While most of us were enjoying our information strategy lecture yesterday, Nick Woodman, the CEO of GoPro has been busy unveiling their new portable Karma drone. With this, GoPro is taking its first steps into the heavily dominated drone market.
With the release of the highly anticipated foldable Karma drone with front mounted camera, controller, and slim design fans and action fanatics are enthusiastic. It even comes with it’s own backpack to take it all conveniently with you everywhere you go. The GoPro team is thrilled, Nick Woodman calls it in some way the ultimate drone, but not everyone feels the same about GoPro’s new direction.
Currently the Chinese drone maker Dajiang Innovation Technology (DJI) is leading in the consumer-level drone market. With by far the biggest market share and having manufactured 42,9% of all U.S. registered drones DJI is not afraid of GoPro entering the market. DJI’s spokesman Michael Perry says that creating a drone is a more difficult task than making a camera. However, analysts say that GoPro’s action seeking customer base has a natural fit with the drone industry and therefore, the strategic expansion makes a lot of sense. Most often consumer drones carry GoPro action cameras anyway, and it’s exactly this overlap that makes it so appealing. On top of it all, with DJI having an estimated market share of 70% GoPro actually only has one real competitor in the constantly growing consumer based drone market.
The Karma drone sells for a super competitive price of only $799, but DJI is rumoured to release a foldable drone next week. So it remains to be seen if GoPro’s Karma drone will be the win the company is hoping for.
The real question here is: Will you buy one?
(Interested? you can buy one here: https://shop.gopro.com/EMEA/karma)
Sources:
http://www.marketwatch.com/story/these-charts-show-why-gopro-has-a-shot-at-dominating-the-drone-market-2015-07-14
GoPro finally debuts its portable Karma drone, priced at $799
http://www.theverge.com/2016/9/19/12961658/gopro-karma-drone-announced-price-specs-release
https://gopro.com/channel/karma-product-stories
Hey Lorence,
Thank you for your interesting and informative post.
DJI not being scared of GoPro entering the market popped into my eye immediately. Although, DJI does indeed occupy the largest share of the drone market as of the present moment, “GoPro” is potentially the most popular choice for people searching to purchase a camera capable of filming, various angles, views at high speeds and under almost all weather conditions or like you say the GoPro “customer base has a natural fit with the drone industry”. Therefore, and also because of the immense brand awareness and popularity, I strongly believe, GoPro will become a large and competitive player in this industry. Thus, DJI should strategically plan and manage business risks by, for instance using Porters 5 forces. GoPro as a threatening new entrant is not something DJI should “not be scared of”.
Moreover, Drones being at the very beginning of the innovation life cycle, of course, involve very high prices. However, this is bound to change with more knowledge and feedback to be gained in the future. Over time drones will become cheaper and more accepted within society, which means the late majority of adopters may also consider purchasing one. Personally, I have no use for a drone at the moment – but who knows, maybe in the future drones will occupy roles currently executed by security cameras, phones, computers or other technology products. I just think it’s crazy that a technology initially designed for war purposes and killing terrorists is also becoming such a popular item in our daily lives.
Furthermore, before allowing the purchasing of so many drones to “regular people” like you and me, I think there should be advanced regulation in place. For instance, as of the present moment, the Federal Aviation administration (FAA) in the US has put the following rules in place:
– Fly below 400 feet and remain clear of surrounding obstacles
– Keep the aircraft within visual line of sight at all times
– Remain well clear of and do not interfere with manned aircraft operations
– Don’t fly within 5 miles of an airport unless you contact the airport and control tower before flying
– Don’t fly near people or stadiums
– Don’t fly an aircraft that weighs more than 55 pounds
– Don’t be careless or reckless with your unmanned aircraft; you could be fined for endangering people or other aircraft
Particularly, the last point I find concerning. These rules are extremely vague and ambiguous, leaving a lot of room for interpretation. Thus, unethical or criminal uses of drones are not 100% counteracted for. In Europe, such regulation is equally vague. I also think it might be beneficial to require a type of “driving licence” to be able to operate a drone.
What do you think?
http://www.pcmag.com/article2/0,2817,2491507,00.asp
https://www.easa.europa.eu/easa-and-you/civil-drones-rpas
Dear Anna,
Thank you for your thoughtful comment. I agree with you that the rules such as ‘don’t be careless or reckless with your unmanned aircraft’ are extremely vague and ambiguous. After your comment I did some more research on the rules and regulations of drone flying and indeed a layperson like you and me don’t actually need a license or basically anything to fly a drone for fun. However, what surprised me more is the fact that getting a drone pilot certificate is way easier than it should be! With this certificate you are allowed to fly a drone commercially (and this could entail anything!). To illustrate; in order to become a pilot of a drone you need to register for $5 and you need to pass an aeronautical knowledge exam for $150 at a testing centre.
When we look at the EU the only direct regulation for this refers to the weight of the aircraft namely; ‘any small unmanned aircraft (SUA) weighing 150kg or less must have adequate insurance’. This again leaves room for misuse by unexperienced parties or even uninformed flyers.
Drones are a developing and interesting technology but they are also a great governmental issue that still needs to be covered. I would advise recreational users to always be careful when operating a drone and to governments I would suggest that they should be more prepared, even for future outcomes.
http://uavcoach.com/drone-certification/#7
http://uavcoach.com/eu-uk-drone-regulations-an-inside-look/
Dear Lucas,
Thank you for your comment; I was once sceptic about the use of drones too. However, as you are saying drones gained immense popularity by and through the use of social media, leading to a real drone ‘hype’. It is good to hear that you wouldn’t let your drone catch dust on top of a wardrobe but instead you would catch some beautiful footage. Especially useful in your case would be the Karma grip that comes with the drone. You can use the grip to attach the drone for when you need a firm hold during crazy activities or just cardio or walks for example. Good luck catching that Tomtit!
Both Lorence and Anna make some valid points with respect to the current drone industry. As Lorence points out, the market is currently rapidly growing, with much interest from commercial parties such as GoPro and market leader DJI. With so relatively few parties occupying the market for hobby drones, ample opportunities seem to be waiting. Having a solid brand name and customer base will certainly be helpful to GoPro, and it looks as if any first mover advantages of DJI will be tested against a decent competitor.
I agree with Anna that legislation concerning the use of drones is increasingly important. As she mentions, governments have been noticing the extreme growth of drone use and are trying to keep up with respective legislation. Whereas safety and privacy are the obvious issues – we can all understand the risks of drones near airports or flying over personal property – it seems like the Dutch government is fairly moderate in its stance to drone allowance. Fairly moderate, because its stance is predominantly soft regarding the use of drones by security forces, such as fire, police and intelligence departments (Rijksoverheid, 2015).
Like Anna mentions, the legislation in general is still quite vague. The Dutch government is no exception to this rule, although it seems to be more willing to explore commercial use and restriction in collaboration with businesses (Elsevier, 2015). Since legislation is always far slower than practice, I am wondering which route we want to take. Should we accept fierce legislation, like currently in France, where flying drones can be easily punished in many instances (Elsevier, 2015)? Or is a liberal climate for drone applications – with potential safety and privacy issues, but close collaboration with society – the preferable solution? Is it even possible to enforce strictness on drones? Will the Netherlands become drone-experiment Walhalla if it does not, with all possible up- and downsides? It would be interesting to hear what others have to think about this!
RIjksoverheid (2015), ‘Kabinet wil meer ruimte voor drones’ [Online], Available at: https://www.rijksoverheid.nl/actueel/nieuws/2015/03/03/kabinet-wil-meer-ruimte-voor-drones
Elsevier (2015), ‘Steeds meer drones in de lucht: hoe pak je de ‘scheefvliegers’ aan?’ [Online] http://www.elsevier.nl/kennis/article/2015/03/steeds-meer-drones-in-de-lucht-hoe-pak-je-de-scheefvliegers-aan-1719935W/
Dear Martijn,
Thank you for your comment. It is indeed very interesting to think about the legislation in The Netherlands in particular and what would be best! I don’t think a strict legislation is needed, but it should be clear what’s allowed and what’s not. The Dutch government cannot just let this trend go by without being on top of it or you might get, like you said, a drone Walhalla. I think there should be a special department or team that continuously does research on the new technologies and features of drones to create regulations that fit the environment. Also they should be responsible for communicating this to the drone flying community in The Netherlands. The upsides to this would be clear and unambiguous guidelines and a fun environment where everyone can safely operate their drone without feelings of uncertainty.
Hi,
Thanks for the great post and reactions so far. I do not own a GoPro myself, but I was quite amazed about the fact that DJI is not afraid of GoPro entering the drone market.
I think DJI should not take the envelopment of GoPro in the drone market too lightly. Firstly, GoPro has become the market leader in action-cameras with a huge user base. Although the overall market of action-camera has shrunk in the last couple of years (competition with normal digital cameras and, more importantly, smartphones), GoPro has managed to grow its user base. Besides the good quality camera, GoPro was able to attract users by not just selling a camera; it sold a whole ecosystem, a way of life, appealing to a lot of different customers. And that’s exactly what they are doing now with their drone. GoPro’s angle is not to sell just a drone, but to sell a whole system that integrates in the ecosystem they’ve already created. I’m sure DJI offers higher quality drones in terms of specifications. But GoPro offers an all-in-one solution which happens to include a drone. The all-in-one case, mount, grip and detachable stabilizer (so it can also be used without the drone) all contribute to this vision.
Another aspect is that GoPro is the leader in action-camera market. The step to drones just makes sense: A drone without a camera is not so cool, so why stay depended on other manufacturers while you can serve the drone-market yourself? This enables GoPro to differentiate their drone by offering GoPro-only features in the future and backwards-compatibility (with mounts, straps et.c). It also enables GoPro to sell more cameras (and drones) by offering appealing bundles. This way, the drone can take advantage of the success of their camera.
Furthermore, throughout the years GoPro has developed a trusted brand name and became a brand which gives the user a social status (somewhat what Apple does in the smartphone market).
So overall, I think DJI should be very afraid of what GoPro could do from its position.
Fun (possible) fact: I’ve read somewhere (could not find the source or verify it) that GoPro’s choice of name “Karma” is a direct hit at DJI. A couple of years ago, DJI entered the action-camera market when things weren’t looking so great for GoPro. Now, GoPro has turned the table.
Dear Sascha,
I agree with you on the fact that GoPro is selling not only their drone or action camera, they are indeed selling the whole package with grip, mount etc, the way of life. I also believe that if they get a foothold in the market it might be tough for DJI to win it back. For now if we compare the two drones from both companies DJI still wins at the basic specifications like weight, size, maximum speed, maximum flight time, and maximum distance. And DJI also wins when it comes to the more technologically challenged features like obstacle avoidance, indoor flight and the follow feature, but when it comes to the camera features GoPro wins most of the points. Considering all this I expect GoPro’s strong customer base to support the drone and with this GoPro’s market share shall remain stable. However, when GoPro is able to make a drone that’s technologically even better than DJI’s I predict the market share to increase.
http://petapixel.com/2016/10/14/gopro-karma-vs-dji-mavic-graphic-compares-important-bits/
P.S. that fun fact dropped my jaws, they guys from GoPro are really bad ass. I hope it is true!
Hey guys,
Thank you for your interesting thoughts on this GoPro Karma and the drone market. I agree to most of your points, especially that DJI should indeed have some concerns about the GoPro Karma.
But now that DJI just launched its new drone, the DJI Mavic Pro, they do show that they have something to hit back on GoPro. This foldable new drone will be cheaper than the GoPro (taking into the account that the Mavic Pro includes a very high quality camera, and the Karma does not), and is very comparable in functionality.
But most importantly, the Mavic Pro offers the functionality of automatically following a person. I am a little familiar with ‘extreme’ sports for which action camera’s such as the GoPro are mainly build, and this is one of the most interesting functionalities that drones could offer to them. Examples are biking down a mountain, going down the pistes on a snowboard and waterskiing behind a boat with a camera that is just automatically following you. This is a hands-free solution for making amazing action shots.
And GoPro, mostly known for its action cameras and the community of extreme sporters around it, is simply not offering this functionality to the Karma drone. The drone will always have to be controlled by a person, which is just a great missing for action seekers.
I think that, especially because of this missing, Karma will not be able to conquer a large market share on the drone market yet. Feel free to react.
Dear Jorn,
As said in a former comment, I also believe Karma’s features are not as strong yet as they should be to conquer the whole market. But indeed once GoPro develops an even better drone the odds might be in their favour. It will at least be interesting to watch the companies ‘fight’ for the drone market.
Thank you for your comment!
Hey Lorence,
Thank you for your great post.
I used a GoPro during vacation and made very nice footage. It especially worked well under water, I am looking forward to what the GoPro can do up in the air.
Thanks.
Dear Stephanie,
Thank you for your thoughts, It is good to know you are happily using your GoPro!
Hi Lorence,
A drone is a great development for the technology. But I am not sure if it is for good use for us people in the society. By that I mean that I don’t see a good reasons why we should watch in someon else his backyard. Maybe the armies can use it better than “normal” people.
What is your opinion about this? Who are going to buy this product?
Dear Sophia,
Thank you for your thoughts. The use of drones amongst recreational users is common in The Netherlands but I really hope people are not using it to see what’s going on in their neighbour’s backyard! As I said in my other comments I do believe that we certainly need clear rules on how and where to fly your drone. You note that you are not sure whether laypersons like you and me should have any use for a drone, and even if I would agree I think we cannot really judge what others do in their free time. Yet still, even if only the army would use drones in The Netherlands we would still need clear and unambiguous rules regarding the use of those drones. We wouldn’t want some soldier snooping around, taking footage of your backyard when you are sunbathing for example! As far as this goes we just have to wait and see how the regulations evolve until then it might be best to keep an eye out for curious drone pilots..
Dear writer,
By this comment i want to express my feelings and opinion for drones and drones especially in combination with a camera/GoPro.
At first i saw the drone as a big hype and more of a boytoy, you will buy one but in the end it will just catch dust on top of your Wardrobe. Against all my expectations during the last years drones became more and more popular for the general public. This in combination with the growing social media market I for see a big future for the drone market.
Gopro is in my opinion a bigger brand/name then DJI. So if they price the drone competitive i consider them to conquer a significant amount of marketshare from DJI. Mainly by their brandname.
Finally, I would buy a drone for sure, as my passion is to capture birds in the wild and with a drone I can capture my favorite bird: ‘the tomtit(mees)’ in his natural habitat from all sorts of angles.