Netflix PR Box flop - Case Study Example

NETFLIX PR BOX FLOP Netflix PR Box Flop The Netflix CEO Reed Hastings and Rendich released a video seeking to explain how poorly Netflix communicated with customers and what the company is doing to fix the anomaly. Notably, the message delivered by Hastings and Rendich was effective in that it regretted the problem and defined the mitigation measures that the company adopted. Nevertheless, this did not appease the angry customers as the company lost 800,000 subscribers in the quarter ending September 30, lost more than a third of its value (Sandoval 2012, p. 1). However, Hastings and Rendich did well in the video by presenting their regrets and mitigation measures (An explanation and some reflections 2011).

Moreover, the video did well in the graphics, setting, lighting, and clarity, and recognizing the significance of the customers at Netflix, Inc (An explanation and some reflections 2011).Nevertheless, had the running time of the video been longer and could the presentation been more formal, the video would have been more valuable.From a customer perspective, the recently announced changes would upset a Netflix subscriber because the changes lead to an increase in prices with no guarantee to quality.

Moreover, the separation of DVD and streaming did not involve customers’ views (Sandoval 2012, p. 1).Prior to the new changes, Netflix offered value to its customers in the entertainment rental industry. That value related to steady supply of internet services, timely and detailed communication, a simple-to-use Web site that delivered DVDs right to the customers’ doorstep at no late fees (Sandoval 2012, p. 1). In developing a communication, Netflix management should consider different stakeholders, which include shareholders and customers.

Such a communication will affect the share price and share value in the stock market. On the other hand, the communication will influence the customers’ choice to subscribe to Netflix. It will also influence the customers’ purchasing power.Ideally, Netflix should handle the negative situation with the “@Qwikster” Twitter handle by apologizing to Netflix twitter followers, address the negativity by devising efficient measures, and responding to the negative tweets in an informed and respectable manner.

It can also hire a PR consultant to advice on the best ways of addressing the online negativity.Furthermore, Netflix management might consider other business actions like seeking for professional advice on business operations, organizational change, and customer relations. The company can also engage in positive online and broadcast advertisement.Works CitedAn explanation and some reflections 2011, Video, Netflix, Los Gatos.Sandoval, G 2012, Netflixs lost year: The inside story of the price-hike train wreck, retrieved 21 January 2014,