GoPro partners with PlayStation to stream video

Nick Woodman, CEO, GoPro, showing the Hero4 Session
John Chiala | CNBC

More gamers around the world can now access GoPro content.

The action camera maker said Tuesday that the GoPro Channel will be available on the PlayStation 4 and PlayStation 3 systems. The app allows PS4 and PS3 owners to stream GoPro content on-demand as well as browse GoPro cameras and accessories.

PlayStation joins GoPro's lineup of distribution partners, including Xbox, Roku, Amazon and Virgin America.

"We want GoPro content and programming to be easily accessible on every platform where our millions of fans spend their time," Jon Cohen, GoPro's director of content distribution, said in a statement. "There's a sweet spot of overlap between PlayStation's super-engaged audience and the GoPro audience, and we're excited to welcome PlayStation to GoPro's expanding OTT family."

The announcement Monday comes at a critical time for GoPro. The stock has suffered a freefall this year, plunging some 70 percent.

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Bears on the stock, such as the team at Morgan Stanley, offer a range of concerns.

For one, the analysts note that recent price cuts to the HERO4 Session camera are helping boost demand, but not enough to reduce inventory sufficiently. (GoPro introduced Session in July, but then cut the price in September and again in November.)

GoPro management attributed the underwhelming response to the Session camera in part to poor consumer awareness. Morgan Stanley, however, pins the problem on a broader and more serious issue: GoPro's software allowing consumers to store, edit and share content, the analysts argue, isn't as user friendly as it should be.

So, what do GoPro bulls argue?

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They note that GoPro is still the dominant player in the market. Research firm NPD notes that GoPro commands 94 percent of the action-camera market in the U.S. That's a $630 million market that's growing at a rate of 40 percent per year.

Fans on Wall Street are betting on what they argue could be a dramatic reversal by the second quarter of next year as a new camera and GoPro drone ramp up just as year-over-year comparisons ease.