Twitter Inc. has a potential revenue stream in its Periscope App. Periscope is a live video streaming app that Twitter reportedly bought for $100M in March. Periscope was officially launched for iOS under Twitters App Store account in March and the Android version came out in May.
Periscope is not alone in the live-video streaming market. Periscope’s major competitor in the market is Meerkat. Meerkat and Periscope do practically the same thing, except that Periscope allows users to archive broadcasts. More so, the sheer might of Twitter’s backing for Periscope has given the app an edge over Meerket. An interesting point is that both Periscope and Meerkat rely on Twitter to distribute content; hence, the cards are stacked in favor of Periscope.
Nonetheless, Meekat is pulling its own weight and it recently announced an upgrade that might even the playing field. The Verge reported today that Meerkat has unveiled a new option that allows users to live-stream video from GoPro cameras. This new option is a step ahead of Periscope as the battle to win users in the live-streaming market continues. You can expect Periscope to unveil a killer feature in the next couple of weeks.
GoPro Wins without Fighting
The new feature that Meerkat rolled out might actually turn out to be a lifesaver for GoPro. The interest in GoPro Inc cameras has been waning the firm was unable to attract consumers outside the core groups of outdoors and sport lovers. More so, the general consumer electronic markets seem to be moving towards drones and GoPro might become a passing fad.
However, the new alliance with Meerkat might bring in new users who had hitherto not considered buying GoPro cameras. In the second quarter, even with waning interest, GoPro reported earnings of $0.35 per share on revenue of $419.9M above the consensus estimate of earnings of $0.26 per share on revenue of $395.2M.
Twitter Might Have an Ace
The market is practically fed-up with Twitter lack of traction because of its inability to monetize its user base. Twitter is set to release its second quarter (Q2 2015) results on July 28 but the market has low expectations from the firm.
Barely two weeks, ago the shares of Twitter spiked almost 9% on the strength of a fake news that the firm was being bought out. The fact that its shares could jump nearly 9% on fake news about a fake buyout is enough proof that investors are tired with the stock.
However, Periscope might turn out to be an ace to be played when all the chips are down for Twitter. For one, video content is fast becoming a major source of Ad revenue. Tech giants such as Facebook and Google are yet to get into the live-video streaming space and Twitter could establish a foothold with Periscope before their arrival on the scene.