2,916,610   5  pm   118   2,917,864  
2  am   73   2,915,917   10  am   132   2,916,742   6  pm   109   2,917,973  
3  am   90   2,916,007   11  am   146   2,916,888   7  pm   94   2,918,067  
4  am   91   2,916,098   12  pm   179   2,917,067   8  pm   90   2,918,157  
5  am   112   2,916,210   1  pm   209   2,917,276   9  pm   99   2,918,256  
6  am   86   2,916,296   2  pm   175   2,917,451   10  pm   92   2,918,348  
7  am   113   2,916,409   3  pm   154   2,917,605   11  pm   104   2,918,452  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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GoPro: Be a HERO

 
Exhibit  J:  Unaudited  Financial  Statements
Condensed  consolidated  balance  sheets

Assets          
 (In  thousands  US  dollars)   September  30,    2014     December  31,  2013    
       Current  assets:          
Cash  and  cash  equivalents   237,749   101,410  
Accounts  receivable,  net   94,563   122,669  
Inventory,  net   117,014   111,994  
Prepaid  expenses  and  other  current  assets   49,057   21,967  
Total  current  assets   498,383   358,040  
       Property  and  equipment,  net   40,339   32,111  
       Intangible  assets  and  goodwill   16,529   17,365  
       Other  long-­‐term  assets   33,807   32,155  
Total  assets   589,058   439,671  

Liabilities,  Redeemable  Convertible  Preferred  Stock  and  Stockholders'  Equity  (deficit)  

           Current  liabilities:          
Accounts  payable   112,270     126,423    
Accrued  liabilities   99,928     86,391    
Deferred  revenue   7,996     7,781    
Income  taxes  payable   4,795     19,702    
Current  portion  of  long-­‐term  debt   0     60,297    
       Total  current  liabilities   224,989     300,594    
       Long-­‐term  debt,  less  current  portion   0     53,315    
       Other  long-­‐term  liabilities   13,408     13,930    
Total  liabilities   238,397     367,839    
Total  stockholders\  equity  (deficit)   350,661     -­‐5,366    
Total  liabilities,  redeemable  convertible  preferred  
stock  and  stockholders\  equity  (deficit)   589,058     439,671    
Source:  GoPro  Form  10Q  (Quarterly  Report,  Filed  11/04/14  for  the  Period  Ending  09/30/14).  EdgarOnline.  

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GoPro: Be a HERO

1
 Woodman,  Nick.  BrainyQuote.  accessed  April  3,  2015.  
http://www.brainyquote.com/quotes/authors/n/nick_woodman.html#JAGS0VBs9ul6roA0.99  
2
 Brown,  Graham.  10  Quotes  From  Industry  Leaders  and  Gurus  On  The  Future  Of  Marketing.  Accessed  March  30,  2015.  
http://image.slidesharecdn.com/slideshare-­‐leadership-­‐150121223740-­‐conversion-­‐gate02/95/grahamdbrown-­‐brand-­‐
leadership-­‐2015-­‐10-­‐quotes-­‐from-­‐industry-­‐leaders-­‐and-­‐gurus-­‐on-­‐the-­‐future-­‐of-­‐marketing-­‐26-­‐638.jpg?cb=1422856302  
3
 Morris,  Christopher.  GoPro  Hero  5:  What  To  Expect?  Value  Walk.    March  1,  2015.  Accessed  March  23,  2015,  
http://www.valuewalk.com/2015/03/gopro-­‐HERO-­‐5-­‐what-­‐to-­‐expect/    
4
 History  of  the  GoPro.  The  Cam  Authority.  Accessed  March  27,  2015,  http://www.goprobuyersguide.com/story    
5
 Wolff-­‐Mann,  Ethan.  Old  School  GoPro  Camera  Rigs  Were  Way  More  Badass.  Supercompressor.  April  15,  2014.  Accessed  April  
1,  2015,  http://www.supercompressor.com/gear/actioncams-­‐before-­‐gopro-­‐mounted-­‐cameras    
6
 Hendricks,  Gary.  Learn  How  to  Capture  Action  Shots.  Picture  Correct.  Accessed  March  24,  2015,    
http://photo.net/learn/sports/overview?;  Miracle,  Rob.  Sports  Photography.  Photo.net.  June  1999.  Accessed  March  15,  2015,  
http://www.picturecorrect.com/tips/learn-­‐how-­‐to-­‐capture-­‐action-­‐shots/      
7
 Foster,  Tom.  The  GoPro  Army.  Inc.  April  2015.  Accesed  April  1,  2015,  ttp://www.inc.com/magazine/201202/the-­‐gopro-­‐
army.html    
8
 Nick  Woodman  on  QVC  (2005).  Forbes  Channel  on  Youtube.  February  26,  2013.  Accessed  March  31,  2015,  
https://www.youtube.com/watch?v=i89qZNFf6_E&t=233    
9
 Q4  2014  Investor  Presentation,  GoPro.  February  2015.  GoPro.    Accessed  March  27,  2015,  
http://files.shareholder.com/downloads/AMDA-­‐2QSTB3/4064749841x0x813221/45EFF987-­‐23C0-­‐422E-­‐9B0F-­‐
DB852BF5208D/Q4_14_IR_Slides.pdf    
10
 Foster,  Tom.  The  GoPro  Army.  Inc.  April  2015.  Accesed  April  1,  2015,  ttp://www.inc.com/magazine/201202/the-­‐gopro-­‐
army.html    
11
 Quittner,  Jeremy.  GoPro  is  Synonymous  With  Founder  Nick  Woodman  (And  That's  a  Bad  Thing).  Inc.  May  20,  2014.  Accessed  
March  25,  2015,  http://www.inc.com/jeremy-­‐quittner/gopro-­‐reveals-­‐financial-­‐highlights.html    
12
 Shontell,  Alyson.  The  Life  and  Awesomeness  of  A  Surfer-­‐Turned-­‐Billionaire,  GoPro  Founder  Nick  Woodman.  Business  Insider.  
June  2014.  Accessed  March  15,  2015,  http://www.businessinsider.com/the-­‐life-­‐and-­‐awesomeness-­‐of-­‐a-­‐gopro-­‐founder-­‐nick-­‐
woodman-­‐2014-­‐6    
13
 Shontell,  Alyson.  The  Life  and  Awesomeness  of  A  Surfer-­‐Turned-­‐Billionaire,  GoPro  Founder  Nick  Woodman.  Business  Insider.  
June  2014.  Accessed  March  15,  2015  
14
 Hein,  Kenneth.  FunBug.com  Looks  to  Infest  the  Net.  Direct  Marketing  News.  August,  2000.  Accessed  March  20,  2015,    
http://www.dmnews.com/funbugcom-­‐looks-­‐to-­‐infest-­‐the-­‐net/article/67854/    
15
 History  of  the  GoPro.  The  Cam  Authority.  Accessed  March  27,  2015,  http://www.goprobuyersguide.com/story    
16
 Mac,  Ryan.  GoPro  Evolution:  From  35mm  Film  to  America's  Fastest-­‐Growing  Camera  Company.  Forbes.  March,  2013.  
Accessed  March  2015,  http://www.forbes.com/sites/ryanmac/2013/03/04/gopro-­‐evolution-­‐from-­‐35mm-­‐film-­‐to-­‐americas-­‐
fastest-­‐growing-­‐camera-­‐company/  
17
 Stevens,  Tim.  Cisco  killing  Flip  line  of  camcorders,  axing  550  employees  in  restructuring  effort.  Engadget.April  2011.  Accessed  
on  March  17,  2015,    http://www.engadget.com/2011/04/12/cisco-­‐killing-­‐flip-­‐line-­‐of-­‐camcorders-­‐shakes-­‐fist-­‐at-­‐hd-­‐recordi/    
18
 Reilly,  Mark.  How  Flip's  demise  got  GoPro  on  Best  Buy  shelves.  Minneapolis/St.  Pauls  Business  Journal.  June  2013.  Accessed  
March  23,  2015,  http://www.bizjournals.com/twincities/morning_roundup/2013/06/how-­‐flips-­‐demise-­‐got-­‐gopro-­‐on-­‐best.html    
19
 History  of  the  GoPro.  The  Cam  Authority.  Accessed  March  27,  2015,  http://www.goprobuyersguide.com/story  ;  Mac,  Ryan.  
GoPro  Evolution:  From  35mm  Film  to  America's  Fastest-­‐Growing  Camera  Company.  Forbes.  March,  2013.  Accessed  March  2015  
20
 Mac,  Ryan.  GoPro  Evolution:  From  35mm  Film  to  America's  Fastest-­‐Growing  Camera  Company.  Forbes.  March,  2013.  
Accessed  March  2015  
21
 EMIS  Professional.  A  Euromoney  Institutional  Investor  Company.  
22
 Mac,  Ryan.  Foxconn  Buys  Stake  In  Camera  Maker  GoPro  Turning  Founder  Into  A  Billionaire.  Forbes.  December  20,  2012.  
Accessed  March  2015,    http://www.forbes.com/sites/ryanmac/2012/12/20/foxconn-­‐buys-­‐stake-­‐in-­‐camera-­‐maker-­‐gopro-­‐
turning-­‐founder-­‐into-­‐a-­‐billionaire/  
23
 Berniker,  Mark.  GoPro  going  public,  but  is  it  a  good  investment?  CNBC.  May  2014.  Accessed  March  21,  2015,  
http://www.cnbc.com/id/101684784    
24
 Lapowsky,  Issie.  Why  GoPro’s  Success  Isn’t    Really  About  the  Cameras.  Wired.June  2014.  Accessed  on  March  20,  2015,  
http://www.wired.com/2014/06/gopro/    
25
 Foster,  Tom.  The  GoPro  Army.  Inc.  April  2015.  Accesed  April  1,  2015,  ttp://www.inc.com/magazine/201202/the-­‐gopro-­‐
army.html    
26
 Bobowski,  Kevin.  How  GoPro  is  Transforming  Advertising  as  we  Know  it.  Fast  Company.  July  1,  2014.  Accessed  on  March  29,  
2015,  http://www.fastcompany.com/3032509/the-­‐future-­‐of-­‐work/how-­‐gopro-­‐is-­‐transforming-­‐advertising-­‐as-­‐we-­‐know-­‐it    

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GoPro: Be a HERO

27
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14
Das  Roy,  English,  Erlwanger,  Hallaran,  Holub,  Yaworsky