Summary
- Since compact digital camera sales are on a steep decline, Kodak ought to focus on action cameras.
- The Kodak SP360 action camera offers 360-degree videography & photography. No GoPro camera can do this right now.
- Releasing a 4K Resolution version of the SP360 will help Kodak compete with GoPro’s flagship product, the Hero 4 Black.
I previously argued that Kodak (NYSE:KODK) has a viable future in Android/Windows 10 smartphones and tablets. I would like to discuss now the opportunity in the action sports camera sector. The continuing decline in salesof pocket digital cameras is one reason why Kodak and its main partner, JK Imaging, ought to focus more on action camcorders.Kodak could benefit more if it completely abandons the consumer digital camera business and realign its resources in developing action/sports cam products. Unlike digital cameras, the action sports camera segment is on an uptrend.
Futuresource Consulting estimates that action camcorders' global shipments will hit 9 million units by 2018.
Based on the chart above, Futuresource estimates that action camcorders will post global shipment volume worth around $2 billion. TechNavio's also predict the global action camera industry to grow at a CAGR of 23.01% until 2019.The opportunity in action camcorders is big enough such that even Xiaomi, China's biggest smartphone vendor, recently released its own YiCamera actioncamcorder.
I am not saying that Kodak should also release a sub-$100 action camcorder like what Xiaomi did. Kodak already has a great product that can help it compete with GoPro (NASDAQ:GPRO).
The Kodak SP360 Is A Great Alternative to GoPro Products
Kodak managed to come up with a very impressive unique action camcorder. The Kodak SP360 is the first commercial action camcorder to offer 360-degree video recording and photography using a single lens.
The SP360 also comes in a small cube-like design that has the same aesthetic feel of GoPro action cameras. However, the SP360's distinctive feature is its dome-shaped lens on top. The weird-looking lens is the best feature of the Kodak SP360.
The SP360 has 16.36MP ultra wide fix focus 214-degree F2.8 lens which comes with Electronic Image Stabilization. Like other action cams, Kodak also made this product shockproof, dustproof, and water resistant.
(click to enlarge)
Source: KodakIt is true that GoPro dominates the action cam segment today. However, not even the $499 Hero 4 Black camera can match the 360-degree videography feature of the $370 Kodak SP360. The full all-around perspective video recording capability of the Kodak SP360 lets people come up withcreative full HD 1080p videography.
The SP360 is the only action camcorder that allows sports junkies to record their stunts from a variety of angles. I encourage you to watch the user-uploaded videos on Kodak's gallery to appreciate the unique advantage of the SP360. JK Imaging engineers created a revolutionary product that comes with six modes of video capture. Music video directors will love the flexibility of the Kodak SP360's different recording modes.
I am not saying that Kodak should also release a sub-$100 action camcorder like what Xiaomi did. Kodak already has a great product that can help it compete with GoPro (NASDAQ:GPRO).
The Kodak SP360 Is A Great Alternative to GoPro Products
Kodak managed to come up with a very impressive unique action camcorder. The Kodak SP360 is the first commercial action camcorder to offer 360-degree video recording and photography using a single lens.
The SP360 also comes in a small cube-like design that has the same aesthetic feel of GoPro action cameras. However, the SP360's distinctive feature is its dome-shaped lens on top. The weird-looking lens is the best feature of the Kodak SP360.
The SP360 has 16.36MP ultra wide fix focus 214-degree F2.8 lens which comes with Electronic Image Stabilization. Like other action cams, Kodak also made this product shockproof, dustproof, and water resistant.
(click to enlarge)
Source: KodakIt is true that GoPro dominates the action cam segment today. However, not even the $499 Hero 4 Black camera can match the 360-degree videography feature of the $370 Kodak SP360. The full all-around perspective video recording capability of the Kodak SP360 lets people come up withcreative full HD 1080p videography.The SP360 is the only action camcorder that allows sports junkies to record their stunts from a variety of angles. I encourage you to watch the user-uploaded videos on Kodak's gallery to appreciate the unique advantage of the SP360. JK Imaging engineers created a revolutionary product that comes with six modes of video capture. Music video directors will love the flexibility of the Kodak SP360's different recording modes.
Front-facing 214-degreeRing360-degree PanoramicDomeGlobe180-degree front/back split viewThe split-screen front/back video recording is already impressive. Skydivers will be able to record the people diving behind them and scuba divers will be able to capture any hungry shark that is hot on their tail. The SP360 is WiFi and NFC compatible. The Android and iOS app lets users remotely control settings and easily switch to the different six recording modes of the Kodak SP360 via their smartphones or tablets.
The full 360-degree videography function is also perfect for virtual reality products like the Oculus Rift. Kodak's action camera produces videos that deliver immersive experience. People can create videos that empower viewers to feel like they are part of the action. This is something that GoPro has not yet accomplished.
In spite of its 'more immersive' claim, GoPro's SuperView feature only stretches the side of the video capture area and it is still limited to a front-view perspective.ConclusionI opine that by coming up with a unique product, Kodak could gradually steal customers away from the typical front-facing form factor of GoPro cameras. JK Imaging could also come up with a new version of the SP360 that can record in 4K resolution. Professional users will continue to prefer the GoPro Hero 4 Black because of its ability to capture in 4K resolution.
A $499 360-degree Kodak action camera that records in 4K might just attract the professionals who made GoPro the industry standard. Full HD 1920 x 1080 resolution is fine for amateur sportsmen or wedding photographers. However, professional aerial videographers and cinematographers need 4K or up to 4096 x 3112 video footages for digital cinema or broadcast purposes.
Kodak's global brand appeal can help JK Imaging gain the trust of professional and amateur videographers. Kodak also has the option of licensing the 360-degree lens design of the SP360 to Apple (NASDAQ:AAPL). I speculated that Apple might also be interested in competing with GoPro. Apple incorporated elements of the patents it bought from Kodak within the action camera patentthat it received last January.
I believe in the long-term potential of Kodak. However, the monthly technical indicators are very negative for KODK. I suggest that investors should sit on the fence and wait for a cheaper entry point. Kodak's brand power and remaining patents could be licensed to cover more electronic brands, not just cameras and smartphones.
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