GoPro Bets Big On Debuting 360-degree Omni Camera For VR

California-based technology company GoPro, Inc. (NASDAQ:GPRO) recently announced that its 6-camera virtual reality device, Omni, is available for sale.

Launched earlier in April, Omni has been the company’s only major launch this year after the much anticipated 16-camera Odyssey rig’s launch was stalled. Touted as an “end-to-end content creation ecosystem”, Omni allows content creators to capture 360-degree, spherical, VR content and publish it in superb quality.

Inside Omni – What to Expect?

Omni is a cube-shaped device, comprising six action cameras coupled with necessary hardware and software necessary to mesh the footage into 360-degree video, in a compact aluminum rig. The latest device is packed with a host of features including, pixel-level synchronization, error-proof shooting, heat dissipation, greater durability and metadata/SD Card management techniques to pleasure tech-savvy customers.

Moreover, the “Omni Importer” feature will allow users to preview, stitch and publish the content they capture seamlessly. Users can use this software wizardry to preview all shots, trim it according to their needs, chose color correction and select stabilization standard.

Concurrent with the shipment of Omni, GoPro also launched a VR free player called GoPro VR for desktop, web or mobile users. This application will also feature original content from GoPro and inspiring videos from the company’s sponsored athletes. GoPro VR can distribute content over the web and can work with VR headsets like Oculus.

Is Omni for Deep Pockets?

Though it may dominate the wish list of many, Omni’s hefty price tag of $5000 will leave some customers sulking, for sure. However, this is considerably less than the price of Omni’s yet-to-be launched big brother – Odyssey – which is targeted to professionals and can be bought at $15,000. GoPro will also be selling the frame of Omni for $1,500 for customers who have already managed to muster six hero cameras.

The fact that Omni is costlier that most of its competitors like stand-alone spherical cameras including Ricoh's Theta S and JK Imaging's Kodak PixPro SP360-4K can be unappealing for some customers. With Nikon's KeyMission 360 and Samsung (KS:005930)'s Gear 360 slated for release latter this year, it can only be imagined that gaining a rapid traction can be an uphill battle for Omni.

GoPro Bets Big With VR

It is now no secret that GoPro is making some serious strides to venture into 360-degree video and aerial photography in an attempt to break free from its image of “camera maker” to a “content developer”. GoPro is inching close to release its own quadcopter drone, Karma, in the coming holiday season. This is likely to open a fresh revenue stream for the company. GoPro insists that Karma will be powered with revolutionary features that will make it stand out from other drones.

The reception of Karma will be extremely crucial for the company’s rebound that has been wobbly grounds over the past two years – rallying shortly after the IPO, steadily declining in the second half of 2014, turning around in the first half of 2015 and then going down from the second half of the year.

Given that GoPro has not launched any consumer-level offering since the Hero4 Session last summer was met with lukewarm response, Omni’s market traction will be a major determinant for the company’s top-line performance. However, with single-camera solutions trending in the market, it is difficult to predict how GoPro’s rig technology will perform in the coming months.

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From “Camera Maker” to “Content Developer”

Presently, GoPRo is developing various types of software solutions and hardware to curtail the complexity of managing, editing and sharing contents on different media platforms. Its decision to emphasize on software solutions that make it more convenient for users to offload, access and edit their content will prove to be a significant step in the right direction for the company. GoPro is taking steps to solidify its position in the burgeoning virtual reality (VR) market. It recently announced additional software advancements with its new GoPro VR app.

In fact, GoPro now offers one of the world's most comprehensive platforms for capturing, stitching, sharing and enjoying VR content, through its new VR capture rigs, Omni and Odyssey and stitching software – Kolor. We believe that these efforts will pay off in the long term, and go a long way toward opening GoPro to a wider audience and expanding the company’s user base.

GoPro currently holds Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Cable One Inc. (NYSE:CABO) , Central Garden & Pet Co (NASDAQ:CENT) and ITT Educational Services, Inc. (NYSE:ESI) . While Cable One carry Zacks Rank #2 (Buy), Central Garden & Pet and ITT Educational Services sport a Zacks Rank #1 (Strong Buy).